|The Great Resignation isn’t paying off like it was this summer.
When US workers began quitting their jobs at a higher rate than usual in 2021, it was partly due to their confidence they could negotiate for higher wages elsewhere. The Great Reshuffle ensued, with Federal Reserve Bank of Atlanta researchers finding in July that job hoppers netted themselves a median annual raise of 8.5%, versus 5.9% for those who stayed put. Boom times!
But now the Fed’s wage growth tracker indicates the window to make a lucrative career move might be closing. Wage growth ticked down from that 8.5% figure this summer to 7.6% in October. Job-hoppers, experts told Insider, don’t have quite as much bargaining power as they did before.
The good news for anyone thinking about making a jump is that it’s still higher than overall wage growth, which sits at 6.4%. TL;DR — quitting for a new job is still profitable for now. The job market remains strong and, observers said, job switching is still a trend. That may not last long, however.
“In general, voluntary job switchers have more leverage than job stayers, but a recession hits all workers hard,” said Daniel Zhao, lead economist at Glassdoor. “As the economy slows, job switchers will increasingly have to make the trade-off between higher pay for less job security.”
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