setback / regression
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setback
A movement or development back to an earlier, worse state or a lower level. It is the opposite of progress.
Die Schließung der Bibliothek ist ein kultureller Rückschritt für die Stadt.
The closure of the library is a cultural setback for the city.
The word is made up of the prefix 'Rück-' (back) and 'der Schritt' (the step). So it literally means a 'step backward' and is usually used negatively in the sense of a deterioration.
Für seine persönliche Entwicklung war der Jobwechsel ein Rückschritt.
For his personal development, the job change was a setback.
'Rückschritt' (setback) is often used with the verbs 'sein' (to be), 'bedeuten' (to mean/represent), or 'darstellen' (to constitute/represent) to evaluate a negative development. You can also say 'einen Rückschritt machen' (to take a step backward).
Die neue Regelung stellt für die Mitarbeiter einen großen Rückschritt dar.
The new regulation represents a major setback for the employees.
To say for whom or what something is a setback, you use the preposition 'für' (for) followed by the accusative.
Die Kürzung der Gelder ist ein herber Rückschritt für die Forschung.
The funding cuts are a severe setback for research.
resignation / withdrawal
In sports or dance, der Rücktritt refers to a step backward. Der Rückschritt, by contrast, is a movement or development toward an earlier or worse state. If you mean a physical step, Rücktritt is appropriate; if you mean negative development, Rückschritt is the right word.
Nach den neuen Problemen ist die langsame Entwicklung ein deutlicher Rückschritt.
After the new problems, the slow development is a clear setback.
Beim Tanz übt die Gruppe heute den Rücktritt mit drei kleinen Schritten.
Today, the group is practicing a backward step using three small steps in dance class.
