Job Switchers: Is the Pay Bump Worth It?
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What is the main topic discussed in this episode?
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Here's your Money Briefing for Tuesday, July 26th. I'm J.R. Whelan for The Wall Street Journal. You've heard us talk about the millions of workers who've capitalized on the sizzling labor market and quit their job for a new one with higher pay.
How much higher are pay bumps for people who switch jobs versus stayers?
But when you run the numbers, is leaving your job for a salary bump as rosy as it sounds?
So when you're leaving one job for a new job, there's a tradeoff. You know, you're trading off higher pay for some unknowns.
Coming up, we'll talk to Wall Street Journal personal finance reporter Julia Carpenter about how much of a bump job switchers have gotten and help answer the question, should I stay or should I go? That's after the break.
What data source shows the wage-growth gap between job switchers and stayers?
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A hallmark of the post-pandemic labor market has been the great resignation. Millions of workers quitting their jobs to go somewhere else for higher pay. But how much more money are they getting than workers who didn't leave? And are there benefits of staying put and not handing in your two weeks notice? WSJ personal finance reporter Julia Carpenter tackled those questions, and she's here with the numbers. Hey, Julia, thanks for being with us.
Thank you for having me.
All right, Julia, tell it to us straight. How big are these pay bumps people are getting when they switch jobs?
So there's always been a slight gap between people who switch jobs and people who stay at jobs. That gap is growing, though. As of June 2022, people who switched jobs received an average raise of 6.4%. They saw wage growth higher than 6%. That's data that we have from the Federal Reserve Bank of Atlanta.
What non‑pay incentives are employers offering to attract workers?
But when you look at people who've stayed in their job for the past three months, they saw four point seven percent wage growth. So that's a that's a gap of almost two percent. And that's the largest difference between these groups in two decades.
So what other things besides pay or employers putting on the table to lower workers to make a move?
So typically, people have done things like offered more flexibility, offered benefits, offered, you know, the ability to work from home. That's just part of what our lives are like now. You know, remote work is part of pretty much every job.
What risks should workers consider when switching jobs for higher pay?
So it's not as attractive as it once was. The question of pay is really what's most attractive to people as they're weighing offers.
OK, so there can be financial and other benefits, but are there risks involved in switching jobs just to grab a higher salary?
when you're leaving one job for a new job there's a trade-off you know you're trading off higher pay for some unknowns so you know the new responsibilities at your current job you know the existing work culture you know the existing tasks and duties and how people are weighing your performance and weighing how you're how you're being successful there that's all going to be new at a new place and i think something that a lot of people are thinking about right now is okay do i want to be taking on that risk when we have this possible recession on the horizon.
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Chapters
8 chapters
1
What is the main topic discussed in this episode?
0:00–0:48
2
How much higher are pay bumps for people who switch jobs versus stayers?
0:48–1:12
3
What data source shows the wage-growth gap between job switchers and stayers?
1:12–2:37
4
What non‑pay incentives are employers offering to attract workers?
2:37–3:07
5
What risks should workers consider when switching jobs for higher pay?
3:07–3:59
6
What are the pros and cons of staying at your current job instead of switching?
3:59–5:00
7
How are employers responding to vacancies to retain or lure talent?
5:00–5:53
8
Could rising wages from job switching contribute to broader inflationary pressure?
5:53–6:55
Speakers
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