The Great Resignation – Should You Quit Your Job?

We’ve been reading about it in the news for months, people are quitting their jobs by the thousands. In August, more than 4.5 million people quit their jobs in the United States. Then you factor in the other 11.5 million people who quit earlier this year and the numbers are staggering. Anthony Klotz phrased it right, this is “The Great Resignation”. Where millions of people are voluntarily leaving their jobs in swarms.

But why are so many people leaving their jobs? It can’t just be because of COVID-19 and businesses being temporally shut down, can it?

The answer is never simple and multiple factors always play a role. People are getting feed up with stressful and unhealthy work environments, long commutes to the office, feeling undervalued or micromanaged by their boss. You factor in low wages, a lack of flexibility and no work/life balance… people have had enough!

For some, the pandemic brought retirement a few years earlier than it would have normally been. Baby Boomers are now between 57 and 75 years old and the average retirement age is between 62 and 65 years old. Some Boomers already left the work force and now more are following suit.

For others, the cost of returning to work after a layoff or furlough wasn’t worth it. Some quit work due to childcare issues. With schools operating in remote, learn from home settings and daycare’s constantly closing down due to COVID exposures, many parents have been forced to choose between working and caring for their children.

More than 161 million people make up the workforce in the United States. And a whopping 7.8% of the workforce are juggling multiple jobs. That’s roughly 20 million people working more than one job. Referencing the data from the U.S. Census Bureau’s Longitudinal Employer-Household Dynamics (LEHD), it is clear there are specific industries housing the majority of workers with a second job. Namely health care, food service and retail.

The Top Industries With Workers Holding Multiple Jobs –

Industry	% With Multiple Jobs
Health Care	16.8%
Food Service	16.7%
Retail	14.5%
Admin and Support	10.8%

Resignation trends show that workers in these same industries, like customer service and retail jobs have the highest number of workers quitting. People in these service-oriented jobs traditionally have low wages and lots of interactions with confrontational customers. Those who are working in low paying jobs are the most likely to need a second job just to make ends meet. Even with all those workers having a second job, on average they still make less than working a single job with higher pay.

Notice a correlation? It is no wonder that workers are leaving these industries for higher paying jobs that will cover all of their needs and expenses rather than continuing to balance two jobs. And in some states, the job outlook is far better than others. Alaska, Nevada, Georgia and others are leading the nation in workers quitting their jobs. But they also have the highest number of job openings. The more job openings there are, the more security and likelihood that you can find a better job.

No matter what way you look at it, the United States is facing an enormous labor shortage. Workers are putting a higher price on their time and more emphasis on who they want to work for. It’s not just about earning money anymore. People what to work for a company that cares about them and allows them to have an identity outside of the office. The power dynamic has switched from the company to the job seeker. Which leads to the question, should you join The Great Resignation?

Should You Quit Your Job?

Now could be the perfect time for you to chase down that dream job or make a big career change! But, first things first, you need to have a plan. Write out the pros and cons for leaving. Make sure you fully understand the financial impacts of your decision. If you are not fully vested in your retirement plan at work, you might be walking away from a large chunk of retirement money.

Consider talking with your boss before you quit. Depending upon your relationship and the financial stability of the company, you might be able to negotiate a higher salary or the ability to work remotely. If a company really values you as an employee, they will try to find a way to keep you around.

Try to lockdown a new job before giving your notice. Dust off your resume and make sure you are up to date with the current job market. The market is constantly evolving, and new jobs require new skills to keep up with them. Write a unique cover letter that helps you stand out and touch up your interview skills.

Follow a budget to track your spending habits, make sure you are living within your means and that you can afford to be unemployed even for a short period of time. Sometimes a job hunt can take a lot longer than expected so, make sure you have an emergency fund built up. For a lot of people, going even a few weeks without a paycheck can lead to struggles paying bills and keeping the lights on. You might even consider building up a food storage as an added safety net to fall back on if needed.

Remember, millions of other people are trying to better their own situations and the job market is still competitive! If you feel that moving on is the best course of action, do it! Follow your plan and have safety nets in place and a backup plan in mind. Don’t forget, the grass is not always greener on the other side so, try not to burn bridges on your way out the door. Trust your gut, have a plan, and always remember to follow your heart!