During the Great Resignation, droves of workers left their jobs in search of better pay and working conditions. Oftentimes, job-sw⭕itchers were successful, notching substantial raises. However, that wage growth may be cooling off. 

“Job changers seem to always have greater real wage growth than job stayers," said Abigail Wozniak, a vice president at the Federal Reserve Bank of Minneapolis, in an interview on July 18. "But those gains were really big in the heat of the initial recovery from the pandemic and that has cooled.”

In Wozniak’s research, she found that real wage gains for job-changers now were lower than they were in 2019. In other words, swiꦿtching jobs now pays ༺less than it did before the pandemic, even when accounting for inflation. 

A report from ADP found job switchers scored pay gains of 7.7% in June, down from 16.4% two years earlier when inflation was at its peak. So what’s changed since the Great Resignation?

The Labor Market Has Cooled Since the Pandemic

As the Fed hiked rates over the past two years in an effort to cool inflation, unemployment ticked up as higher borrowing costs weighed on consumers and corporations. Tech, finance, media and real estate companies laid off tens of thousands of employees.

The job market has slowed, resulting in a labor market that’s more favorable for employers than it is for employees. In June, the unemployment rate was 4.1%, up from 3.6% a year ago.

Now, 澳洲幸运5官方开奖结果体彩网:fewer workers are quitting than they were during the pandemic, likely due to uncertainty about the future economy and job market. In May, the quit rate was 2.2%, down from a high of 3% end of 2021 and early 2022.