A recent CBS News / YouGov poll found that 69% of Americans were generally optimistic about their personal finances. This is a surprising turnaround from the early days of the pandemic, where millions of workers lost their jobs and were worried and anxious about the future.
The worst recession since the Great Depression seems to be in the rear-view mirror in just over a year. This is a much faster recovery than what was seen after the Great Depression. The difference between the two recessions has a lot to do with their causes. The catastrophe, which officially began in December 2007 and ended in June 2009, was triggered by a housing boom funded by easy lending to consumers by banks, as financial institutions place large bets. It was exacerbated by packaging the loan to. The pandemic recession arose as governments around the world shut down their economies to prevent the spread of COVID-19. Those same governments also provided ample relief to workers out of work, without their own negligence.
The unique nature of the current recession and recovery has caused some earthquakes in the US workforce. As the economy resumes, there seems to be a structural change in which workers and employers are struggling to adapt and prosper. Consider the most obvious example. The US economy has 7.6 million fewer jobs than it did before the pandemic, but at the same time, job vacancies have reached nearly 20 years.
In the post-pandemic period, what workers think about their jobs and careers is shaken. Some of them are not keen on returning to difficult, low-paying, unpaid jobs. Can you blame them? Warehouse work may not be easy, but it certainly pays better than many hospitality jobs, and it often involves health insurance and retirement plans. For others, the pandemic refocused their attention on work-life balance. Who in us wants to sit in traffic for hours each week or navigate public transport? Wouldn’t it be nice to be able to spend that wasted time managing household and family obligations and, in fact, be more productive when working?
These questions encourage many to consider their options. According to recent job indicators and surveys, about a quarter of employees are looking for another job this year, more than one-third of the largest millennials currently in the workforce. States that it is ready to start the search. While many career changers are motivated by the dollar, they are increasingly looking for flexibility and want to be part of an organization that considers new approaches to getting the job done and achieving their goals.
Changes in the labor market have made us think about the FIRE (“Economic Independence, Early Retirement”) movement, which encourages people to retire as soon as possible. Obviously, the closed economy has prompted rethinking of employment, retirement, and potentially career options. As a result, I’m looking for a new post-pandemic move. This is what one of my podcast listeners calls “FINE”. FINE stands for “Financial Independence, New Endeavor” and I think it could be the next iteration on how to adapt to the turmoil we have just experienced.
Imagine that you can save enough early on in work so that you can afford to consider other options early or late in your career. Perhaps the move to hybrid work (a mixed model where some employees return to work and others continue to work from home) is a variety of jobs that some employees have never thought of. Will open the door. And it will fit most of us, just FINE!
Jill Schlesinger of CFP is a business analyst on CBS News. A former options trader and CIO of an investment adviser, she welcomes comments and questions at askjill @ jillonmoney.com. Check out her website at www.jillonmoney.com.
https://www.siliconvalley.com/2021/06/21/jill-on-money-when-saving-should-fine-replace-fire/ Does FINE need to replace FIRE when saving? –Silicon Valley