The pandemic has made a lasting impact on the job market bringing in what is known as “The Great Resignation”.
What is the great resignation you may be asking yourself?
There is a mass rush of people exiting the workforce, and it is occurring at an alarming rate in the United States, but what does this mean for the Canadian job market?
As many people recover from the effects of the pandemic it has given many people to reflect and re-evaluate their life goals. This has caused many people to quit their jobs or completely change their career paths in a pursuit to reach fulfillment through their own work. There are many contributing factors as to why one may resign from their place of work. It could be due to family obligations or returning to school. According to Brandon Bernard, Senior Economics at Indeed Canada, the most common reason for resignation amongst Canadians is dissatisfaction in the workplace. People are no longer content to work in conditions that are merely decent when they can find flexibility, support, and higher paying work from other employers.
The survival mode of the pandemic has made many workers realize the harsh and stressful reality that comes with many working conditions. Most employees find their labor is worth more than what they are being paid for. Nearly one in five employees would consider quitting their job if they don’t receive a raise by the end of the year. 35 percent of Gen Z workers are more likely to switch careers if they are being underpaid. Millennials also trail close behind at 28 percent as shown by the research from the 2022 Salary Guide.
The great resignation is about survival, many Canadians were laid off during the pandemic, leaving them to their own devices. Which in turn, caused many to have to enter new fields of work. Canadians have grown comfortable in their new work roles, and this has topped the structure of the labor industry.
There is an overflow of people working in certain fields such as technology, while healthcare workers struggle to regain their staff. Parts of the labor industry are unable to return to normal such as nursing, caregiving, and food service. The wave of the great resignation has not grown to a large scale like it has in the United States, but Canadians should proceed with caution. The Bank of Canada warns that there is a slow rise in numbers stating 20% of workers are considering voluntarily leaving their job next year.
In closing, we think that employers should take this as a warning and re-evaluate the working conditions in their respective organizations.