Record inflation keeps the Great Resignation rolling

It’s been over a year since the American workplace turned upside down, with employees quitting en masse in search of more fulfilling jobs and flexible work arrangements.

But as inflation hits a 40-year high, stragglers have found yet another convincing reason to jump ship.

“It’s a worker’s market,” says Andrew Flowers, labor economist at job advertisement firm Appcast. “And this bargaining power, it means that, with high inflation, this is the time to either ask for a raise or to potentially find a better offer elsewhere.”

Another 4.4 million Americans quit their jobs in April, the latest numbers show, nearly unchanged from the month before and still among the highest levels in decades.

While job vacancies decreased, there remain almost two jobs available for every worker who’s looking.

With the rising cost of food, gas and everything else giving all Americans a pay cut, workers who haven’t yet made a move have every reason — and every opportunity — to act soon.

The window remains open for now

The consumer price index surged to a spectacular 8.6% in May from a year earlier, putting pressure on workers who would otherwise be happy with the status quo.

Globally, one in five employees is likely to switch jobs in the next year, with most leaving for a better salary, according to a recent survey by accountancy firm PricewaterhouseCoopers.

Over a third are planning to ask for a raise in the next year, though that number is significantly higher in the tech sector (44%) and lower in the public sector (25%).

“Employers know that quit rates are high. They know that job openings are plentiful. And so they know their employees can be choosier,” Flowers says.

The added pressure of rising prices means employers may consider proactively hiking wages to avoid losing employees. Wages and salaries in the private sector increased by 5% for the 12-month period ending in March.

“Employers have a really insatiable appetite at the moment to hire,” Flowers says.

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However, he adds, it’s unclear how long the labor market will remain so tight, especially as the Federal Reserve raises interest rates to cool off the economy.

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How to go about asking for a raise

Whether or not it’s a good time for you to request a raise can really depend on your industry and whether your organization is thriving, says Chelsea Jay, a career coach based in Lansing, Michigan.

The accommodation and food services and leisure and hospitality sectors have seen the highest quit rates, reports Harvard Business Review, while retail and non-durable manufacturing industries have experienced the most growth in their quit rates. Workers in professional and business services are also leaving in droves.

Flowers says it’s fair to bring up rising prices when asking for a raise, though Jay argues that shouldn’t be the focus of the conversation.

“You can talk about inflation — but more than inflation, I encourage professionals to talk about their skill set and what they have brought to the organization,” says Jay.

She recommends talking to your coworkers about your salaries and doing research within your company, industry, city, state and career…