Switching jobs no longer produces the double-digit percentage pay bump it did a few years ago, but workers who move are still typically better off than those who stay.
The exception is the top 5% of earners, who often benefit more from staying put.
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According to a new Bank of America report, workers who switched jobs in the first quarter of 2026 netted median wage increases of 8% year over year. That beats the 5% year-over-year wage increase observed in so-called "job stayers," although the gap between the two groups has narrowed to its smallest level in seven years.
In 2026, employers are not under extreme pressure to offer higher wages to attract talent. Joe Wadford, an economist at Bank of America and the report's author, described it as a "low-hire, low-fire" environment. The lower rate of turnover means there's "less reason to pay a premium to job switchers," he wrote.
Among top earners (the highest-paid 5%), the wage increase for job stayers was nearly 10%, while job switchers improved their wages by less than 2%, according to the report.
"For this group, it appears that loyalty pays," Wadford wrote.
That's flipped for all other income groups, with job switchers earning more than job stayers.
Job switching can pay off, but it has become less guaranteed
The typical pay bump for switching jobs can say a lot about the labor market. The best year to switch jobs in recent history was 2022, at the height of the pandemic-era labor shortage. Back then, job switchers secured 18% wage increases, while job stayers received 7% raises, according to the report.
Often referred to as the Great Resignation, the period from 2021 to 2023 saw workers jump ship for better opportunities as employers improved offers to fill their desired head counts and staff shifts.
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It's unclear if the trend of changing gigs for higher pay will make a comeback. According to Bank of America, job switching has inched up in the past year, with 13.5% of workers switching jobs in the first quarter of 2026, up from 12.9% a year ago.
As far as age, young workers are benefitting most from changing companies. "Millennials who moved to another company saw after-tax wages grow twice as fast compared to those who stood still, while the rate of earnings growth increased fourfold for Gen Z," the report said. "Still, this rate has slowed some in the past four years alongside the broader labor market slowdown."
In April, the unemployment rate was 4.3%, up from a record low 3.4% in January 2023.
Consumer price index (CPI) data for April also revealed that inflation is outpacing wage growth for the first time in three years. Switching jobs isn't the "hack" for making more money that it once was. However, if the cost-of-living is chipping into your budget and your employer isn't rewarding your hard work, the latest data suggests that it could be worthwhile to brush up your resume and see what opportunities are out there in your area and field.
