Job switchers widen pay advantage as labour mobility stays low
ADP data shows faster base and gross pay growth for private-sector job changers in August, while Atlanta Fed figures point to a growing premium for workers who move.
Private-sector workers who changed jobs recorded stronger pay growth than those who stayed put in August, according to payroll provider ADP, although the premium has yet to translate into a broader increase in job switching.
Base pay for job changers rose 4.7% year over year, compared with 3% for job stayers. On a gross-pay basis, including tips, commissions and bonuses, growth reached 7.3% for changers, against 4.4% for stayers.
Separate Atlanta Fed data showed median pay growth for job switchers rising to 5% in August from 4.4% in July. The average increase for workers who stayed in their jobs was 3.6%, unchanged from July. The measures use different definitions and are not directly comparable.
Construction recorded the strongest pay gains for switchers, as employers sought workers they were struggling to find. Leisure and hospitality was the only sector tracked by ADP where gross-pay growth for job changers was lower than for stayers.
Despite the widening pay premium, job mobility remained low and no corresponding increase in quits was reported. Bank of America Institute data also pointed to stronger gains among hourly workers paid weekly and Gen Z employees.
Pay is only one factor in a job move. Culture, management, flexibility, benefits, growth opportunities, commuting and the nature of the work can also influence the decision, while a successful move may reset a worker’s market value and future compensation baseline.
