The New Labor Market

The U.S. labor market has been transformed by a phenomenon known as the “Great Resignation.” Workers are quitting at rates not seen in decades, employers are struggling to fill job openings and workplace strikes are on the rise. A record 4.5 million Americans quit their jobs in November. Some are leaving the workforce altogether, while others are moving to different jobs, starting their own business or taking on contract work. A variety of factors are believed to have created this trend: greater personal savings, worker discontent, and fallout from COVID-19. In some cases, COVID has caused people to rethink their priorities and career goals. In other cases, millions of people may be suffering from disabilities due to long COVID, making them unable or unwilling to work. The question is whether this trend is temporary — or a permanent alteration of the workforce.