In the aftermath of the global financial crisis of 2008, and with worries abound about the eurozone crisis, many UK workers are opting to stay at their current job position, despite lower wages and slowed economic growth. The decision to keep a job during these times is not a surprising one, considering the fact that the unemployment rate as at a 17 year high.
While the recession certainly had an impact on how many people chose to resign from their jobs, statistics show that it affected the private sector more than the public sector, as most workers in the public sector did their best to keep their jobs amidst large numbers of terminations. In fact, reports show that the UK labour market was becoming less dynamic even before the global financial crisis of 2008; between 2004 and 2009, the number of workers in the public sector that chose to quit their jobs remained relatively stagnant.
The Office for National Statistics did report that younger people were more likely to resign from their jobs, and this may show some correlation between the high rate of youth unemployment in the UK. Experts speculate that a combination of high unemployment rates, slowed economic growth, declining wages, and personal finance issues, are the primary reasons why UK workers are becoming more willing to stay in less than desirable job positions.
In comparison to the last 13 years, the number of people that chose to resign between the months of April and June dropped by more than 40 percent this year. This statistic shows that market is becoming less dynamic as workers are more concerned with repaying debts and meeting their monthly financial obligations than seeking out new job opportunities. As workers become more complacent, some fear that companies will take advantage of this by initiating pay cuts and offering lower wages to new employees.
