Great resignation continues: Job Growth Exceeds Projections Amidst the Great Resignation
Great resignation continues: The latest data indicating a surprising surge in job additions, surpassing projections and defying expectations during the ongoing Great Resignation. Gain insights into the factors behind the declining number of workers switching jobs for better pay and how varying income brackets experience these shifts.
In a striking revelation, the Labor Department’s most recent report unveils a remarkable upswing in job additions, defying projections amidst the ongoing Great Resignation. The United States saw a staggering 339,000 jobs added last month, surpassing estimates by nearly 150,000 jobs. This unexpected surge comes at a time when the labor market is grappling with the far-reaching impacts of the pandemic. However, as the economy stabilizes, indications of a slowdown are gradually emerging.
Previously conducted research sheds light on pre-pandemic trends, where individuals frequently encountered a 10% pay increase when transitioning to new employers. However, during the peak of the Great Resignation, marked by a mass exodus of workers from their jobs, these raises skyrocketed to 20%. Yet, recent data, specifically as of April 23, reveals that these increases have now settled around the 13% mark, reflecting a leveling off.
CBS Money Watch Editor, provides valuable insights into the underlying factors contributing to this shifting landscape. She explains that the overall job market is cooling off, and the anticipated fervent raises witnessed during the pandemic are yet to materialize. The rate at which people are leaving their jobs for any reason has almost returned to pre-pandemic levels. Consequently, the once prevalent bonuses and raises tied to job switches have declined, albeit not to pre-pandemic levels. This change can be attributed to various factors, including the subsiding inflation rates and a diminished demand for new employees as employers recalibrate their hiring strategies.
Great resignation continues: Job Growth Exceeds Projections
Interestingly, when analyzing the impact of job switching on different income brackets, significant disparities emerge. The sharpest decline in pay raises is witnessed among those earning six-figure salaries. During the pandemic, they experienced raises exceeding 10%, which have now dwindled to approximately 7%. Conversely, individuals earning $25,000 or less per year have managed to sustain pay raises for job switching at levels nearly matching those seen during the pandemic, reaching around 35%. This divergence highlights the divergent paths of various income groups during this transformative period.
Many of the labour rights we take for granted today were first established by labour standards agreed at the ILC 👇
⏰ 8-hour working day
👷 Safety and health at work
🤰 Maternity leave
🕵🏻♀️ Minimum working age
And also the ones that we love most:
😴 Weekend and vacation time!— International Labour Organization (@ilo) June 2, 2023
For those seeking a pay increase, adopting a proactive approach becomes imperative. Merely hoping for a raise to materialize without taking any action is unlikely to yield desired outcomes, as companies seldom offer raises proactively. Instead, it is essential to initiate conversations with employers and assertively request a raise. The data unequivocally demonstrates that job switching remains a viable strategy for significant pay increases. Job hoppers consistently achieve raises approximately 20% higher than their counterparts who choose to stay in their current roles. Although the gap has slightly narrowed compared to pre-pandemic times, the advantages of job hopping remain substantial.
It is worth considering the impact of layoffs in high-paying industries, particularly among individuals earning six-figure salaries. The slowdown in the white-collar job market, coupled with prominent layoffs that have made headlines, may have instilled a sense of caution among professionals, making them less inclined to seek new employment opportunities. Simultaneously, this hesitancy may have influenced employers, rendering them more cautious about expanding their workforce.
As the dynamics of the job market continue to evolve, adaptability and staying informed are key. While the intensity of pay raises witnessed during the pandemic has tapered off, avenues for advancement still exist for those willing to explore new opportunities. Understanding the shifting trends, the influence of inflation, and
the varying experiences across income brackets empowers individuals to make informed decisions regarding their professional journeys in these uncertain times.
