Job Hopping Pays Less Now: See New Data on Salary Stagnation

You’re thinking about jumping ship for a bigger paycheck? Hold on a sec. New data just dropped, and it might make you rethink your plan.

Remember when switching jobs almost always meant a sweet raise? Well, things have changed. The pay bump you get from switching is the smallest it’s been in a decade.

The Numbers Don’t Lie

The U. S. Bureau of Labor Statistics and the Federal Reserve Bank of Atlanta did some digging. What did they find? Employees who stayed put saw their paychecks grow by 4. 6% in January and February.

And those who switched? They only got a tiny bit more: 4. 8%. That’s a pretty small difference. A year ago, the gap was much bigger. Staying put got you a 5. 5% raise, while switching landed you a 7. 7% jump.

Why Are People Staying Put?

People are playing it safe. The U. S. Labor Department says fewer people are quitting their jobs. The “quit rate” is the lowest it’s been since 2020.

Why the change? People are worried. They think finding a better job will be tough. They also don’t feel like they have much power to negotiate.

One survey showed that 70% of Americans think finding a better job would be hard. And three out of four believe employers have the upper hand right now.

Real People, Real Struggles

It’s not just numbers. People are feeling the pinch. Take Josh Vogel. He used to make $170,000 a year, plus a bonus. After a layoff, he had to take a job paying only $120,000.

He told The Wall Street Journal, “No one is paying what they used to. ” Harsh, right? He added, “If you don’t like it, there’s 50 people behind you they’re going to call right afterward. ”

Companies Are Hiring Less

It’s a tough market. Companies aren’t hiring as much. This means more competition for fewer jobs.

The hiring rate has been stuck around 3. 3% since June. Back in 2021? It was closer to 4. 6%. Someone at USA Today pointed out that the hiring rate is similar to 2013, when we were still recovering from the Great Recession.

One Exception: Finance

There’s always an exception, isn’t there? The WSJ says finance is the only sector where switching jobs still means a bigger paycheck.

Many banks had a great 2024. They’re paying more to lure talent. But even in finance, things aren’t perfect. JPMorgan gave out lower bonuses than some expected.