The Daily
The Great Resignation is Over
Wed Jul 12 2023Description
The episode covers the end of the Great Resignation, the impact on worker power and wage increases, the uncertainty surrounding worker gains, and ongoing floods in Vermont.
Insights
The Great Resignation
The Great Resignation, a period of rapid job switching across the American economy, is coming to an end. It primarily affected low-wage workers in service industries. Business shutdowns and layoffs during the pandemic led to high demand for workers when businesses reopened. Workers faced unsafe conditions and other challenges when returning to work after lockdowns. Unemployment benefits played a role in giving workers leverage and allowing them to choose better job opportunities.
Worker Power and Wage Increases
Workers had more leverage due to unemployment benefits, allowing them to be selective with job offers. The quitting trend continued even after the expiration of extra benefits, indicating a shift in worker power. Workers became more aware of their bargaining power and started demanding higher wages. Low-wage workers experienced a significant increase in pay, reducing income inequality. The gains in earnings may not last if the labor market weakens or enters a recession. Policies to strengthen worker power have not been implemented by either side of the political spectrum. There is a lack of measures to make wage increases permanent or support workers' long-term interests.
The Impact and Uncertainty
Raising the minimum wage during a period of real-world wage growth would make sense, but it hasn't happened due to gridlock in Congress. While wages are still rising overall, workers at the bottom of the pay scale are not seeing as much growth. The economy is vulnerable to a potential recession, which could lead to the disappearance of worker gains. Workers have experienced a new sense of consciousness and mobilization during this period. There has been increased unionization activity and strike actions. Low-wage workers have gained awareness of their value and ability to seek better opportunities. The long-term impact of the Great Resignation remains uncertain, but workers may hold on to some gains even in a recession.
Floods in Vermont
Governor of Vermont warns residents that flooding is not over despite subsiding rainfall. Floodwaters continue to rise in some areas, surpassing levels seen during tropical storm Irene. Authorities have rescued at least 117 people from cars and homes in remote mountain towns.
Chapters
The Great Resignation
00:01 - 07:53
- A period of rapid job switching across the American economy is coming to an end.
- Millions of Americans quit their jobs before the pandemic, but now the number has decreased and is close to pre-pandemic levels.
- The Great Resignation primarily affected low-wage workers in service industries.
- Business shutdowns and layoffs during the pandemic led to high demand for workers when businesses reopened.
- Workers faced unsafe conditions and other challenges when returning to work after lockdowns.
- Unemployment benefits played a role in giving workers leverage and allowing them to choose better job opportunities.
Worker Power and Wage Increases
07:25 - 15:52
- Workers had more leverage due to unemployment benefits, allowing them to be selective with job offers.
- The quitting trend continued even after the expiration of extra benefits, indicating a shift in worker power.
- Workers became more aware of their bargaining power and started demanding higher wages.
- Low-wage workers experienced a significant increase in pay, reducing income inequality.
- The gains in earnings may not last if the labor market weakens or enters a recession.
- Policies to strengthen worker power have not been implemented by either side of the political spectrum.
- There is a lack of measures to make wage increases permanent or support workers' long-term interests.
The Impact and Uncertainty
15:26 - 23:18
- Raising the minimum wage during a period of real-world wage growth would make sense, but it hasn't happened due to gridlock in Congress.
- While wages are still rising overall, workers at the bottom of the pay scale are not seeing as much growth.
- The economy is vulnerable to a potential recession, which could lead to the disappearance of worker gains.
- Workers have experienced a new sense of consciousness and mobilization during this period.
- There has been increased unionization activity and strike actions.
- Low-wage workers have gained awareness of their value and ability to seek better opportunities.
- The long-term impact of the Great Resignation remains uncertain, but workers may hold on to some gains even in a recession.
Floods in Vermont
22:57 - 24:11
- Governor of Vermont warns residents that flooding is not over despite subsiding rainfall.
- Floodwaters continue to rise in some areas, surpassing levels seen during tropical storm Irene.
- Authorities have rescued at least 117 people from cars and homes in remote mountain towns.