From Yahoo Finance · · 1m 50s
Job hopping pays again, if you actually move
Switchers are pulling 7.3% gross pay gains while stayers get 4.4%, but almost nobody is quitting.
In brief
Switchers are pulling 7.3% gross pay gains while stayers get 4.4%, but almost nobody is quitting. The pay premium for switching jobs is real and widening, but it varies sharply by sector and money alone is a weak reason to move. Originally reported by Yahoo Finance.
Switching pays again
ADP's August data shows base pay up 4.7% for private sector job changers versus 3% for people who stayed put.
The gap is even wider
Counting tips, commissions and bonuses, gross pay rose 7.3% for changers and just 4.4% for stayers.
A second source agrees
Atlanta Fed data put the median raise for switchers at 5% in August, up from 4.4% in July. Stayers held flat at 3.6%.
“There is an opportunity to boost wages by changing jobs, even in this low-hire, low-fire jobs market.”
Your sector decides
Construction changers see the biggest bumps because employers cannot find workers. Leisure and hospitality is the only sector where changers earn less than stayers.
“Every sector tells a different story.”
Hourly and Gen Z win
Bank of America Institute found the largest raises going to hourly workers paid weekly and to Gen Z workers starting from low wages.
“For those people looking to change jobs, their bargaining power is definitely increasing.”
Employers cannot fill roles
Nearly 70% of HR professionals report trouble recruiting for full-time jobs, which is what hands applicants leverage on pay.
The missing skills are soft
Eight in 10 HR pros say the hardest thing to find is communication, judgment, decision making, problem solving and time management. Not AI know-how.
Nobody is moving yet
The quits rate has not budged despite the widening premium, per the Labor Department's JOLTS survey.
“So it is still not enough to really get a lot of workers to move yet.”
Confidence is creeping back
New York Fed data shows workers feel better about the job market, which economists read as a sign people may soon make the jump.
“That sense that you have the ability to change jobs indicates that there's underlying confidence.”
Money is one signal
Career coach Aileen Axtmayer says most clients leave because they feel undervalued, not underpaid. Weigh culture, manager fit, growth, flexibility and return-to-office rules too.
“A move can effectively reset your market value and establish a higher compensation baseline.”
The big picture
The pay premium for switching jobs is real and widening, but it varies sharply by sector and money alone is a weak reason to move.
