Bank of America data shows workers who changed jobs saw after-tax wage growth of 8%, outpacing the 5% gain for those who remained.
Workers who switched jobs in the first quarter experienced after-tax wage growth of 8%, compared to 5% for those who stayed with their employers, according to recent data. The gap, though the smallest in seven years, signals a gradual improvement in labor market conditions.
During the 2022 labor shortage, job switchers secured nearly 18% pay increases, while non-switchers saw just 7% growth. The current premium remains below pre-pandemic levels, but analysts suggest further labor market recovery could widen the gap.
Millennials and Gen Z benefited most from job-hopping, with earnings growth rates doubling and quadrupling, respectively, compared to those who stayed put.