Why the 'great resignation' became the 'great stay,' according to labor economists

Published On Dec 23, 2024, 12:10 PM

The article discusses a shift in the U.S. job market from the 'great resignation' phase, where workers frequently left jobs for better opportunities, to what some economists are calling the 'great stay.' This transformation is characterized by low levels of quitting and hiring, primarily due to increased job security and reduced job openings. High-interest rates have led businesses to slow down hiring, while a reluctance to lay off workers persists due to past challenges in recruitment.

Stock Forecasts

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Negative

With the labor market stabilizing and employers becoming more cautious about layoffs, this may have implications for consumer spending and economic growth. Industries that heavily rely on labor may see challenges in attracting new talent, potentially impacting their growth prospects.

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Positive

The job market's stability could favor companies that provide training and upskilling opportunities, as workers are encouraged to develop new skills. This could boost the demand for companies in the education and training sector.

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