Summary
A new report shows that pay increases for people who switch jobs are now similar to those for employees who stay in the same job. This change is due to a slowing job market, which gives employers more control over salaries.
Key Facts
- People who change jobs now receive an average wage increase of 4.3%, similar to those who stay in their jobs.
- Historically, job switchers received bigger pay raises than those who stayed put.
- During the Great Resignation, job switchers saw large pay increases, sometimes over 20%.
- Employers are hiring less due to a slower job market and effects related to tariffs.
- The power to set salaries is shifting back to employers rather than employees seeking new positions.
- Bank of America's internal data shows job movers received a median pay raise of 7%.
