How economic uncertainty is changing workforce trends

With a weary economy, political anxieties and inflation abound, it is no surprise that 2024 saw fewer people voluntarily leaving their jobs. According to the Bureau of Labor Statistics, the quitting rate dropped to a low 2.2%, with many Americans opting to stay in their current positions. The trend, dubbed the Great Stay, comes only two years after the peak of the Great Resignation, when a whopping four million people were quitting each month. 

The Great Resignation peaked in 2022 as the economy rebounded after the pandemic upended everyone’s day-to-day lives. With the world slowly reopening around them, many workers decided to leave roles, with fields where work is primarily done in person seeing the highest rates of separation. A high quitting rate is somewhat indicative of a strong labor market and economy, with many only choosing to leave a role if they are confident they will be able to find a new one. 

Why it matters: Two years later with high inflation, interest rates and overall cost of living, many feel less secure leaving their positions and are opting to hunker down at their current post. Political anxieties amid the election year and escalating geopolitical conflicts in the Middle East have only compounded these nerves. 

“It’s just the normal ebbs and flows of the market,” said Chris Myers, CEO of Professional Alternatives (Houston, TX). “When the market is unstable and unemployment is starting to creep up or there’s a period of economic uncertainty, people are going to stay at their jobs longer because there’s a lot more uncertainty out there.” 

For credit departments, this might mean employees are sticking around and looking to get promoted from within rather than leaving the company. “We are seeing a bit more of a settle, where people are hunkering down,” said Tony Allen, CBA, credit and collections supervisor at Apex Systems (Glen Allen, VA). “For us, we are starting to see some stability.”

The pandemic saw a surge in remote work amid widespread shutdowns, but even as the world reopened remote jobs seem to be here to stay. In 2019, 10.5% of the finance and insurance industry worked remotely, according to the Bureau of Labor Statistics. This number more than tripled within two years, with 37.6% of finance and insurance workers clocking in from their homes in 2022.  

For Chris Kyriakopoulos, CICP, national credit risk manager for Robert Half International (Lewisville, TX), the onset of the pandemic meant his company became fully remote, with staff relying on Microsoft Teams for quick communication as they all worked from home.

 “Hybrid work demands adaptability, effective use of technology and intentional relationship-building to keep credit departments agile and efficient,” Kyriakopoulos said. “As a credit manager, we have become more strategic, leveraging data insights and fostering collaboration to mitigate risks while supporting growth.”

Two years ago, jobseekers had more power as companies were looking to fill positions, whereas now the market has shifted back and granted companies more power. As companies regain this leverage, remote positions could become scarcer as the more competitive job market means companies are no longer appeasing applicants with working from home options. 

“There’s going to be fewer jobs with a higher number of people that are applying for them, so those positions are certainly going to be harder to land,” Myers said. “But from the company’s perspective, if you’re looking to acquire talent, it could make your job more marketable.” 

Hybrid working models, where employees work both in person and at home, have become increasingly popular since the pandemic. Hybrid schedules combine remote and in-person work, allowing employees to work partially from home without losing the collaborative environment of the workplace. 

For credit managers, working at least partially in person can be beneficial as it increases engagement across different departments. “As a credit manager, you always want to be able to interact with sales,” Allen said. “You want the ability to go knock on someone’s door and say, ‘Hey, we got a client we have to talk about.’ While the technical aspects of credit can be done remotely, in person relationship building is critical.” 

The bottom line: Despite the popularity of a blended in-person and remote work model, companies such as Amazon, Disney and JPMorgan have announced they will transition out of their hybrid models back to a traditional five-day work week. As the Great Stay ushers in a new dynamic between companies and jobseekers, many companies may look to decrease the time spent working outside the office.