The decline in wage increases for job switchers and stayers marks a notable shift from the post-pandemic era. Job switchers' median wage growth fell to 4.2% in February from 7.3% at the start of 2023, while job stayers saw a decrease from 5.8% to 4.4%. Analysts attribute this wage slow down to the cooling of the Great Resignation, where soaring post-pandemic job quits and labor shortages had previously resulted in stronger wage growth. Reduced job offers and competition have weakened employees' bargaining power, making them hesitant to switch jobs.
Switching jobs was once a surefire way to get a big raise, but federal data suggest that's no longer the case.
The median pay increase for job switchers fell to 4.2% in February, a sharp decline from 7.3% in early 2023.
Labor market analysts attribute the wage downturn to the cooling of the Great Resignation - the post-pandemic wave of record job quits and a labor shortage that drove up wages.
Workers enjoyed significant wage premiums during the Great Resignation because employers needed to offer substantial raises to attract talent.
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