Quitting the 40 Hour Work Week
The widespread quitting of the 40-hour work week is driven by outdated labor policies, technological advancements, and a shift in worker priorities towards flexibility and well-being.
In a world where traditional work paradigms are being challenged daily, a recent commentary from the CEO of Squarespace has reignited a heated debate among job seekers and industry professionals alike. The CEO’s suggestion that Gen Z job seekers should be willing to work for free, endure long hours, and take on any task has sparked widespread conversation and critique. This sentiment, reminiscent of the past ethos of volunteering, starkly contrasts with the belief that one should never offer their talents without compensation.
Historically, working for free was termed volunteering, a noble act separate from the professional sphere where skill and expertise are valued and compensated. The CEO’s remarks come at a time when the job market is undergoing significant shifts, with many reflecting on their career choices and work-life balance.
The Great Resignation and Beyond
The labor market has experienced unprecedented changes in recent years, beginning with the massive wave of resignations in 2021. Data shows that 47 million people quit their jobs that year, setting a record that was soon broken in 2022 when over 50 million Americans left their positions during what became known as the Great Resignation. The trend continued into 2023 with the phenomenon of “quiet quitting,” where employees disengaged from their roles without formally resigning.
Interestingly, this wave of resignations wasn’t limited to lower or middle management; even CEOs, whose average compensation was $16.7 million per year, were stepping down. Notable departures included leaders from YouTube, BP, and Walgreens, signaling a broader reevaluation of work across all levels of the corporate hierarchy.
The Year of the Great Resignation 2.0
As we move through 2024, some experts are dubbing it the “Year of the Great Resignation 2.0.” Recent surveys indicate that three in ten workers are considering quitting their jobs this year, with Gen Z and Millennials leading the charge. This widespread discontent begs the question: What is driving so many people to reconsider their employment?
A Neurosurgeon’s Epiphany
A viral video featuring an MIT-trained neurosurgeon offers some insights. After ten years of performing surgeries, he realised that the key to his patients’ recovery wasn’t solely in medical interventions but in their lifestyle choices. Patients who maintained a healthy diet, exercised, avoided smoking and excessive drinking, and had strong social support systems were more likely to recover and maintain their health. Conversely, those with unhealthy habits and high-stress levels struggled to sustain their recovery post-surgery.
His revelation highlighted a fundamental issue in the healthcare system: treatments that don’t involve medication or surgery are often undervalued because they are less profitable. This realisation led him to quit his prestigious, high-paying job to seek more fulfilling and impactful work.
The Root of the Problem
To understand why so many are leaving their jobs, one must look beyond recent events and delve into historical context. The Fair Labor Standards Act (FLSA) of 1940 established a 40-hour workweek to boost productivity. Since then, technological advancements have dramatically increased productivity, yet wage growth has not kept pace. This divergence began in the early 1970s and has continued due to several factors:
The Taft-Hartley Act of 1947: This act restricted the power of labor unions, leading to a decline in union membership and worker representation.
Investment Tax Credit (1962): Encouraged businesses to invest in technology, increasing automation and efficiency.
Trade Act of 1974: Promoted relocation of manufacturing overseas, resulting in job losses and wage stagnation in the U.S.
Stagflation of the 1970s: High inflation and economic slowdown further decoupled wage growth from productivity.
Deregulation Acts (1978-1980s): Increased competition in industries like airlines and trucking, reducing job security and benefits.
A New Era of Work
The COVID-19 pandemic was a catalyst for many to re-evaluate their careers and lives. The enforced slowdown provided an opportunity for reflection, leading to a shift in priorities. Workers began to value their health and well-being over traditional job stability, prompting a collective rethinking of work-life balance.
Surveys reveal that a significant portion of the workforce is now seeking new opportunities. A recent poll showed that 46% of respondents across 31 countries expressed a desire to quit their jobs, a higher percentage than during the peak of the Great Resignation.
Reasons for Quitting
According to a survey by Statista, the top reasons for quitting include:
Low pay
Lack of advancement opportunities
Feeling disrespected at work
Childcare issues
Lack of flexibility
Poor benefits
Excessive hours
Desire to relocate
Insufficient hours
Employer vaccine mandates
These reasons highlight longstanding issues in the workplace, yet they don’t fully explain the recent surge in resignations.
The Long-Term View
The roots of the current labor market dissatisfaction can be traced back to mid-20th-century labor laws and subsequent economic policies that have failed to keep up with technological advancements and shifts in productivity. In 1940, the Fair Labor Standards Act (FLSA) was amended to establish a 40-hour workweek, with the goal of boosting productivity and ensuring fair wages. This was a landmark decision during an era where the nature of work was drastically different from today. However, as the economy and technological landscape evolved, these laws remained largely unchanged.
Since the mid-20th century, we have witnessed an extraordinary technological revolution. Innovations in automation, computing, and communication have drastically increased productivity. According to data, productivity growth has surged since 1947, meaning that modern workers can produce significantly more output than their predecessors. Despite this increase, wage growth has not kept pace with productivity. This divergence began in the early 1970s and has continued, resulting in workers producing more but not seeing proportional increases in their wages.
Several key legislative and economic developments have contributed to the current state of wage stagnation and job dissatisfaction:
Taft-Hartley Act of 1947: This act curtailed the power of labor unions, which led to a decline in union membership and diminished worker representation. This decline has made it more challenging for workers to negotiate for better wages and conditions.
Investment Tax Credit (1962): Encouraging businesses to invest in new machinery and technology increased automation and efficiency, often at the cost of human labor and wage growth.
Trade Act of 1974: This act promoted the relocation of manufacturing overseas, leading to job losses in the U.S. and putting downward pressure on wages domestically.
Stagflation of the 1970s: High inflation coupled with economic stagnation (stagflation) further decoupled wage growth from productivity.
Deregulation Acts of the 1980s: Deregulation in industries such as airlines and trucking increased competition but reduced job security and benefits for workers.
Globalisation and NAFTA: The North American Free Trade Agreement (NAFTA) lowered trade barriers, increasing competition from countries with lower labor costs, further suppressing wage growth in the U.S.
Rise of the Gig Economy: The 2010s saw the proliferation of gig economy jobs through platforms like Uber and Lyft. While these opportunities provided flexibility, they often lacked the wage protections and benefits associated with traditional employment.
The cumulative effect of these policies has been a long-term erosion of wage growth and job security for many workers. Meanwhile, the cost of living has risen, with housing, healthcare, education, and other essential expenses outpacing wage increases. This has led to increased financial stress and dissatisfaction among workers, setting the stage for the widespread resignations and career reevaluations observed in recent years.
The Future of Work
As we move further into the 21st century, the landscape of work continues to evolve. Several emerging trends are shaping the future of employment, driven by technological advancements, changing worker expectations, and evolving economic conditions.
The COVID-19 pandemic accelerated the adoption of remote work, demonstrating that many jobs can be performed effectively from anywhere. This shift has led to a reevaluation of the traditional office-centric work model. Employees now seek greater flexibility in where and how they work, prioritising work-life balance over rigid schedules. Companies that adapt to these preferences are likely to attract and retain top talent.
Modern workers are increasingly aware of the impact of work on their mental health and overall well-being. The pandemic highlighted the importance of mental health, leading to a greater emphasis on creating supportive work environments. Employers are now focusing on offering mental health resources, promoting work-life balance, and reducing workplace stress to enhance employee satisfaction and productivity.
The rapid pace of technological change means that skills can become outdated quickly. To remain competitive, workers must engage in continuous learning and upskilling. Employers are recognising this need and investing in training programs to help employees adapt to new technologies and methodologies. This shift towards lifelong learning is critical for both individual career growth and organisational success.
The gig economy is expected to continue growing as more workers seek flexible, project-based employment. Freelancing platforms enable professionals to offer their services to a global market, providing opportunities for diverse and independent work. However, this shift also necessitates stronger labor protections and benefits for gig workers to ensure fair compensation and job security.
Advancements in automation and artificial intelligence (AI) are transforming industries by automating routine tasks and augmenting human capabilities. While this can lead to increased efficiency, it also raises concerns about job displacement. The future workforce will need to adapt by focusing on uniquely human skills such as creativity, critical thinking, and emotional intelligence, which are less susceptible to automation.
Modern consumers and employees are increasingly demanding that companies operate ethically and sustainably. Corporate responsibility initiatives, including environmental sustainability, social equity, and transparent governance, are becoming key factors in attracting both customers and talent. Companies that prioritise ethical practices are likely to build stronger, more loyal relationships with their stakeholders.
The traditional linear career path is giving way to more diverse and nonlinear trajectories. Workers are redefining success to include personal fulfillment, meaningful work, and a positive impact on society. This shift is leading to more career changes, entrepreneurial ventures, and opportunities for individuals to tailor their careers to their passions and values.
The long-term view of the labor market reveals deep-rooted issues that have contributed to current dissatisfaction among workers. As we look to the future, the nature of work is set to undergo significant transformations driven by technological advancements, changing worker expectations, and evolving economic conditions. Embracing flexible work arrangements, prioritising mental health, fostering continuous learning, and adapting to the gig economy are crucial steps for employers to attract and retain talent.
The workforce of the future will prioritise well-being, ethical practices, and meaningful work, challenging traditional notions of career success. By understanding these trends and adapting accordingly, both employers and employees can navigate the evolving landscape and create a more fulfilling and sustainable future of work.
Whether this will lead to lasting changes in labor laws and workplace practices remains to be seen, but the conversation has undoubtedly begun. In the end, each individual must decide what path is right for them. Whether staying put, switching jobs, or leaving the workforce altogether, the choices made today will shape the future of work for generations to come.
