Pay is back on the rise for job switchers, even in low-hire job market

Base pay for job changers in the private sector rose 4.7% in August, compared to 3% for job stayers, according to ADP. Gross pay, which includes tips, commissions, and bonuses, jumped more for job stayers: 4.4% year over year, versus 7.3% for job changers. Median pay for workers who switched jobs increased to 5% last month, up from 4.4% in July.

Average pay for job stayers remained at 3.6%, unchanged from July. ADP chief economist Nela Richardson noted that wage opportunities exist even in this low-hire market. Construction workers are seeing the highest pay increases, while leisure and hospitality pays less for job changers. Workers paid hourly and receiving weekly paychecks are getting the biggest pay boosts, along with Gen Z workers.

The pay incentive to switch jobs is strengthening, especially among small businesses, due to a shortage of qualified applicants. While the pay incentive to job-hop is growing, many workers are still not shifting jobs. While job market sentiment is improving, many are still hesitant to make the leap for a higher-paying opportunity.