Analysis suggests that now may be the best time to switch jobs.
According to the Federal Reserve Bank of Atlanta, those who stayed at their jobs saw their wages grow by 4.7% over the last three months. However, those who switched jobs saw a pay bump of 6.4%, marking the largest gap in two decades.
Inflation has led the cost of nearly everything to rise to record highs, outpacing any wage increases that have occurred in recent months. Because of this, workers are looking for new ways to keep up with their everyday expenses, and a new job may just be the key.
“I think the workers are paying a lot more attention,” said Yongseok Shin, an economics professor at Washington University in St. Louis. “They are comparing their wage growth with the headline inflation numbers.”
The job market has maintained strength, but research indicates that people are considering switching jobs now more than ever. While job switching is certainly not a new phenomenon, the reasons why have slightly changed.
According to Jennifer Dannals, assistant professor of organizational behavior at Yale University, recent job switchers are doing so for bigger paychecks, rather than dissatisfaction with their current roles.
Still, making the transition to a new job could come with its own risks.
During the 2008 recession, those who stayed at their jobs saw bigger wage hikes than those who switched positions. With several economic experts indicating that a similar economic downturn could be in the near future, workers interested in making the switch must do so soon.
