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Li Chang'an: The "great resignation" highlights the intensification of labor-capital contradictions in the United States

author:Globe.com

Source: Global Times

In recent times, the phenomenon of "resignation" in the United States has become more and more intense. According to the latest data released by the U.S. Department of Labor, the number of resignations reached 4.4 million in September, with a resignation rate of 3%. That figure is 100,000 more than the 4.3 million in August, setting a new record for two consecutive months. The wave of "Great Resignation" swept through the United States, indicating that its domestic labor conflicts have once again entered a high incidence period, and it is also a concentrated embodiment of the increasingly acute contradictions.

Li Chang'an: The "great resignation" highlights the intensification of labor-capital contradictions in the United States

Under the impact of the new crown epidemic, the global industrial chain supply chain has frequently experienced the risk of interruption. At the same time, the problem of labor shortage is becoming increasingly prominent. A recent survey of nearly 45,000 companies in 43 countries and nearly 45,000 by ManpowerGroup, a globally renowned hr resources firm, found that 69 percent of companies said the number one challenge they face is the difficulty of finding the right people to fill the vacancies, with the gap at its highest level in 15 years. In the United States, nearly half of businesses cannot recruit the skilled workers they need, especially in small and medium-sized enterprises, and more than half of small businesses cannot find the right manpower. According to the U.S. Department of Labor, there are currently at least more than 10 million job openings, significantly more than the 7.4 million unemployed in October.

However, in the case of a general labor shortage, the United States has ushered in a wave of large-scale resignations, and a large number of workers choose to resign and "lie flat". On the face of it, the wave of resignations is affected by the epidemic. From the perspective of the main groups of resignations, the retail, catering and hotel industries, which need to face consumers directly, are the hardest hit areas of this wave of resignations. But the deep-seated reason behind it is the dissatisfaction of the American people with reality, especially the increasingly distorted labor relations, which has become the biggest fuse for the anger of workers.

The widening income gap is one of the important reasons for the increasing tension in labor relations. The gap between rich and poor in the United States is mainly reflected in different classes, races, and income inequalities between executives and employees, which has been exacerbated by the COVID-19 pandemic. Since the outbreak of the epidemic, the US government has taken multiple rounds of economic relief plans in response to the epidemic, and from the actual effect, most of them have flowed to the rich through real estate and stock appreciation, and the wealth of billionaires in the United States has increased by 34% in 2020. Economists estimate that the richest 10 percent of Americans now have an average income more than nine times that of the remaining 90 percent; the richest 1 percent have an average income of more than 39 times that of the 90 percent; and the richest 0.1 percent have an average income of more than 196 times that of the 90 percent.

On the other hand, in order to retain employees, management has also been forced to take salary increase measures, and the average salary increased by 6% in the third quarter. But relatively speaking, the increase is far less than the growth rate of the wealth of the rich, or even the rate of rising prices. According to statistics, the US consumer price index soared again in October, up 6.2% year-on-year, the largest increase in 31 years. At the same time, at the bottom of society, as many as 15 million people are in arrears in rent, and many are at risk of homelessness.

In protest against the serious imbalance in industrial relations, the previously quiet trade union movement in the United States has shown a rising trend. After the outbreak of the epidemic, the attractiveness of trade unions has increased, and the trade union organizations in various industries in the United States have continued to grow, especially the willingness of many young people to join trade unions has also increased. In 2020, the proportion of U.S. union membership rose slightly for the first time, reaching 10.8%, and it is expected to increase further this year. Pollster Gallup's survey showed that 65 percent of Americans support unions, the highest level in 20 years.

At present, the strike movement organized by american trade unions is also in full swing in all walks of life. According to Bloomberg, about 100,000 union workers in the United States are already on strike or preparing to strike, involving multiple industries including catering, health care and manufacturing. In the last two months alone, nearly 40 factories across the country have gone on strike, nearly double the same period last year. Only about 80,000 workers called for "anti-work" at U.S. forums last year. This year, the number has soared more than tenfold, and now it has exceeded 1 million people. These "anti-work" workers call on the American people to "not work", "not to produce" and "not to shop", in order to resist the "shopping festival game" of the capitalists and not to become the bloodsucking object of American capital, because they will only empty the wallets of workers.

It can be seen from this that the wave of "great resignations" that is being staged in the United States is actually a helpless choice and anger venting of workers against the shattering of the "American Dream". If the status of workers is not substantially improved, and the working environment and treatment are not effectively improved, then it is difficult to alleviate labor conflicts, and more intense conflicts may be difficult to avoid. Affected by this, the already weak US economy will be hit harder on the road to recovery. (The writer is a professor at the National Institute of Opening Up, University of International Business and Economics)