Source: Fortune
Summary
According to ADP’s latest data, the job-hopping hack is losing its effectiveness in securing higher pay. The gap between job-stayers and job-hoppers has narrowed, with job-hoppers’ pay growth slowing to 6.4% in January, down from 6.6% in December. The difference in pay growth between switchers and stayers is now just 1.9%. The growth between job-stayers and job-hoppers was highest in sectors with in-demand skills, such as construction and natural resources. In some roles, it actually pays to stick with the same employer, with workers in leisure and hospitality and IT seeing better salaries by staying put.
Our Reading
The numbers tell one story. Job-hopping, once a surefire way to boost salary, is losing its luster. The gap between job-stayers and job-hoppers is narrowing, and in some sectors, it’s actually better to stay put. Construction and natural resources are the only sectors where job-hoppers saw significant pay growth. The labor market is shifting, and the job-hopping hack is no longer the best way to get ahead. The difference in pay growth between switchers and stayers is now just 1.9%, a far cry from the double-digit gains of the past.
It’s a sign that the labor market is entering a new phase, one where employers are no longer desperate for talent and are taking a more cautious approach to hiring and pay. The slow-hire, slow-fire labor market narrative is playing out, and job-hoppers are feeling the pinch.
Author: Evan Null
