If you’re looking to make extra cash, you may want to consider a career change. About 24% of Americans think that switching jobs is the most effective way to boost income, according to a recent online survey from MagnifyMoney. Millennials were the most likely to say that changing jobs is the best way to increase their paycheck.
Per CNBC, wage data also supports this idea: wage gains for those who have jumped to a new position surpassed those who stayed with the same employer since 2011, according to the Atlanta Federal Reserve Bank’s wage growth tracker. In June, the 12-month average of wage gains for those who changed positions was 3.8% while those who remained in place only saw 3.1% wage growth. In September, increases jumped to 4.3% for those who switched jobs and increased slightly to 3.2% for those who stayed put.
Nearly 4.4 million workers quit their jobs in September according to the Labor Department, a record high.
“This is usually the case outside of the current environment,” Brett Ryan, senior U.S. economist at Deutsche Bank, told CNBC. “Job switchers do well — you’re not going to move unless you’re getting paid more.”
Don’t swap jobs just yet, necessarily
However, changing jobs too often may not be the best course of action.
“The truth is, you might be able to make more money if you change jobs,” says MagnifyMoney senior content director Ismat Mangla. “You don’t necessarily want to job hop too often, but you’re more likely to get bigger salary increases if you leave your current job for another one. That’s when you can negotiate big jumps in income, like 10% to 20%.”
Although workers are taking note of rising wages, increased pay doesn’t apply to every sector. Approximately 44% of survey respondents also said that the best way to get a raise is via excellent job performance, according to MagnifyMoney.
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