By Arlenys Tabare
Faced with a tight labor market with large waves of layoffs and a reduced hiring rate, many will wonder whether or not it is a good time to change jobs and if doing so could represent greater salary benefits.
Although the fear of becoming unemployed has increased in recent years due to economic uncertainty, A report from Bank of America revealed that it could be a good opportunity for younger generations.
According to a survey developed by the banking institution, Generation Z had salary growth four times greater than that of other generationsFor example, millennials, whose salaries only doubled when they changed jobs.
Analysts highlighted in the report that “If the labor market continues to recover, we could see an increase in the wage premium for changing jobs, especially considering that it is currently negative than what existed before the pandemic,” they said, while adding that the increases would be even smaller than those that occurred during the “Great Resignation.”
On the other hand, in the Bank of The United States report it was known that the tendency to change jobs occurs mainly in the younger generations, since it is profitable for them compared to others. According to the entity, In the first three months of this year, one in four people belonging to Gen Z changed jobs; This is 10% more than millennials and more than 30% than dinky one boomers.
For its part, Generation X or the dinky one boomers tend to keep their jobs longer, since those who changed jobs received little or no salary increase, unlike those who remained in their jobs.
Finally, the analysis highlighted that people who lost their jobs in the face of a more competitive labor market settled for lower salaries. “It could also be because, in an environment of low hiring and layoffs, “Companies feel they have less reason to pay higher wages to those who change jobs,” says Bank of The United States.
Keep reading:
- Wages in the US are below inflation: what does this mean?
- Young Americans feel more pessimistic about the job market, survey finds
- Manmade intelligence caused more than 21,000 layoffs in April and not by replacing workers
- Job offers and hiring in the US were maintained before the impact of the war
