𝗪𝗲𝗹𝗰𝗼𝗺𝗲 𝘁𝗼 𝘁𝗵𝗲 𝗻𝗲𝘄 𝘀𝗰𝗵𝗶𝘇𝗼𝗽𝗵𝗿𝗲𝗻𝗶𝗰 𝗹𝗮𝗯𝗼𝘂𝗿 𝗺𝗮𝗿𝗸𝗲𝘁 Research shows that 25 – 75% of Australians are open to looking for another job in 2021/2022 and yet the national unemployment rate went UP in September while our participation rate is at a 15-year low. Is this a ‘Great Resignation’, higher unemployment or both?
Welcome to the new, schizophrenic labor market. The labour market where there is both a critical skills shortage and high unemployment. So what’s going on?
Experts are predicting that The Great Resignation running rampant in the US and UK is due to hit Australia in March 2022. But I think it may occur earlier than that.
Some people are quitting simply because after the last 20 months they’re tired, they want a break. Others are considering a new job because they want variety and a sense of control back in their lives.
And with record numbers of jobs available according to Seek, they may consider taking the summer off to travel and/or holding out for jobs that tick all their boxes.
Some people may quit to start their own business – the research shows entrepreneurism is up worldwide.
The Great Resignation and higher unemployment happening simultaneously.
Unfortunately there is another reason we will begin to see unemployment creep up.
McKinsey & Company and Accenture have both said that technology implementation has leapt ahead by about 5 years since Covid. And the World Economic Forum is predicting that 50% of tasks will be automated by 2025.
As tasks are automated people will lose their jobs and unless the company can reskill those people they will be unemployed for a time while they endeavor to do it themselves.
This may not be a great resignation but it will certainly be great attrition. And higher unemployment.
Pre-Covid McKinsey & Company predicted that by 2030 we would have 85 million global jobs for which we cannot find staff – and 20 million people who cannot find jobs due to their skills mismatch.
This is the schizophrenic labor market and it’s predicted to last at least through the next decade.
I had the pleasure of speaking with Mitchell Dye at @94.7 The Pulse this week on this topic.
