The big quit

The great resignation or "The Big Resignation" is a term that many of us have heard before. He comes from the USA and stands for the phenomenon that employees and workers quit their jobs.

According to the US Bureau of Labor Statistics, around 2021 million people quit their jobs in 47. That is about five times as much as the entire Austrian population. The sectors most affected are healthcare, technology, hospitality and retail.

While hospitality and retail have historically high churn rates, there are a few other reasons why so many people are leaving their jobs. Burnout, dissatisfaction, reconsideration of life values and goals are just some of the reasons.

The numbers may seem shocking at first, but should we be worried? The great resignation did not begin with the pandemic. Resignation has gradually increased in the US since 2009. Then, in 2020, the resignation rate slowed due to the uncertainty brought on by the pandemic. Back in 2021, the government sent out a stimulus check and a record number of workers quit their jobs. However, they also included those who would have resigned anyway in 2020 had it not been for the pandemic.

What is the situation in Austria?

We are also observing the movement on the Austrian labor market. Noisy the StepStone study every fourth employee is considering a job change. In addition, the lack of applicants in some sectors such as IT, healthcare and tourism is causing high demand. In 2021 there were more than 466.000 active job postings. The greatest demand continues to be in areas such as IT, finance and accounting. It is becoming increasingly difficult to attract and retain a highly qualified workforce.

What does this mean for companies?

The great resignation means that power has shifted between employer and employee. Workers now decide how and how much they want to work. Companies are reacting to this by introducing hybrid working models, a 4-day week, higher salaries and more development opportunities.

To find out more about new work or hybrid work For more information, we recommend our previous blog articles.