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The Great Departure

Labels are something we enjoy. Our current labour market dynamic has been dubbed "The Great Resignation" in this situation. This article examines the current resignation trend and offers valuable insight into why it is occurring. The Conference Board's most recent workforce study yielded a number of survey outcomes. The survey's main finding is that, despite the fact that it's the result of a variety of causes, employees are taking this window of opportunity. However, as stated in the article, it is also about workers' need for flexibility and autonomy.

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Despite decades in the workplace, ageing boomers are quitting at nearly twice the rate of their younger counterparts in exchange for the ability to work from any place. At roughly twice the rate of Gen Xers and millennials, baby boomers quit for the freedom to work from anywhere:

17 per cent of the population is made up of baby boomers.

Gen X accounts for 9% of the population.

Millennials account for 9% of the population.

Why will workers continue to leave in droves? Robby Brumberg

Another example of COVID-19 speeding up a phenomenon that was previously invisible to the untrained eye. Authors Charles Goodhart and Manoj Pradhan describe various influences and their impact on the last thirty years of economic activity in their book The Great Demographic Reversal. These forces include globalisation and demographics. This thirty-year period was marked by deflation, owing in part to a labour supply shock. The authors believe such pressures are reversing, and our current experience suggests they are correct. They do emphasise, however, that their conclusions are contentious and go against the beliefs of orthodox economists on multiple occasions. The authors' conclusion (which has been extensively contested) is that the future will be:

Inflation

A decrease in the number of people in their working years

A civilization that is ageing and dealing with the effects of dementia

Real output growth is slowing.

Increased bargaining power of labour

Interest rate hikes are a possibility.

Increased health expenses

A reduction in inequality

These conclusions represent a snapshot of a possible future, in keeping with my belief that we cannot forecast the future but can only rehearse it. One that is backed by numerous crucial signals — and COVID-19 helped to reveal them.

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