The job-hopping pay bump is gone

Taking recruiter calls within the workplace parking zone on the down-low is now not among the many most profitable issues you are able to do at work. The median pay bump notched by these switching jobs shrunk to 4.8% final month from a peak of seven.7% in early 2023, in keeping with lately launched information from the Atlanta Fed.

Which means the premium for ditching your present employer over staying put has all however disappeared for the reason that red-hot job market of 2022 and 2023.

• In February 2023, a job-ditcher received a median 7.7% increase over the yr, in comparison with a 5.6% pay bump for somebody staying put.
• Final month, those that remained of their jobs acquired a 4.6% annual increase, simply .2% underneath somebody posting about “an exciting new chapter” on LinkedIn.

Assist not so needed

Job-hopping ceasing to be a surefire technique to enter a brand new tax bracket is an indication of a cooling economic system wherein employers are now not on the poaching prowl.

It’s been additional tough on tech: Memes about $800k tech salaries and in-office again rubs are quickly changing into so 2022. After layoffs swept by means of the trade in 2024, and software program growth vacancies hit a 5-year low final month, many tech job seekers are settling for pay cuts, in keeping with the Wall Road Journal.

• Folks making use of for senior tech roles have been hit the toughest as many corporations have slashed their supervisor headcount.
• In the meantime, solely 45% of tech employees received a increase final yr, in comparison with 55% in 2023, in keeping with the job board Cube.

However some job hoppers in different industries are nonetheless cashing in. The WSJ reviews that skilled banking execs becoming a member of a brand new financial institution are getting document pay premiums, because the trade scored unprecedented earnings final yr.

Huge image: Fewer persons are taking the leap towards a brand new employer. Lower than 2.2% of employees switched jobs final month in comparison with 2.6% in June 2022, per authorities information.—SK