(Bloomberg) -- The surging cost of living and worries about the future is curbing the zeal of people to quit their jobs and join the Great Resignation, according to Randstad NV, a global provider of employment services.
“There’s still movement, absolutely, but it’s slowing down,” Chief Executive Officer Sander van ’t Noordende said in a phone interview on Tuesday. Consumer confidence and inflation make “people think twice before they jump on a six-week vacation before they have a new job,” he said.
The Great Resignation, which emerged during the coronavirus pandemic, has been a boon to employees searching for better working conditions and higher pay. Economies bouncing back from Covid-19 and work-from-home options have made it easier to quit unappealing positions and look for alternatives, driving up wages.
About 20 million people quit their jobs in the US in the first five months of this year, roughly double what it was a decade ago. More than a quarter of those who left work are reconsidering whether they made the right move, according to a study of more than 15,000 job seekers conducted by Joblist, an artificial intelligence job-search platform.
“We are seeing some clients slowing down hiring but not stopping altogether,” van ‘t Noordende said. “Some clients are thinking: ‘do I really want to let people go at this point, because if the market comes back at some point, I’ve found out it’s really hard to get them back.’”
With companies seeking to respond to demand for more working flexibility as the pandemic recedes, work from home has become increasingly polarizing. Last month, Tesla (NASDAQ:TSLA) Inc. Chief Executive Officer Elon Musk issued an ultimatum for staff at the electric-car maker to return to the office, or leave.
“People are going back to the office but not in droves,” said van ‘t Noordende, adding that the rate of employees working from offices is still at around half of the pre-Covid levels in big US cities. “I do expect that as the market becomes more difficult, showing up in the office will become more important as it likely gives a good impression, which helps your career.”
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