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Employment numbers are up in 2024, but so is the number of people working part-time. The average work week is steadily shrinking, hitting 34.1 hours in January of this year. Americans may be shifting their mindsets from “living to work” to “working to live,” a trend that started with the post-pandemic “Great Resignation.” But it remains to be seen how this will affect businesses and the way we work in the future.
The Highest Earners Work the Least Hours
As the job market tightens and businesses clamor to fill positions, it appears that some workers have a better bargaining position in negotiating their working hours. Nela Richardson, chief economist at ADP, summarized the situation: “There's never been more people working in America, and yet, individuals, on average, are working less.”
Recent data from the ADP Research Institute reveals that certain demographic groups are working fewer hours compared to the pre-pandemic years. Among these are people earning more than $79,500 a year, as well as younger professionals and female employees.
ADP's research indicates that the average workweek in 2023 hit a five-year low. However, those with more modest incomes — earning $35,400 or less per year — are actually clocking in more hours compared to four years ago.
These numbers point to a quiet rise in wage inequality. High earners have been more likely to see salary increases over the past years, according to a recent survey conducted by Bankrate. This allows them to keep up with the rising cost of living while scaling back their hours.
On the other end of the spectrum, lower-wage workers find themselves struggling with the harsh realities of inflation. The data from Bankrate shows that a significant proportion of individuals earning below $50,000 annually feel their income has failed to keep pace with inflation. This means they have to work more hours or multiple jobs to make ends meet.
Is It Quiet Quitting or Better Work-Life Balance?
The term “quiet quitting” became popular in 2022, with a wave of professionals changing their perspectives and reducing their focus on work. These employees were still doing their jobs, but had disengaged from the “hustle culture.”
Although the term dropped out of Google searches in 2023, some experts say that the ethos behind quiet quitting is here to stay. The pandemic prompted many to reevaluate their priorities and decide to put family, health, and personal time above work.
In fact, Gallup surveys have shown that between 13% and 20% of Americans have reported feeling actively disengaged at work since 2000. This crisis of motivation even prompted the U.S. Surgeon General’s office to urge managers to listen to workers, increase pay, and limit after-hours communication, recognizing the toll that work-related stress takes on mental health.
Before the pandemic, unrealistic expectations fueled by a pressure-cooker work environment led many to feel detached from their jobs, according to Cristina Banks, director of the Interdisciplinary Center for Healthy Workplaces at the University of California at Berkeley. She commented to The Guardian, “People don’t want to go back to the workplace, to go under that same pressure … to go above and beyond what they’re paid to do or push themselves to the limit.”
Now, younger workers, in particular, are advocating for greater flexibility and work-life balance. Recent research from Deloitte confirms this, showing a growing demand for part-time jobs and flexible work hours among Gen Z and millennials.
So, what does all this mean? It seems like the tide is shifting towards prioritizing well-being over relentless work. Whether it's quiet quitting or simply striving for a better work-life balance, the trend suggests a broader reassessment of the role work plays in our lives.
Implications for Companies
In light of the shifting dynamics in the labor market, it's time for companies to reassess their approach to employee well-being and work-life balance. The rise of quiet quitting indicates the need to offer greater flexibility to workers, who have realized that a relentless focus on productivity at the expense of mental health and personal time is not sustainable.
Some employers are going so far as to cut the working week by a whole day, according to an article published in Time Magazine. One such company is UK-based PR company Search Intelligence Ltd. Since adopting the 4-day week in May 2022, managing director Fery Kaszoni affirms that “productivity has increased 25% or 30%.”
As remote work and freelance arrangements become more common, these could offer practical alternatives to the traditional full-time employment model. By offering greater autonomy and choice to their employees, businesses can meet the demand for better work-life balance without sacrificing overall productivity and performance.
Conclusion
The evolving landscape of the modern work week reflects a broader cultural shift toward prioritizing balance and well-being in the workplace. From the phenomenon of quiet quitting to the advocacy for greater flexibility and work-life balance, workers are redefining their relationship with work in response to changing societal norms and economic pressures. As we navigate these transformations, it's clear that the traditional 40-hour work week is no longer the norm for everyone. By embracing initiatives that promote flexibility, autonomy, and holistic well-being, both employees and employers stand to benefit from a more sustainable and fulfilling approach to work in the 21st century.
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