Changing jobs has become a lucrative move – and Gen Z have got the memo.
Pay rises for job switchers have reached a three-year high, according to July data from a Bank of America study published Wednesday.
Job switchers saw a 15 percent pay increase – compared to a 4 percent increase for those who stayed put.
“Gen Z continue to benefit the most from changing jobs, while workers paid by the hour are also making particularly large gains from switching,” the study said.
Adults, aged 18 to 30, who changed jobs saw their pay go up nearly 20 percent in July. Boomers (aged 62 to 80) saw the smallest pay increase from switching jobs, according to the study.
open image in galleryPresident Donald Trump’s One Big Beautiful Bill Act may be fueling the raises, the study found. The legislation removed overtime tax, a change that could be fueling lower-income wage growth.
Gen Z is seeing the biggest impact because they’re early in their careers and pay is relatively low, “creating substantial percentage increases when they switch jobs,” the study said.
Getting a pay rise couldn’t come at a better time for a lot of Americans. The past six months have been a patchwork of trade-offs and cutbacks for consumers due to increased cost of living. Inflation remains above 3 percent and gas prices persist above $4 a gallon, linked to the Trump administration’s war with Iran.
open image in galleryEven a $200 or $300 monthly wage increase from a job switch can provide much-needed breathing room.
Some 39 percent of consumers have less than $50 left at the end of the month, and another 35 percent have nothing left over, according to a June study from financial services firm Self found.