Job "switchers" typically see their wages grow at a faster rate than workers who stay in their current roles

ob switchers are experiencing significantly smaller pay raises than they did during the 2021-2023 period, with recent data showing raises for job switchers and job stayers are nearly identical (around 4.6% vs. 4.8% in early 2025). The "job switcher premium," the advantage job switchers had over those who stayed, has shrunk due to cooling labor demand and a drop in the rate of new hires and job openings. While the economic climate shifted the market dynamics, workers in some fields, like finance, may still find opportunities for larger salary bumps, but the overall market trend shows decreased leverage for job switchers and a rise in the preference for job stability. The "Switcher Premium" and Why It's Shrinking

• Historically, changing jobs was a top strategy for significant salary increases.During the post-2020 period, high demand for talent and a flood of job openings gave job seekers a powerful bargaining position. 
• Economic cooling has reduced this advantage.A significant decrease in the rate of job openings and new hires has led to less aggressive hiring by employers, diminishing job switchers' ability to command larger salaries. 
• The pay gap is narrowing drastically.The difference in wage growth between job switchers and those who stay put has fallen to a 10-year low, with recent figures showing minimal difference in pay raises for each group. 

Industry-Specific Trends 

• Technology has been particularly affected.Tech employees have faced declining median compensations and promotions without pay increases, a sharp contrast to the high growth period of the pandemic.
• Finance offers a potential bright spot.Executive recruiters have reported more aggressive hiring and competition among large banks, providing opportunities for senior-level candidates to command higher salaries when changing jobs.