The Great Resignation may finally be coming to an end and 2023 could shape up to be an an easier year for businesses, according to Comerica Bank's top economist.
For almost two years companies have had to deal with employee turnover as workers quit their jobs at an increased rate in favor of careers with more benefits, higher pay and a better work-life balance. The trend occurred as workers reevaluated their careers in the wake of the Covid-19 pandemic., senior vice president and chief economist at Dallas-based Comerica, said he sees the tide turning during a year when many experts expect there could be a recession.
"For employers, I think they're probably going to see 2023 as an easier economy than in 2022 or 2021 because the Great Resignation has largely run its course," Adams said."The huge wave of first layoffs and then rehiring and the churn in the labor market when the economy and labor market was overheated in 2021 and 2022 has normalized in the last six months."
After a couple of years of experts talking about"unprecedented" economic conditions, Adams said turnover and hiring in the U.S. are similar to when the pandemic began in March 2020. The quits rate in the U.S., which measures voluntary job exits as a share of total employment, edged up to 2.7% in November from 2.6% in October, but was still down from a record high of 3% at the end of 2021, according to the Bureau of Labor Statistics. The U.S. added 223,000 jobs in December, the fewest since President Joe Biden took office in 2021.On the flip side, a tight labor market and possible recession means it is harder for people who are getting laid off to find new jobs.