Why employees in the west are quitting their job and how work trends have evolved in India post-pandemic slowdown

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November 12, 2021 5:48 PM

The new phenomenon witnessed a record 4.3 million people quitting jobs in August in the US, says the Bureau of Labor Statistics data.

the Great Depression, pandemic-induced slowdown,, quitting jobs, employees resignation in the west, Bureau of Labor Statistics, employment rate, Job Openings and Labor Turnover summary, unemployement benifitsThe number of resignations in a month to total employment was as high as 2.9 percent in the bureau’s Job Openings and Labor Turnover summary.(Reuters Image)

Just a year after the United States saw the highest rate of unemployment since the Great Depression due to the pandemic-induced slowdown, business houses that are opening up in the country with new confidence is finding yet another road-block, a large number of people are walking out of jobs.

The new phenomenon also sweeping some other countries in Europe witnessed a record 4.3 million people quitting jobs in August in the US, says the Bureau of Labor Statistics data. Moreover, the number of resignations in a month to total employment was as high as 2.9 percent in the bureau’s Job Openings and Labor Turnover summary.

According to American psychologist, Anthony Klotz people are remapping priorities in the work-life equation. He has called the phenomenon the “Great Resignation”

What the pandemic has taught employeers

Surviving the pandemic lockdown made people know about the ‘work-free living as a viable option Reddit’s “r/antiwork” forum that had been in existence since 2013 saw more than 9 lakh followers and 1,400 daily posts last year. Employee grievances related to unrealistic deadlines, meager pay, bad bosses came put and triggered the impulses of the youth.

Who is quitting and why

The Washington Post report last month found that most people who quit their jobs since April belonged to retail and hospitality sectors and were exploring other career options or switching jobs. Most of the quits belonged to accommodation and food services, followed by wholesale trade and then the local government education sector followed closely.

The “not working” or “not looking for work” section has exceeded 14 million in the OECD countries. In Germany and Easter, Central European countries to there is a sharp fall in skilled laborers due to stronger social safety nets.

Sociologist Amrita Datta, also a visiting assistant professor at Germany’s Krea University finds that the major porting of the workforce quitting are mid-ranking professionals who have understood that have more market value than their present organisation gives them and they have the skillset, contacts for better jobs or starting something of their own, something that young professionals or seniors won’t risk venturing into.

Also, start-ups have mushroomed in Berlin and many professionals in their late 30s and early 40s were joining from China and India.

Employee attrition scenario in India

Pankaj Kapoor, Managing Director of the real estate data analytics company Liases Foras told the Indian Express that absence of social security and unemployment benefits makes most employees in India in white-collar jobs stay back. Moreover, unlike other countries where climate dictates work hours, Indians work for 365 days as population resources are high and labor costs are low.

But the remote working model has made work hours more flexible for corporates and employees points up Mr Kapoor. As the pandemic has shifted our spatial economy the offices are diffusing to tier II and tier III cities i.e moving towards employees that the other way around, he noted.

Anuj Puri, chairman of the realty company ANAROCK Group finds that IT and ITeS sectors have gone through a change as start-ups are becoming unicorns and are ready to pay high salaries to the workforce. Moreover, there has been a major uptick in demand for larger homes as people are choosing WFH and e-schooling. This has made developers are shifting to new home size configurations such as 1.5, 2.5 and 3.5 BHK, he further added.

The pandemic became the genesis of new ways of working and looking at work in India and the rest of the world.

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