[US] Pay premium for job hopping reaches record low

In the US, the job hopping trend gave employees significant pay gains for some time, but new data from ADP has revealed that the pay premium has tapered off, Axios reports.

ADP found that the pay premium for switching jobs today is at its narrowest since 2020, when it began tracking.

According to ADP’s analysis of private employers, median pay increased 4.5 per cent from last year for those remaining with their employer. For job hoppers, the pay bump was reportedly 6.4 per cent.

The benefit of job hopping seemingly peaked in April 2022 - at the time of the “Great Resignation” - when employees saw median raises of 16 per cent.

The pay premium varies by industry, with the data finding that workers in construction, mining and finance had wider premiums.

ADP’s data only considered the private sector, and Axios noted that it might be overstating the pay premium for job switching.

A separate measure from the Atlanta Fed, which tracks the three-month moving average of hourly median wage growth, reportedly showed that the premium has virtually vanished.

The increase for job ‘stayers’ was 3.5 per cent compared with 4 per cent for those who switched, according to the wage growth tracker.

Source: Axios

(Link via original reporting)

In the US, the job hopping trend gave employees significant pay gains for some time, but new data from ADP has revealed that the pay premium has tapered off, Axios reports.

ADP found that the pay premium for switching jobs today is at its narrowest since 2020, when it began tracking.

According to ADP’s analysis of private employers, median pay increased 4.5 per cent from last year for those remaining with their employer. For job hoppers, the pay bump was reportedly 6.4 per cent.

The benefit of job hopping seemingly peaked in April 2022 - at the time of the “Great Resignation” - when employees saw median raises of 16 per cent.

The pay premium varies by industry, with the data finding that workers in construction, mining and finance had wider premiums.

ADP’s data only considered the private sector, and Axios noted that it might be overstating the pay premium for job switching.

A separate measure from the Atlanta Fed, which tracks the three-month moving average of hourly median wage growth, reportedly showed that the premium has virtually vanished.

The increase for job ‘stayers’ was 3.5 per cent compared with 4 per cent for those who switched, according to the wage growth tracker.

Source: Axios

(Link via original reporting)