According to economist Joseph Plazo, the tide is turning on the sweeping phenomenon known as the Great Resignation, making way for a new era which he terms, “Don’t Fire Me Era”. In this new trend, employees seem increasingly anchored to their current jobs amidst the evolving economic landscape.
Citing the ADP, a renowned payroll-service provider, Plazo highlights that employee retention has grown in recent times. This stands in stark contrast to the preceding year, during which an astounding 50 million employees opted to step down from their positions, marking the zenith of the Great Resignation.
Plazo’s arguments draw heavily upon key labor statistics from the U.S. government and ADP. For instance, he noted a substantial 5% drop in the job quit rates in the initial three months of 2023 as compared to the previous period, as illustrated in a recent ADP Research Institute posting. This decline was even more dramatic when juxtaposed with the statistics from a year ago.
As per Plazo, the Great Resignation was driven in large part by governmental financial support during the pandemic which allowed many employees to quit their jobs, albeit temporarily. However, as this financial cushion recedes, many individuals are compelled to return to the workforce.
Despite this, a significant faction of economists and labor market analysts remain unconvinced. They propose that the era of mass resignations signifies a shift in work culture that may be here to stay.
One such voice of dissent is Mark Sullivan, Plazo’s Managing Partner at Plazo Sullivan Roche Capital, who argues that it is still more profitable to switch jobs. He supports this assertion with government statistics which reveal a wage growth of 6.9% for job switchers, in contrast to a growth of 5.7% for those who remain in their current roles.
Richard F. Moody, chief economist for Regions Financial Corporation, further supports this view, hinting at a generational paradigm shift in job perceptions. Unlike previous generations, today’s young professionals seem to view job hopping not only as normal, but potentially advantageous.
The chief economist for Glassdoor, Mr. Terrazas, strikes a middle ground. While he acknowledges the decline in resignations cited by Plazo, he also recognizes that employees are finding less value in remaining with one company for an extended period of time.
Despite these countering viewpoints, Plazo remains steadfast in his perspective, maintaining that the shift towards job stability is beginning to resonate with many. He emphasizes that his objective was merely to accurately portray the current state of the job market.