Great ‘resign-ers’ being driven back to work by the global cost of living crisis

Prospect of hunger forcing some back to work

The Great Resignation saw many people leave their jobs during and immediately after the peak of Covid and the winding down of lockdown measures.

Emotional anguish from fear of infection; falling sick or losing relatives to the disease; working from home and the stresses of home schooling; uncertainty about job security amidst furlough or other schemes funded by different governments around the world. All of these and more means it was a very stressful time for many, and it is perfectly understandable why those who were able to might want to take a break from work.

However, for many, there is now a renewed hunger. That is perhaps a literal proposition for some in the near future. As the depth and expected long duration of the cost of living crisis has become more apparent, there is now a need to start earning again.

As the situation progresses, employment market data may likely start to reflect this through reductions in the number of vacancies going unfilled as talent returns, narrowing the skills gap that many economies are experiencing.

Returning to narrow the skills gap

Besides those who resigned in the wake of Covid being driven back to work, there are a couple of other major factors in play that are shaping the job market:

• ‘The Great Unretirement’ – In the UK, during lockdown vast numbers of over 65s retired, exiting the labour market. Covid risks may have made this the clear choice for some, but for others, it was likely enforced. However, analysis of data sourced from the ONS shows that 174,000 have returned in the first half of 2022. Inadequate pension pots, and a lack of inflation protection are forcing many to start earning again. The interest in returning to work from this segment looks set to continue.
• Jumping for better pay – Research of the UK job market shows that some who may have not perhaps been in a position to resign are now looking for a move. The data from reed.co.uk shows the majority of workers (65%) have changed job-seeking priorities as a result of the cost-of-living crisis, with a salary increase becoming a more common priority for workers (34%). Many of these may be hoping to move up in their next role, helping address talent gaps for higher level jobs.

Both the great unretirement and jumping for better pay are trends we are likely to see to a greater or lesser extent in the data from developed economies around the world, including Australia and New Zealand.

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