Job-hopping got workers an 18% raise in 2022. Now it’s 8%—and Gen Z is hurt the most

For decades, job-hopping was one of the surest ways to climb the career ladder and boost your earning potential. But just as Gen Z settles into adulthood, that payoff has shrunk dramatically.

Workers are quitting at some of the lowest rates in years. Only 1.9% of nonfarm employees quit their jobs in August, according to the Bureau of Labor Statistics, keeping the quits rate near its lowest level since 2020. Data from the Bank of America Institute also shows the few who do move aren’t seeing the same financial rewards workers enjoyed just a few years ago.

In 2022, the typical job switcher saw their after-tax pay jump nearly 18% in a single year, compared with a 7% raise for workers who stayed with their employer, according to the Bank of America Institute’s analysis of its customers’ deposit data. By the first quarter of 2026, switchers’ pay was growing just 8%, compared with 5% for those who stayed put—the smallest gap between the two groups in seven years.

The shrinking premium is especially notable given new research from the National Bureau of Economic Research suggesting a varied résumé matters more than ever for those aiming for the top job. Today’s newly appointed CEOs have roughly 10 more years of experience outside the company they eventually lead than their counterparts did in 2000, according to the working paper, which attributes the shift to rising demand for “generalist........

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