As the COVID-19 pandemic has led to lots of shifts and swings in the labor market alongside with economic growth, switching to a different job has emerged as a great way to make more money.
It is even the best way to achieve that, according to 24% of Americans, shows an online survey of close to 1,000 employed adults across the nation conducted by MagnifyMoney.
The same survey also discovered that millennials are the group that is the most likely to declare that switching jobs is the best way to make more cash.
The same conclusion is also supported by the wage growth tracker of the Atlanta Federal Reserve Bank, which is based on data from the US Labor Statistics Bureau.
It shows higher earnings for those who have changed jobs since 2011 compared with those who have remained with the same employer.
The data shows that in June, switchers saw an average wage gain of 3.8% over a 12-month period vs. 3.1% growth for stayers.
In September, the figures were 4.3% and 3.2% respectively.
Shifts in higher-paying as well as lower-paying job sectors
According to a study by Indeed, a job site, higher-paying jobs including IT and help desk, civil engineering, software development, and media and communications have seen increased interest by job-seekers since February 2020.
Interest towards positions that entail lower wages and being there in person has gone down.
These include cooking and food service, child care, personal care and health care, and stocking and loading.
The fact that higher paying sectors attract interest while a number of employees from lower paying ones are re-orienting themselves towards them means that the stayers in the latter can get better pay as employers are plagued with labor shortages.
Despite the numerous tectonic shifts in employment brought about by the coronavirus pandemic, it’s essential not stress that there might substantial differences among the different work sectors when it comes to the potential to make more by switching jobs.
Thus, the highest potential for higher salaries right now is in those sectors that usually pay less but have been hit by labor shortages – such as child care, food services, and other in-person essential jobs.
Remain and still make more?
However, apart from being an incentive to change jobs, this situation also means that workers can remain at their present job but still get higher pay by using the shortages as a leverage to sustain their demands for the employer.
Top performers and just any reliable and valuable cadres should definitely consider trying to negotiate a raise with the management.
Back to the MagnifyMoney survey cited above: 44% of the responders said stellar job performance is the best way to receive a pay raise – without switching jobs.
In any case, however, the current labor market situation appears to be particularly favorable to lots of categories of workers who may be able to find a job where they will be appreciated just as they deserve.
At the same time, however, there are some potential pitfalls to be aware of before actually making a move.
Namely, the fact that, with many workers seeking to take advantage of the great resignation, some sectors of the economy might end up being extra competitive to get a job.
Nevertheless, with so many employment opportunities abounding, trying to boost your earnings either by changing jobs – or by seeking to renegotiate your pay with your current employer if you happen to be in a sector plagued with labor shortages.