Why job hopping might no longer pay

Data: BLS, Federal Reserve Bank of Atlanta via Bank of America Institute; Chart: Axios VisualsFor years, job hopping was the surest path to a hefty raise.Not anymore — now, pay raises for those who switch employers are the same as for those who stick around. Why it matters: The slowing job market — particularly for professionals — is giving employers the upper hand on pay, a new Bank of America Institute report points out."The balance of power is shifting back towards firms that are hiring," the report states. There's also been a tariff-related pullback, with employers pressing pause on hiring.How it works: Switching jobs is defined as having a different occupation from a year ago, or changing one's employer or job duties in the past three months.By the numbers: The switchers saw a 4.3% average wage increase in July — the same as for those who stayed put, per government data cited in the report.The big picture: Since 2010, job switchers always had the pay raise edge over the loyal job stayers. The gap between the two surged during the so-called Great Resignation, when the labor market boomed and job hopping was prevalent.Yes, but: Internal data from Bank of America, which looks at a narrower dataset, found that that the median pay raise for a job mover was 7% — higher than the federal data indicated.Still, at the height of the Great Resignation in 2022, raises exceeded 20%, per the BofA data.The bottom line: As The Economist recently mused, it may be time to log off LinkedIn and focus on impressing the higher-ups.Go deeper: With labor market weak, employees are "job hugging"

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