By Elliott Wave International
Some people probably remember that country song by Johnny Paycheck from the late ’70s — “Take This Job and Shove It.”
Many of those in the younger generations may not have heard of it given the song was released more than 40 years ago. However, many of them caught the spirit of it just the same as they quit their jobs in droves in what has been called the “Great Resignation.”
You may recall similar headlines to these:
- One Third Of Millennials Plan To Quit Their Jobs After The Pandemic … (April 6, 2021, Forbes)
- Study: Gen Z, Millennials Driving ‘The Great Resignation’ (Aug. 26, 2021, U.S. News)
Indeed, in the last three quarters of 2021, 33 million Americans quit their jobs, and many of them did so without other job prospects.
But what has been driving this “quitting spree”?
Put succinctly, the desire for better working conditions and the optimistic idea that they can be had just around the corner.
Here’s how the Elliott Wave Financial Forecast, a monthly publication which provides analysis of key U.S. financial markets, described this mindset in October:
Here’s the Grand-Supercycle kicker shown on the cover of a recent issue of Time magazine: “There Are 9.2 Million Open Jobs” and “Nobody Wants Them.” Only at a peak in social optimism of monumental proportions would so many choose to “Chill Out” amidst such an abundance of opportunity.
Interestingly, the tops in the Dow Industrials and S&P 500 occurred just three months later in early January.
On Feb. 15, a New York Times article said:
An idealistic generation has set about demanding a utopian world. More diversity, more attention to structural racism, better hours, better boundaries, better leave policies, better bosses.
However, with stocks in a downtrend and optimism fading, here’s an update on the “Great Resignation.”
This is a March 13 Fox Business headline:
‘Great Resignation’: Over 70% of workers regret quitting their jobs
It seems that the majority of people who quit their jobs are learning the harsh reality that very few workplaces even approach an idealist’s version of “utopia.”
Expect this pessimism, as reflected by the Elliott wave model, to increase in all of society, including financial markets.
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The Wave Principle is governed by man’s social nature, and since he has such a nature, its expression generates forms. As the forms are repetitive, they have predictive value.
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This article was syndicated by Elliott Wave International and was originally published under the headline How the “Great Resignation” Ties in with a Financial Peak. EWI is the world’s largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.