The pay difference between those who stay and those who changed jobs is growing, according to the Federal Reserve Bank of Atlanta. Job stayers, or people who stayed in their job for the past three months, increased their wages by about 4.7% as of June 2022. Meanwhile, those who switched jobs received a raise of 6.4%. The gap is the largest in two decades.
Workers are facing fast-rising prices on gas, groceries, rent and other essentials. Even in a tight labor market, many workers aren’t getting a large enough pay increase at their current job to keep up with inflation, say workers and economists who study the labor market. As a result, some Americans are reconsidering expenses they once considered affordable, while many also are looking for a new job with a bigger paycheck to keep up.
Prof. Yongseok Shin, an economics professor at Washington University in St. Louis, says inflation and the ability to get higher wages by changing companies are pushing many to move on. Some 47 million Americans have changed jobs in the past year, according to the Bureau of Labor Statistics. “I think the workers are paying a lot more attention,” said Prof. Shin. “They are comparing their wage growth with the headline inflation numbers.”
Author(s): Julia Carpenter
Publication Date: 25 Jul 2022
Publication Site: WSJ