Myth 1: The Great Resignation is about quitting.

One problem with the term Great Resignation is that resignation sounds like a pure subtraction. If I told you, “My company suffered a great resignation last year,” you’d probably think that the company had lost a lot of workers. If I continued, “And the firm grew by 20 percent!” you might be very confused.

But that’s what’s happening in the broader economy. The increase in quits is mostly about low-wage workers switching to better jobs in industries that are raising wages to grab new employees as fast as possible. From the quitter’s perspective, that’s a job hop. The low-wage service-sector economy is experiencing the equivalent of “free agency” in a professional sports league. That makes it more like the Big Switch than the Big Quit.

Let’s zoom in on one sector: the accommodations and food-services industry. Mostly composed of restaurants and hotels, this sector has seen more quits than any other part of the economy. But it’s not bleeding jobs. Quite the opposite: Accommodation and food services added 2 million employees in 2021, more than any other subsector I could identify.