What is the difference between Shrinkage and attrition?

Shrinkage refers to the reduction in the workforce or available hours due to various factors like absenteeism, breaks, or training, which affects overall productivity. Attrition, on the other hand, specifically refers to the gradual loss of employees through resignations, retirements, or other forms of voluntary exit without immediate replacements. While shrinkage can be temporary and related to day-to-day operations, attrition reflects a more permanent change in workforce size.