Business Daily Media

Australia isn't experiencing the great resignation yet, but there has been an uptick

  • Written by Martin Edwards, Associate Professor in Management and Business, The University of Queensland
Australia isn't experiencing the great resignation yet, but there has been an uptick

The past year has been awash with suggestions countries such as Australia are experiencing a “great resignation” as workers previously loyal to their employers quit their jobs and look for others elsewhere.

Last year, newspaper articles aside, there was little evidence for this in Australia, although substantial evidence in the United States where the term came from.

In the US, so-called “quit rates” hit a record high in 2021, while in Australia the proportion of workers switching jobs fell to its lowest point in half a century. Writing in November, University of Melbourne economists Mark Wooden and Peter Gahan pointed out that in the US, COVID had made public-facing jobs unsafe[1], which may have contributed to people quitting these roles en masse. Quit rates hadn’t climbed in US finance or information technology jobs. Read more: Australia's 'great resignation' is a myth — we are changing jobs less often[2] In Australia, where border closures, mask mandates and vaccination mandates made public-facing jobs safer, job-switching continued its long-term decline. Until now. The annual February mobility survey published by the Bureau of Statistics in May shows an uptick in the proportion of workers switching, from a record low of 7.5% to 9.5%[3]. One way to look at the uptick is to say Australia has the highest switching rate since 2012. If records only went back to 2012, we could say Australia had the highest switching rate on record. But here’s the thing. The US records only go back to December 2000[4]. If they went back further, US quit rates might be seen to be on the same sort of long-term slide as Australia’s. We just don’t know. In Australia’s case, recent job mobility rates over the last decade or two have been extraordinarily low compared to historical job mobility levels. For all we know this is the case in the US as well. At one point the late 1980s, almost one in five Australian workers changed jobs in a year. These days, even after the latest uptick, it is one in ten. The uptick might be little more than a rebound from a specific historic low caused by lockdowns and border closures. Read more: Despite record vacancies, Australians shouldn't expect big pay rises soon[5] We can be sure that the uptick in job switching is not due to an uptick in retrenchments. Australia’s retrenchment rate[6] (the number of people who are retrenched in a year as a proportion of the number employed at the start of that year) fell to a 50-year low in February. Another thing we know is that there are more job vacancies[7] (and more job vacancies per unemployed persons) than ever before in Australia. There were 423,500 unfilled jobs in February, and 563,300 unemployed, meaning there were only 1.3 unemployed people chasing each vacant job, the slowest ratio in records going back to 1980. More job vacancies for each unemployed person than ever before Seasonally adjusted. ABS labour force, job vacancies[8] This is likely to mean that more people will be tempted to switch jobs soon. They might even be doing it, meaning the uptick will continue when the figures are updated next February. Watch this space. Read more: An extra 60,600 Australians found work in May. Here's why wages aren't moving much[9] References^ unsafe (theconversation.com)^ Australia's 'great resignation' is a myth — we are changing jobs less often (theconversation.com)^ 9.5% (www.abs.gov.au)^ December 2000 (www.bls.gov)^ Despite record vacancies, Australians shouldn't expect big pay rises soon (theconversation.com)^ retrenchment rate (www.abs.gov.au)^ job vacancies (www.abs.gov.au)^ ABS labour force, job vacancies (www.abs.gov.au)^ An extra 60,600 Australians found work in May. Here's why wages aren't moving much (theconversation.com)Authors: Martin Edwards, Associate Professor in Management and Business, The University of Queensland

Read more https://theconversation.com/australia-isnt-experiencing-the-great-resignation-yet-but-there-has-been-an-uptick-184384

Business Reports

Why you need an Australian digital marketing agency

When you're looking to grow your business, hiring a digital marketing agency can be a great way to get started before hiring in-house. You can also use an agency to partner with a small in-house team to get things done faster. ...

How to Advance Your Career in Nursing (Easy Guide)

In 2022, many nurses are focused on career progression. If you’re one of them, this easy guide is exactly what you need. According to the World Health Organization (WHO), there are approximately 27 million men and women nurs...

What is neoliberalism? A political scientist explains the use and evolution of the term

President Ronald Reagan, shown here speaking in Moscow in 1980, was an early adopter of neoliberalism in the U.S. Dirck Halstead/LiaisonNeoliberalism is a complex concept that many people use – and overuse – in differe...

Deciding whether buying a franchise is right for you

How do you know if buying a franchise for sale will be the right move for your business? Here are some of the most important factors to consider when determining whether or not to buy a franchise. Identify your financial goal...

Escrow.com partners with Australian farmer network ONFARM

Escrow.com, the leading provider of secure online payments and a wholly owned subsidiary of Freelancer Limited (ASX: FLN, OTCQX: FLNCF), today announced a partnership with ONFARM, a world-first agricultural meeting and market...

Inflation rates are rising in the US – an economist explains why

A variety of factors have caused the U.S. inflation rate to increase over the past few years, from the pandemic to the war in Ukraine.Javier Ghersi/Moment via Getty ImagesConsumer prices in the U.S. are rising due to inflation at ...

Web Busters - Break into local search

WebBusters.com.au