Most Americans are expecting a recession. If they’re right, companies should expect layoffs and new employees won’t be exempt from the chopping block. Starting in a new position during an economic downturn is a dicey decision. Still, people are quitting in droves.
It’s not that nobody wants to work anymore, they’re just more selective about where they work. And they’re willing to be picky even with the risk of unemployment.
In June, 4.2 million people quit their jobs which is a 24 percent increase from June 2019. It seems like people have a good reason for this uptick.
A new survey from Quicken found that workers who recently changed jobs are more content than those who decided to stay put. The personal finance group polled 1,000 adults. Of those who changed positions, 40 percent said they’re happy compared to 25 percent of those who didn’t.
Employees with equity or stock in their company also felt like it was easier to leave since the stock market is declining.
Growing anxiety
A declining market means rising fear. A study from Allianz, a financial service company, found that 82 percent of Americans are worried that inflation will decrease their purchasing power in the next six months. Another 66 percent are worried that a recession is right around the corner.
Even if they aren’t expecting a full-blown recession, 8 in 10 expect that inflation will continue to rise over the next 12 months.
“Rising costs on necessities like food and gas are hitting Americans’ bank accounts,” said Kelly LaVigne, VP of Consumer Insights at Allianz. “Some might have dipped into their savings to cover those initial increases in the short term. But, as this drags on, the worry about how increasing inflation will affect purchasing power and saving in the long term is increasing.”
Workers are aware of the tough choice in front of them and feel some “angst” while debating whether or not they’ll quit.
Half of the workers who planned to leave their jobs this year decided to wait, according to Quicken. Concern over rising gas prices was the number one reason employees put their plans on hold, followed by recession fears and rising loan interest rates.
Find out: 4 Steps to Take Before “Rage Quitting” Your Job
So, you want to quit your job
While there is always going to be an inherent risk in quitting your job, it is possible to minimize that risk.
The most important thing is to not make any rash decisions. Take the time to form a game plan. Do you have another job lined up? How secure will you be in that job and are you prepared to lose it?
Build up your savings so if you do get laid off you’ll have the money to support yourself while searching for a new position. Ideally, you should have enough money saved to cover several months’ worth of rent and other expenses.
It’s also not a bad idea to pick up a side gig – this can help you build savings and can also guarantee some form of income if you’re left without a full-time job.
If you have this safety net in place, the current job market is a great opportunity to find a job that will make you happier. For every unemployed American there are two open jobs.
But if a recession does come, the market won’t be nearly as open.
