Great Resignation

• 19 Jan 2022

Why in News

Recently, in the aftermath of Covid-19, large numbers of people are embracing the credo of “antiwork”, and walking out of their jobs, especially in the US and European countries.

• A record 4.3 million people resigned in August 2021, up 2,42,000 from July, according to the US Bureau of Labor Statistics (BLS).
• The American psychologist Anthony Klotz has called it the “Great Resignation” — a call to remap priorities in the work-life equation.

Key Points

• Impact of Covid:
  
  • While those opting out of work include, prominently, employees in the retail and hospitality sectors, many were willing to switch jobs or to re-evaluate their options.
  • Many countries in Central and Eastern Europe, have recorded a fall in the skilled labour force.
    
    • However, this could be due to stronger social safety nets.
  • Living through and surviving pandemic lockdowns nudged many to see “work-free” living as a viable option.
• Significance of Great Resignation:
  
  • Grievances about low pay, unrealistic deadlines and bad bosses bubbled up from subconscious depths to feed the impulse.
  • This also means that these workers have market values beyond their existing employers.
    
    • They are relying on their experience and contacts to bag better job opportunities or choose start-ups.
  • There is a general apprehension that not enough capital allocation has been made in capacity building.
• Indian Scenario:
  
  • Due to the absence of social security and unemployment benefits, there are no such phenomena in India.
    
    • The luxury of walking out of jobs was not available to most in India.
  • However, remote working has made it possible for corporates and employees to have flexible work models.
  • Due to this, the jobs are moving towards people in tier II and tier III cities. Thereby, making a shift in India’s spatial economy.
    
    • Also, work-from-home has triggered changes in the demand structure in the market.
  • Further, Indians are switching their jobs in the IT and ITeS sectors.
    
    • Several start-ups have become unicorns and many are hiring in bulk and are ready to pay significantly higher.

Source: IE