Switching Jobs Has Increased Salaries at Record Rates

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“Should I stay or should I go?”

If you’ve been asking yourself that question about your current job, the answer might be to jump ship now — at least, if you want to earn more money.

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A new report from the Federal Reserve Bank of Atlanta showed that people who switched jobs earned 6.7% more with the change between July 2021 and July 2022. Those who stayed in their current job saw just a 4.9% raise, the Fed reported.

Another study from the Pew Research Center found that those who switched jobs saw their salary increase by 9.7% from April 2021 to March 2022. And that’s after inflation. Those who stayed in the same place actually suffered a loss of 1.7% after accounting for the record high inflation rates of recent months, CNBC reported.

Workers typically see their earnings rise after they change jobs, but the increase has not been this big — according to the Fed report — since 1997, which was near the start of the dot.com boom.

The Great Resignation (or the Great Reshuffling as it is sometimes called), the ability to work remotely from anywhere and the pandemic — all of which caused people to reexamine their values and priorities — has sparked salary increases as employers try desperately to lure in high quality workers. But these factors may not remain in play forever.

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Job openings recently fell to 10.7 million, the lowest number since September 2021. Meanwhile, quit rates have stabilized at 4.2 million, Bloomberg reported. But employers are still looking to fill a vast number of positions, so employees still have bargaining power.

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Bottom line: If you feel there is something more out there waiting for you, it might be the perfect time to dust off your resume, update your LinkedIn profile and start putting out feelers for a new position with a new company.

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