12 Recent Indicators That Switching Jobs Is No Longer the Easy Way To Higher Pay

Shortly after the pandemic threw a wrench into workplace norms, many employees found they were able to get ahead financially by switching jobs. Job hopping was the norm, and workers had strong negotiating power, but this is not the case any longer.

More now than ever, workers are hesitant to leave their employers. Here are 12 signs and statistics that show switching jobs is no longer the key to a salary hike.

For the first time since 2018, wage increases for job hoppers fell below that of workers who stayed in their roles, according to the Federal Reserve Bank of Atlanta's wage growth tracker.

In February 2025, wages were up 4.2% for job switchers and 4.4% for those who stayed in their roles. Back in early 2023, the median pay increase for job switchers was 7.3%, and in July 2022, those who switched jobs earned 2.6% more than those who stayed.

Even though March saw 140,000 more jobs added than expected, hiring has slowed. According to the Wall Street Journal, the share of workers hired into new jobs every month was 4.4% in 2021. This number dropped to 3.5% in 2024.

Analysts also say the labor market is heading for an unstable period. This could mean it will be harder for those hoping to jump ship to get hired elsewhere.

Data from the Bureau of Labor Statistics (BLS) show that there were significantly fewer job openings in February 2025 than in the previous year. Openings were down by almost 900,000, and this could mean potential employers have less incentive to raise wages.

While there wasn't much change in the number of job openings compared to January, the yearly change indicates the post-pandemic job seeker market may be no more.

BLS data also show that the number of people leaving their jobs was down over the year. About 273,000 fewer Americans quit their jobs in February 2025 than in the year prior.

While there were some industries, like state and local government education, where the rate of employees quitting increased, a decrease in quit rates can lead to lower wage growth and pay raises, too.

Unemployment rates have remained stagnant for about a year now. The BLS currently projects a rate of 4.2%, with about 7.1 million Americans unemployed in March.

Approximately 21.3% of those individuals are considered "long-term unemployed," which means they've been out of work for 27 weeks or more. Knowing there's a steady stream of people actively looking for work could be a deterrent for would-be job hoppers. Potential employers may be less willing to offer higher pay with a wider pool of applicants available.

While the unemployment rate has remained static for about a year, recent news about government and tech layoffs has affected how Americans feel about the job market. Many expect the unemployment rate to spike, potentially flooding the market with job seekers.

Data analyzed by the Bank of America Institute show the share of consumers who expect the unemployment rate to rise was up to 66% — that's the highest level in a decade.

Job seekers are losing their confidence in their ability to find a job quickly, with ZipRecruiter reporting that their Job Seeker Confidence index fell 3.6 points in the first quarter of 2025. Amid mass layoffs and reorganization plans, government workers had the steepest decline in confidence index levels, the data show.

As a result, applicants may be more likely to accept a lower salary or negotiate a higher pay.

Compared to the final quarter of 2024, people were being recruited for jobs far less frequently in the first few months of 2025.

According to ZipRecruiter's New Hires Survey, about 35% of new hires said they were actively recruited. This is down quite a bit from the 53% who reported they were pursued at the end of 2024.

At the end of 2024, ZipRecruiter's data found that 49% of new hires reported being able to negotiate their salaries. That number has since dropped to 31%.

If salary negotiation is off the table for more job seekers, the likelihood that you'll be able to land a job that pays better than your current gig slips with it.

ZipRecruiter's data also shows that the number of new hires getting sign-on bonuses plummeted as well. That's not great news for those looking to secure big pay hikes elsewhere.

At the end of 2024, the number of new hires reporting sign-on bonuses was 43%. That dropped to just 20% in the first quarter of this year.

Recent trends indicate that more people than ever before are holding down more than one job as job hopping becomes less lucrative. The trend could be a sign of a rocky job market moving forward, as many Americans feel they can't make ends meet on just one salary.

The Labor Department reported that more than 9 million people had at least two jobs in February 2025, a 7.4% increase from the previous year.

Jobs and industries that were previously thought of as golden tickets to wealth aren't coming with the job security or pay packages they once did.

Anecdotally, you'll find many reports online of big tech slashing salaries or conducting mass layoffs. Levels.fyi reported that even software engineers, product designers, and technical program managers saw their wages decline by 1-2% in the second half of 2024.

It's natural to consider looking for a new job or career path if it seems like there may be an opportunity for a salary bump and a chance to lower your financial stress.

However, recent data indicate that it may pay more to stay put and attempt to negotiate a better salary at your current gig — at least for the time being.