The US is not the only country grappling with the ‘Great Resignation’, the continent of Europe is also struggling.
New research from Morgan Stanley found that 10% European workers are keen to leave their full-time job in the next six months. They are interested in making their side hustles of social media, e-commerce and trading into the main source of income.
To do this research Morgan Stanley surveyed 12,500 employees in Germany, Spain, France, UK and Italy.
Economists at the bank told Bloomberg: “The received wisdom is that as COVID-19 subsides, and with modest extra flexibility from employers, the majority of people will re-embrace their prior routines. Our data suggest otherwise.”
This quitting trend was particularly elevated in the UK and Germany, and among those paid less than €40,000 per year. Morgan Stanley economists noted: “Millennials are poised to move first, with Gen-Z more distant in their ambitions.”
Morgan Stanley warned that if labor shortages across Europe continue due to the ‘Great Resignation’ then the economic recovery and wage inflation will take longer to recovery.
“It reveals a far greater potential risk of structurally higher wages,” wrote Morgan Stanley.
Spotlight on Germany
There has been a lot of talk about the UK labor market and its recovery, so let’s focus on the German market.
Germany is Europe’s largest economy, and it seems to be struggling with finding and hiring skilled workers.
The Washington Post reported that in August a third of all Germany companies, as a result the German federal employment agency said that they would need to import 400,000 skilled workers a year to correct the shortage.
Hans Böckler Foundation’s head of the European economics unit at the Macroeconomic Policy Institute Andrew Watt told Politico. “Frankly, this is a pay issue. Wages will have to increase in these sectors to get people back into tough, low-paid jobs. That’s no bad thing.”
Ultimately, the ‘Great Resignation’ is showing no signs of letting up globally – in fact Forrester things it is going to continue globally into 2022. So companies across the world need to think carefully about how they can retain their staff, as well as how they can continue to recruit successfully in the future of work.