There was a phenomenon in the US labor market during 2022/2023 called “quiet quitting” where laborers across the market realized that companies weren’t paying wages adequately or to a level that reflected the kind of work laborers would perform.
It was thought that companies paid their workers short of what the workers are owed, and in response to that, a large number of people, many trending young, started behaving according to those wages.
This often meant reducing work speed or efficiency, reducing communication, etc. Laborers would claim that they were doing the bare minimum to match their wage compensation.
The other side of this is that the US labor market at that time favored laborers over companies. Workers had more leverage about getting job offers and negotiating terms than companies had, partly due to a rebound from COVID.
This meant that there wasn’t as much of an anxiety of workers being fired from their position since they would find it easy to get another job. So people did look for other jobs, often while working, to see if they might improve their circumstances and land a job that pays better.
The “quiet” part was about sliding back on performance or even job tasks themselves, and the “quitting” part was about workers possibly leaving companies for other offers.
I might have conflated The Great Resignation with this, but both phenomena affect the other.
It all depends on the cost of living relative to the wages accrued. Often wages haven’t kept up with the cost of living, so people feel more and more that the deal with their employers gets worse and worse. Someone earning 200k/year might be living the same as someone working 60k/year depending on where those people live
Now, there is something to be said about why cost of living should vary from place to place. Part of it is scarcity of habitation: if there aren’t very many available flats or lots, there might be fierce competition for people to fill what flats or lots do become available. Supply and demand.
Other aspects might be debt accrued by businesses that they pass on to their customers, externalities like wars or laws, etc.
I also want to point out that a lot of people associate more wealth with more consumption, so you might see people rise to spend all of the new resources they accumulate rather than securitizing and saving that wealth for unforeseen events. Lots of people consume at terribly non-sustainable rates, and there should be conversations about what effects behaviors can have on the world, outside of the economy.
There was a phenomenon in the US labor market during 2022/2023 called “quiet quitting” where laborers across the market realized that companies weren’t paying wages adequately or to a level that reflected the kind of work laborers would perform.
It was thought that companies paid their workers short of what the workers are owed, and in response to that, a large number of people, many trending young, started behaving according to those wages.
This often meant reducing work speed or efficiency, reducing communication, etc. Laborers would claim that they were doing the bare minimum to match their wage compensation.
The other side of this is that the US labor market at that time favored laborers over companies. Workers had more leverage about getting job offers and negotiating terms than companies had, partly due to a rebound from COVID.
This meant that there wasn’t as much of an anxiety of workers being fired from their position since they would find it easy to get another job. So people did look for other jobs, often while working, to see if they might improve their circumstances and land a job that pays better.
The “quiet” part was about sliding back on performance or even job tasks themselves, and the “quitting” part was about workers possibly leaving companies for other offers.
I might have conflated The Great Resignation with this, but both phenomena affect the other.
If someone is paid three times the average salary of his county, acting his wage would be actually working his ass off?
It all depends on the cost of living relative to the wages accrued. Often wages haven’t kept up with the cost of living, so people feel more and more that the deal with their employers gets worse and worse. Someone earning 200k/year might be living the same as someone working 60k/year depending on where those people live
Now, there is something to be said about why cost of living should vary from place to place. Part of it is scarcity of habitation: if there aren’t very many available flats or lots, there might be fierce competition for people to fill what flats or lots do become available. Supply and demand.
Other aspects might be debt accrued by businesses that they pass on to their customers, externalities like wars or laws, etc.
I also want to point out that a lot of people associate more wealth with more consumption, so you might see people rise to spend all of the new resources they accumulate rather than securitizing and saving that wealth for unforeseen events. Lots of people consume at terribly non-sustainable rates, and there should be conversations about what effects behaviors can have on the world, outside of the economy.
Thanks!