From the Big Quit to the Big Stay: How to Maximize the Evolving Labor Market

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Over 50 million people voluntarily left their jobs in 2022, beating out the nearly 48 million who left in 2021, according to BLS data. But after several years of record-high quit rates, the tides may finally be turning in favor of employers. Some of the signs that the Great Resignation (or Big Quit) is over include:

• Quit rates are declining. In June, the number and rate of quits decreased to 3.8 million and 2.4%, respectively. These numbers have steadily declined and are now virtually identical to pre-pandemic rates.
• Labor force participation is rising. The labor force participation rate for workers aged 25 to 54 fell to less than 80% in April 2020, during the height of the pandemic. As of June 2023, the rate had risen to 83.5%.
• Job postings are down. Job openings, a measure of labor demand, dropped to around 9.6 million as of the last day of June, the lowest level since April 2021.
• Pay gains for job switchers are slowing. According to ADP Pay Insights, the pay increases workers gained from switching jobs peaked in June 2022 at over 16%. As of April, this number was down to 13.2% and had declined from around 14% in just one month — the lowest pace of growth since November 2021.

Many experts are referring to the phase we’re entering now as the “Big Stay.” And while employees may not exactly be celebrating this new era, the shift is good news for employers — particularly HR leaders. In fact, retention remains the top source of stress for HR leaders, according to isolved.

But that doesn’t mean HR should rest on its laurels. Rather, leaders should take advantage of the less-stressful labor market to ramp up retention efforts — because if employees do leave, it could be difficult to fill their roles. Workers everywhere are going to be more likely to stay with their current jobs, and recruiting high-quality talent could be a challenge.

Leaders also need to recognize that while employees may not be leaving, that doesn’t mean they’re sticking around because love their job. A June Gallup poll found that an alarming 59% of workers are “quiet quitting” (i.e., they’re disengaged and underperforming). Another 18% are “loud quitting,” meaning they’re actively disengaged.

These eye-opening statistics underscore why companies shouldn’t get too complacent, despite the more favorable labor market. In today’s article, I’ll discuss three areas leaders can focus on to boost engagement and make the most of the Big Stay.

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