Younger workers may benefit most from job switchingNew Bank of America research shows that younger workers experience greater wage growth after switching jobs than those who remain in their positions. Gen Z saw the biggest increase, with after-tax wages growing four times as much as those of their counterparts who didn't switch jobs. Older workers and top earners are better off staying in their roles, researchers found, as they see more stable wage growth. While overall wage increases for job switchers are lower than during the pandemic, the data indicate a gradual improvement.
Isn’t this data rather obvious? Younger folks have growth room and should always jump in pay when they change jobs. Old folks, like me, have reached their ceiling and large pay moves are much less likely and thus the costs of changing jobs are the bigger factor in deciding whether to change or not. It has always worked this way; this isn’t new or due to current circumstances.
Loyalty works both ways. GenX was originally taught to be loyal. Millennials started the big job hopping for pay and title growth. Companies are now far less loyal to employees. GenX can lean into their loyal tendencies, but layoffs might just get ‘em. ⚡️
The latest data shows a clear shift in the labor market—job switching is slowing, and the pay premium for leaving is the smallest it’s been in years. While switching roles still offers higher wages, the gap vs. staying has narrowed significantly, signaling a more cautious and stable workforce. For recruiters, this means fewer active candidates and a greater need to lead with long-term value rather than just compensation.
Haven't gotten a raise lately and dreaming of greener pastures?
Even though the labor market is slowing, job-hopping for better pay still favors some workers, according to the Bank of America Institute.
Overall, job switchers saw after-tax and benefit wages grow 8%, better than the 5% increase by those who stayed in the first three months of this year from last year (but the gap between the two is the smallest in seven years).
Older Americans – Gen X and Baby Boomers – were better off staying put in their jobs, while Gen Z is seeing the largest pay increases
Even though the labor market is slowing, job-hopping for better pay still favors some workers, according to the Bank of America Institute.
Overall, job switchers saw after-tax and benefit wages grow 8%, better than the 5% increase by those who stayed in the first three months of this year from last year (but the gap between the two is the smallest in seven years).
Older Americans – Gen X and Baby Boomers – were better off staying put in their jobs, while Gen Z is seeing the largest pay increases