What you must consider before quitting your job in a recession

A few decades ago, it was normal for employees to work for the same organization for their entire careers. At present, we observe a huge deviation from this trend. Workers are no longer expected to serve the same company until retirement today.

The pandemic had the US witnessing historic rates of employees quitting their jobs. Today, the economy is slowing down and economists are issuing warnings about the possibility of a recession. The big question now is, “Is it still safe for you to quit your job?.”

The Great Resignation

The Great Resignation is a term coined by Texas A&M University professor Anthony Klotz to describe the massive movement of employees starting to quit their jobs in early 2021. 47.8 million people had quit their jobs by the end of 2021. This record rate of employee quitting didn’t seem to have slowed down even by August 2022. There are several reasons behind the Great Resignation among which the demand for increased wages, the search for better work environments, and the need for a better work-life balance are prominent.

What happens to the job market during a recession?

The typical response of employers to a recession is to freeze the hiring process. Depending on the severity and length of the recession, the measures taken by business owners will vary. A short-lived recession can be dealt with by a hiring freeze alone while a longer and more severe one will cause massive layoffs.

Why American workers are quitting during a recession

You might be considering quitting even during the recession due to several reasons. Most workers want to quit their jobs because of unhappiness in their current position. For some, they realize that the scope of the jobs has seeped beyond reasonable expectations. The need for more stimulating or challenging work and having to work from an office too are driving forces behind this.

Pros of quitting during a recession

Be it during a recession or not, quitting a job that is making you unhappy will have a positive impact on your mental and physical health. Leaving a job that does not offer you flexibility for a better job that allows you to work remotely or adopt a hybrid schedule is advantageous for you. Sometimes, quitting a job that doesn’t give you financial stability in search of better pay is wise. These days, employers are offering higher pay for new recruits. If the industry you are working in will be affected by the lowering buying potential of customers, quitting will be a clever idea. Also, if your industry has a higher chance of getting impacted by a recession, you can get out earlier and look for a better opportunity elsewhere before employers begin laying off workers. Another plus of quitting during the recession is the higher pay offered by businesses.

Cons of quitting during a recession

Despite the multiple advantages of quitting during a recession, there are certain drawbacks you should consider too. One major disadvantage of quitting and joining a new job during a recession is new recruiters being the first to get laid off as the recession hits companies harder. If you don’t offer top-notch talent, your new employer might be more than ready to let you go to keep experienced and senior workers with them. You should also consider the difficulty of finding a new job after quitting. Often, a job search stretches on for weeks. There’s a chance you won’t find the right opportunity due to hiring freezes. This will end up putting you in a financially tight spot.