The COVID-19 pandemic triggered a profound re-evaluation of priorities for many American workers, leading to an unprecedented wave of resignations that has reshaped the US labor market. This phenomenon, dubbed “The Great Resignation,” has seen millions voluntarily leaving their jobs in pursuit of better opportunities, improved work-life balance, and greater personal fulfillment.
What is the Great Resignation?
The Great Resignation, also known as the Big Quit or the Great Reshuffle, began in early 2021 and continues to impact businesses in the US. It is characterized by a significantly higher-than-average quit rate, with employees leaving their jobs across various industries and sectors. This trend is not merely a temporary blip but a fundamental shift in the employer-employee relationship. Workers demand more from their employers and are willing to walk away if their needs aren’t met.
Why are People Resigning?
The reasons behind this mass exodus are multifaceted and complex. Although some cite pandemic-related burnout and a desire for greater flexibility, others point to deeper underlying issues. Here are some of the most notable causes for the rising number of people resigning from their jobs.
- Wage Stagnation: Despite rising inflation and increasing living costs, many workers feel undervalued and underpaid as wages fail to keep pace with economic realities. This disparity has left employees frustrated and searching for better opportunities.
- Limited Career Advancement: Stagnant roles with few growth opportunities have led workers to seek new positions that offer career development, skill-building, and upward mobility.
- Work-Life Balance: The pandemic significantly blurred the boundaries between work and personal life, creating heightened levels of stress and burnout. In response, employees are prioritizing their well-being by pursuing roles that promote flexibility and a healthier work-life balance.
- Company Culture and Values: Toxic or unsupportive workplaces, lack of recognition, and misalignment with organizational values have become deal-breakers for many. Workers are no longer willing to compromise on culture and are leaving companies that fail to foster a positive environment.
Resignation Statistics: A Look at the Numbers
The scale of the Great Resignation is evident in the statistics. Post-pandemic, the US Bureau of Labor Statistics (BLS) recorded the continuous growth in the number of Americans quitting their jobs. Here is a look at the numbers in the last four years.
In 2021, a record 47.4 million Americans quit their jobs, a dramatic increase from the pre-pandemic average. These statistics show that roughly 3.95 million resignations happen monthly, with quit rates peaking at 3.0% in some months. This surge in resignations signaled a significant shift in employee attitudes and priorities.
The trend continued in 2022, with an average of 4 million monthly resignations. Although the initial shock of the pandemic has subsided, many employees are reassessing their careers and seeking better opportunities.
Although the pace of resignations continued its downward trend from 2023, the quit rate remained above pre-pandemic levels, indicating a sustained shift in the labor market. Despite reaching 1.9% in 2024, the BLS still noted that the rate is higher than pre-pandemic levels.
Industries Hit Hardest by the Great Resignation
The Great Resignation has left its mark across numerous sectors, but certain industries have felt the impact more acutely than others.
In healthcare, burnout and stressful working conditions have driven many professionals to leave their roles, exacerbating workforce shortages in an already demanding field. The relentless pace of the industry, coupled with limited support, has made retention a significant challenge.
The hospitality industry has also been hit hard, with workers citing low wages, minimal benefits, and irregular schedules as key reasons for seeking more stable opportunities. Similarly, the retail sector has faced high turnover due to the pressures of customer-facing roles combined with insufficient pay and benefits.
Even the technology sector, traditionally known for its competitiveness, has felt the effects of the resignation wave. With heightened demand for skilled workers, employees in tech are increasingly seeking roles that offer better pay, flexibility, and alignment with personal values, leading to intensified mobility within the industry.
These patterns reveal the varying challenges faced by industries, all of which highlight a growing demand for improved working conditions, stability, and support across the workforce.
How are Companies Responding?
Faced with this unprecedented wave of resignations, companies have been forced to adapt and rethink their approach to talent management. Here are some strategies that companies used to respond to the Great Resignation.
In the face of an unprecedented wave of resignations, companies have been forced to rethink their talent management strategies to retain employees and attract new talent.
Many organizations have increased wages and enhanced benefits packages, recognizing the need to offer competitive compensation to meet employees’ rising expectations. Flexible work arrangements, including remote and hybrid options, have also become a key strategy, aligning with workers’ growing preference for roles that support a better work-life balance.
Investments in employee well-being have gained prominence, with businesses implementing wellness programs, mental health support, and other initiatives designed to reduce stress and promote overall health. Similarly, companies are focusing on upskilling and providing opportunities for professional growth, such as training programs and mentorship, to help employees feel valued and secure in their career paths.
A positive and inclusive company culture has emerged as another critical area of focus. Organizations are working to foster environments where employees feel respected, supported, and connected to shared values, recognizing that a strong culture can significantly boost retention and engagement.
By embracing these changes, companies are better positioned to navigate the challenges of the Great Resignation and build workplaces that attract and retain top talent in an evolving labor market.
( For a deeper dive into how companies are rethinking talent management in the wake of the Great Resignation, check out Bold Business’ insights on How Companies Are Rethinking Talent Management in a Post-Pandemic World. )
The Impact of Company Culture on Performance
The Great Resignation has profoundly affected company culture and performance, with high turnover rates posing significant challenges for businesses.
Loss of productivity has become a common issue as frequent onboarding and training of new employees disrupt workflows and hinder overall efficiency. At the same time, high turnover often impacts team morale, creating uncertainty and negativity among remaining employees, which can dampen engagement and commitment.
Another critical consequence is the loss of institutional knowledge. When experienced employees leave, their expertise and insights go with them, affecting innovation, decision-making, and operational continuity. Additionally, the financial burden of recruiting, onboarding, and training new staff places strain on company resources, reducing profitability.
However, the Great Resignation has also offered companies a chance to re-evaluate and improve. By prioritizing employee well-being, offering competitive compensation and benefits, and fostering a positive, inclusive culture, businesses have the opportunity to create more sustainable and fulfilling work environments. These efforts not only address immediate challenges but also position companies to thrive in the post-pandemic world, attracting and retaining top talent while improving performance.
Long-Term Implications of the Great Resignation
The Great Resignation is more than just a fleeting trend; it has the potential to reshape the U.S. labor market and workplace dynamics for years to come.
One of the most significant changes is the increase in worker power. With a tight labor market, employees are demanding better wages, benefits, and working conditions. This shift in power dynamics has the potential to create a more equitable and worker-focused environment over time.
Workplace norms are also being redefined. The pandemic accelerated the adoption of remote work and flexible schedules, and these practices are likely to remain a fixture. The traditional 9-to-5 office job is giving way to more adaptable arrangements that better align with employees’ preferences.
Another lasting impact is the heightened emphasis on employee well-being. Companies are continuing to prioritize mental health, work-life balance, and holistic wellness as key components of their workplace strategies. Those that excel in these areas will be well-positioned to attract and retain top talent in a competitive labor market.
The widespread labor shortages have also accelerated the adoption of automation and artificial intelligence. Businesses are turning to these technologies to fill gaps and boost efficiency, which could lead to significant workforce shifts, including job displacement in certain sectors.
Finally, the Great Resignation has encouraged many workers to reassess their career paths. This reevaluation has spurred a rise in entrepreneurship, freelance work, and an emphasis on skills development and lifelong learning. These shifts are reshaping how individuals approach their careers, paving the way for a more diverse and dynamic labor landscape.
These long-term implications underscore the transformative nature of the Great Resignation, setting the stage for a future where workplaces are more flexible, equitable, and employee-centered.
A Turning Point for Workers
The Great Resignation highlighted the need for companies to prioritize employee needs and expectations and create a more sustainable and fulfilling work environment. Despite its long-term consequences, it ushered in a new era in the employer-employee relationship, where workers have greater leverage. By understanding and responding to these changes, businesses can continuously navigate the current challenges while building a more resilient and thriving workforce for the future.
