Local NewsThe Great Resignation worked: Most job-swappers got a raise

The Great Resignation worked: Most job-swappers got a raise

-

- Advertisment -

For the majority of people who quit their job in search of higher pay elsewhere, the wager paid off.

Even as inflation soared, 60% of those who quit between April 2021 and March 2022 realized real wage gains, according to a new report by the Pew Research Center. Less than half of workers who remained loyal to their employers can say the same.

The so-called Great Resignation has brought massive upheaval in the labor market, with quit rates at highs possibly not seen since the 1970s. An average of 4 million workers quit each month from January to March this year, for an annual turnover rate of nearly 50 million workers — about 30% of the workforce — according to Pew’s analysis, which assumes workers don’t change jobs more than once a year.

The report analyzed data from the US Census Bureau, Bureau of Labor Statistics and a survey of about 6,000 American adults conducted in June and July of this year.

As employers have struggled to cope with chronic staffing shortages brought on by rapid turnover, most workers who quit did not immediately jump into a new job. For those who quit this year from January to March, two-thirds were not with a new employer the following month. Instead, almost half left the labor force, while another 18% remained unemployed.

Women who quit were more likely than men to take a break from the labor force, according to the research. Men with children were the least likely to do the same.

The window of opportunity for potential job-switchers may be closing. With fears of recession mounting, many considering a change may stay put for fear that a new, higher-paying gig may be more difficult to get. According to the report, about 20% of workers say they’re likely to look for a new job in the next six months, though nearly 40% say they think landing one will be difficult.

Those with the least sense of stability are more inclined to move, according to Pew, with 45% of those with little job security likely to look for work elsewhere, relative to just 14% of workers who feel most secure.

Almost 30% of workers who are financially insecure are likely to consider a change, nearly twice as many who are financially stable.

On Friday, an inflation gauge closely watched by the Federal Reserve, the so-called employment cost index — indicated that paychecks are still growing at a robust pace.

Employees’ wages, excluding government workers, jumped 1.6% in the April-June quarter, matching a record high reached last fall.

— Jo Constantz / Bloomberg News

FILE - Marriott human resources recruiter Mariela Cuevas, left, talks to Lisbet Oliveros, during a job fair at Hard Rock Stadium, Friday, Sept. 3, 2021, in Miami Gardens, Fla. Last month, U.S. employers might have shed jobs for the first time in about a year, potentially raising alarms about the economy's trajectory. Yet even if the January employment report coming Friday, Feb. 3, 2022, were to show a deep loss of jobs, there would be little mystery about the likely culprit: A wave of omicron wave of infections that led millions of workers to stay home sick, discouraged consumers from venturing out to spend and likely froze hiring at many companies ??

Latest news

Labor Day Events in Boston for 2022: Enjoy the long weekend with this list of fun things to do & activities!

Labor Day events in Boston | Image credit: Marlborough Labor Day Parade Labor day is oh so near! And...

MBTA GM says buses to blame for rushed Orange Line closure

As students return to school and fall schedules begin to ramp up, MBTA General Manager Steve Poftak defended the...

New Celtic Danilo Gallinari suffers meniscus tear

The Celtics were resting a tad easier by Sunday afternoon after an MRI taken of Danilo Gallinari’s sore left...

Warmer Weather Next Few Days

7Weather- It’s a warm start to the week with highs close to 90º. Just wait a few days if...
- Advertisement -

See you in November: License law opponents celebrate signature threshold

Opponents of the state’s new immigrant license law say they have collected nearly twice the number of signatures required...

Occupy movement symbol Dorli Rainey dies at 95

Dorli Rainey, a self-described “old lady in combat boots” who became a symbol of the Occupy protest movement when...

Must read

MBTA GM says buses to blame for rushed Orange Line closure

As students return to school and fall schedules begin...
- Advertisement -

You might also likeRELATED
Recommended to you