We've all heard the saying that the only way to get that big pay bump is to switch jobs. You probably even remember back during the pandemic when there was the "Great Resignation" hiring boom, when people were switching jobs and getting a sizeable pay raise. Well, we hate to be the bearer of bad news, but those days are over.
According to a recent Bank of America Institute analysis of payroll deposit data, those who switched jobs in January of this year only saw a median pay bump of about 4%. To put things in perspective, back in 2022 at the peak of the hiring boom, there was a 14% increase from switching jobs. The 4% is also less than half of what workers saw when switching jobs even before the pandemic, back in 2019.
There's a few things that have attributed to this, including not as many open roles and folks staying at their current jobs longer. Professor of economics at the Johns Hopkins Carey Business School, Christina DePasquale, explains, "[a]s hiring has cooled and unemployment has moved closer to its long-run average, workers appear more cautious about leaving their current jobs, which helps explain the recent job-hugging behavior."
Source: CNBC
Scott's Thoughts:
- I knew I should've switched jobs back in 2022. I can only imagine what my salary would be like right now!
- I don't want a raise. I want more vacation days and more permission to work in my home studio.
- I'm too old to be looking for a new job.