Even if you’re happy at your job, getting a new job for more pay is a good strategy as inflation eats into paychecks
By Julia Carpenter of The WSJ. Excerpts:
"It often pays to switch jobs, and now is one of the best times to do it.
The pay difference between those who stay and those who changed jobs is growing, according to the Federal Reserve Bank of Atlanta. Job stayers, or people who stayed in their job for the past three months, increased their wages by about 4.7% as of June 2022. Meanwhile, those who switched jobs received a raise of 6.4%. The gap is the largest in two decades.
Workers are facing fast-rising prices on gas, groceries, rent and other essentials. Even in a tight labor market, many workers aren’t getting a large enough pay increase at their current job to keep up with inflation, say workers and economists who study the labor market. As a result, some Americans are reconsidering expenses they once considered affordable, while many also are looking for a new job with a bigger paycheck to keep up."
"Some 47 million Americans have changed jobs in the past year"
"the recent group of job switchers is slightly different from past years. Traditionally, more people switch jobs because they are unhappy with their current role. Now, more people are switching for more pay"
"At companies hiring right now, there is almost a tacit acknowledgment that bringing in outside workers will now mean even bigger raises than in the past, say hiring managers. Some have tried other incentives, especially around remote work, but the question of pay is paramount."
"For those who switch jobs to earn more, there are considerable risks.
In recession years—most notably in the aftermath of the 2008 recession—job stayers posted greater wage growth than job switchers, as employers cut positions and those on the job hunt had far fewer opportunities.
Staying in the same job has other potential benefits: security, consistency and the potential for future advancement to leadership positions"
"Employers increasing wages to lure these workers can contribute to inflation"
Workers Quit Jobs at a Record Level in November (January, 2022)The percentage of Americans leaving employers for new opportunities is at its highest level in more than two decades (June, 2021)