Job hopping isn’t paying like it did in past

Switching work has always been a good way for job seekers to increase their pay, but now it is not the case.

Changing jobs isn’t paying well, with the salary gap between job stayers and switchers shrinking to its lowest in 10 years, according to recent federal data.

In the past two months, job stayers saw a 4.6% wage increase versus 4.8% for switchers, down from a 5.5% and 7.7% respective advantage in early 2023.

Economists say that though the US is not in a recession, companies are tightening budgets; even employees aren’t leaving their jobs. Organizations have low job offers and lesser pay hikes.

Several job hunters state there is very little room for salary negotiations.

Who is affected?
Tech workers, who were once able to jump jobs for big raises, are now seeing pay cuts. In late 2024, median salaries for software engineers, product designers and technical program managers dropped between 1% and 2%, according to Levels.fyi data. 

Senior and midlevel tech leaders faced even steeper declines of $10,000 to $40,000, while AI managers saw $10,000 to $20,000 pay cuts.

Even internal job shifts come with “dry promotion,” where there is more responsibility but no raise.

The finance sector seems to flourish, with senior professionals still securing higher pay. However, analysts warn that Wall Street’s hiring trends can shift fast.