- The second quarter saw a record-breaking drop in productivity among US workers.
- Quiet quitting is a key reason, according to some.
- High labor turnover, pandemics and supply chain disruptions are all possible explanations.
You might be right if you think your coworkers are less productive. However, “quiet quitting” is not likely to be the reason.
The following are the largest quarterly decline since 1947, US workers’ productivity — or output produced per hour worked — A record-breaking dropThe Labor Department confirmed the results in the second quarter.
Some of them have SpeculativeQuiet quitting is a way to get rid of stress. termTikTok has made it a popular term for employees who are unwilling to go above and beyond to help their companies. ReasonsFor the dropoff. Although quiet quitting may sound like a phenomenon and a newly-invented phrase, it is actually not. A new one.Therefore, it wouldn’t explain recent productivity declines.
According to June 2018, 32% of US workers were “engaged” in their work, a figure that was up from 28% in May Gallup pollingOver 15,000 Americans. This was a decrease from the 36% that was reached ten years ago in 2020. However, it was still higher than the ten previous years. Only 32% of 2015 was comparable.
Others have suggested another solution to the productivity puzzle: High churn workers in the economy are still trying to figure out their jobs.
Adam Ozimek chief economist at Economic Innovation Group said, “I don’t believe that Quiet Quitting” is real or affecting productivity. SubmittedOn Twitter last week. “I believe it’s more likely that it is actually quitting and the resulting high levels churn or onboarding.”
As more job openings become available Levels nearing records over the past few years, Millions of Americans joined the Great Resignation — with Some even doing so multiple times. “Quick quitting“Leaving one’s job within 12 months was not an option” Close to 10%Comparable to the previous year as of March, and still elevated today, according To LinkedIn data.
The ongoing onboarding Training of new employees is among the reasons — in addition to the Manpower shortage — many Americans have experienced Service that is less than satisfactoryIn recent years. Businesses are also affected by this. Workers who have been laid off are expected to take on the work while newcomers catch up.
Ozimek suggests that “actual quitting” could be one of the key factors in the US’s productivity declines. That could change very soon. He argues. The Federal Reserve raises interest ratesThe job market is the best way to slow down the economy Most likely to be left with some damage. Fewer jobs for Americans would mean less job switching, less onboarding and training, and less reliance on inexperienced workers.
A weaker labor market is a negative thing for the US as a whole. However, Ozimek’s argument suggests that it could be good for productivity.
Remote work, COVID and labor hoarding may also make workers less productive.
One example of how “high levels” of churn or onboarding can affect a business is the airline industry. There have been many cancellations and delays. Angered flyersThe past year has been partly due to Staffing shortages. However, this is not the case. The only problem?, as Delta CEO Ed Bastian He spoke toIn a July earnings conference call.
He stated that since the beginning of 2021, 18,000 employees have been hired and that our active headcount is at 95% for 2019, despite having restored less than 85%. “The principal issue we’re facing isn’t the hiring problem, but rather the training and experience bubble.
However, there are many other factors that could also be contributing to lower productivity.
Some speculate that remote work may have increased. ReducedWorker productivity is increased when workers are employed. AvoidThey are under the watchful eye of their bosses. But, Nick Bloom, Stanford economist and remote worker expert, discovered that hybrid workAt the very least, Productivity increases — and workers put in You can find more hoursThey work better at home than at work.
However, remote workers are more productive when they are up and running. It is possible for new remote employees to be less productive. Zoom still allows you to onboard and train new employees. Still in processOne of the main reasons young people choose to be a part of this generation is because PreferentiallyOffice life
It is clear that the pandemic had an impact on productivity. While employees were used to taking sick days from time-to-time, the pandemic impacted their productivity. hyperdriveDuring the pandemic. It stands to reason then that a workforce that takes more sick days is Productivity is reducedOne that does not will be more productive than the one that does. Employees who take no sick days may experience the opposite. Long-term burnoutThis can lead to poor job performance.
Another explanation could be “Labor hoarding.” Companies that had trouble hiring during the labor shortage might be more likely to let employees go when the economy slumps. Overstaffing could mean that a business may not be able to hire the right people. Plausibly leadTo lower the output per worker.
The supply chain is the last. Disruptions could be yet another factor. One example is a construction worker that waits for key materials to arrive. Productivity is not as high.They are able to accomplish their jobs by having everything they need.
