Will 2025 Bring a “Great Resignation Part Two”?
As the end of the year draws near, those of us working in recruitment can’t help but feel the growing turbulence in the job market. There’s an unmistakable undercurrent of change sweeping through industries, a sense that the next wave of resignations and job movement is not only imminent but may be even more pronounced in 2025. It’s a feeling that’s impossible to ignore – especially when you’re on the front lines of matching talent with opportunity.
This sense of uncertainty, paired with shifting worker priorities, is driving what feels like a “prelude” to the next phase of the Great Resignation. But what exactly is causing this impending wave of job movement, and how should both employers and job seekers prepare for the changes ahead?
The term “Great Resignation” first gained prominence in 2021, when millions of workers across the globe left their jobs in droves, driven by a combination of pandemic-induced reflection, burnout, and the search for better work-life balance. But as we approach 2025, many are wondering if we will see a “Great Resignation Part Two.” Will the same forces that drove workers to quit in 2021 continue to fuel a second wave of mass departures, or is the job market shifting in a new direction?
The Forces Behind the Great Resignation—Then and Now
The first wave of the Great Resignation was largely prompted by the pandemic and the seismic shifts it caused in how we work. As offices closed, many workers had time to reconsider what they wanted from their careers, leading many to rethink their roles, industries, and even the traditional 9-to-5 structure. Some left to take on more meaningful work, others pursued passions or hobbies, and many simply sought more flexibility and better pay.
However, as we approach 2025, several factors suggest that a “second wave” of resignations might indeed be on the horizon. But the reasons behind this potential movement are likely to be different from the first.
1. The Search for Meaning and Purpose Continues
The initial wave of resignations was driven by a desire for personal time, work-life balance, and flexible working conditions. However, as we head into 2025, many workers are now more focused on finding ‘purpose-driven careers’ that align with their values and long-term goals. This desire for meaningful work is becoming an even more prominent factor in worker dissatisfaction, particularly among younger generations like Gen Z and Millennials.
In 2025, it’s possible that many workers, especially in industries where job roles are perceived as less fulfilling, could continue to leave positions that don’t align with their deeper values. Employees who feel disconnected from their company’s mission or see little opportunity for growth and contribution may choose to walk away in search of more purposeful work.
2. Continued Focus on Work-Life Balance and Flexibility
While the pandemic proved that many workers could be just as productive working remotely, many organisations are still reluctant to embrace permanent flexibility in work locations and schedules. By 2025, we expect that workers will have a stronger expectation of remote work’ or ‘hybrid work’ models, and those employers who force workers back to the office full-time may find themselves facing a higher rate of turnover.
Workers who feel their quality of life is being compromised could potentially opt for greener pastures, where better quality of work arrangements are being offered. Companies that fail to offer this flexibility or that revert to old practices may see a rise in voluntary departures as employees look for roles that better suit their evolving needs.
3. Burnout and Mental Health
BURNOUT – remains one of the most significant reasons why workers are leaving their jobs. As businesses recover from pandemic-related disruptions, many employees find themselves overworked and underappreciated, especially in industries like hospitality, healthcare, retail, and tech. While some companies have taken steps to improve work environments, the reality of long hours, stress, and burnout is still pervasive.
If organisations don’t prioritise employee well-being and offer a healthier work culture, mental health concerns may push more workers out of their jobs. A new wave of resignations could emerge from employees who feel that their work is taking too much of a toll on their personal lives and health.
4. Economic Factors and Layoffs
The ongoing economic challenges—such as the impact of rising national insurance, inflation, wage stagnation, and the overall rising cost of living – will likely continue to create a sense of economic insecurity for many workers. If we see another wave of layoffs or restructuring, particularly in hospitality, media, or other vulnerable sectors, many employees may opt to leave voluntarily before being forced out. This type of “pre-emptive resignation” could mimic aspects of the Great Resignation, as workers decide to take control of their careers rather than face uncertain job prospects in a volatile market.
At the same time, some industries will continue to see a talent shortage where employers may struggle to retain workers as compensation packages and job roles continue to evolve.
5. Generational Shifts and Changing Expectations
The workforce is evolving, with Gen Z entering the job market in large numbers. This younger generation is highly focused on flexibility, work-life balance, not working over their contracted hours, and the opportunity to make a positive impact through their work. They’re less likely to tolerate traditional corporate structures or cultures that don’t align with their values. As they gain experience and career momentum, many Gen Z workers may be less willing to stay in roles that don’t meet their expectations, fuelling a new round of job resignations.
Rightly so, Gen Z will refuse to work additional salaried hours for no pay and this expectation will be reflect in high staff turnover.
Older generations, particularly Baby Boomers, may also continue to retire or transition to part-time or consulting work, contributing to greater movement in the job market.
6. The Need for Re-Skilling and Career Shifts
As new technologies like ‘AI’ and ‘automation’ continue to reshape industries, workers may feel pressure to re-skill or shift careers altogether. Those whose jobs are at risk of being automated may decide to leave their current roles and pursue new opportunities in emerging industries.
In fact, workers who feel their current roles are no longer viable in the long-term may be motivated to take a leap, driving a second wave of career transitions. The job market in 2025 could see a surge of individuals moving into new sectors, learning new skills, and reshaping their careers to adapt to an increasingly digital and AI-driven economy.
The Bottom Line: A New Era of Job Mobility
In 2025, we are likely to witness another wave of mass job resignations – though not necessarily for the same reasons that sparked the first Great Resignation. This new phase could be driven by a combination of factors: the continued search for meaningful and flexible work, increased demand for mental health support, economic pressures, and generational shifts in the workforce. Workers will be empowered to prioritise their well-being, purpose, and long-term happiness and employers who fail to adapt to these changing needs may find themselves facing increased turnover.
The turbulence we’re feeling in recruitment today is just the beginning of a larger wave of change. And in 2025, the job market will be reshaped by the workers who are demanding more, pushing the boundaries of what work can be, and ultimately reshaping the future of employment as we know it, while employers will need to evolve to attract and retain the talent they need.
Its evident as we near the end of 2024, that the job market is poised for significant movement in 2025.