The Blubber

Workers who stayed in their current roles saw a 4.6% wage increase in January and February, while those who changed jobs received a slightly higher boost of 4.8%, according to new data from the Federal Reserve Bank of Atlanta.

The financial edge of job-hopping is shrinking: the wage gap between job stayers and switchers is now at its narrowest in a decade.

Just two years ago, job switchers saw average raises of 7.7%, compared to 5.5% for those who remained with the same employer.

This shift may come as a surprise to many professionals who have long heard that changing jobs is the fastest path to a higher salary. But several factors have contributed to the changing landscape: uncertainty in the white-collar job market has made workers hesitant to move, while increased competition and reduced hiring have limited opportunities. At the same time, workers are facing “salary deflation,” where the same role at another company may come with lower pay, and wage growth has slowed in sectors like tech.

Leaders at companies such as Cisco, Walmart, and Disney emphasize that staying put can still offer long-term rewards.

In the past, Gen X and baby boomers were encouraged to remain with one company for the long haul, with the promise of pensions and career advancement. But as those benefits have diminished, changing jobs became a more common route to higher pay.

Roughly 75% of employees now leave their job before being promoted, according to payroll data from ADP. Gen Z workers, in particular, have embraced this trend — 83% described themselves as “job-hoppers” in a 2023 ResumeLab survey. It’s been paying off: an H&R Block study found nearly one-third of Gen Z workers changed jobs in 2023, with 35% doing so specifically for better pay.

Despite widespread acceptance of frequent job changes — 41% of workers say switching every two to three years is fine, and 56% of Gen Z agree, according to 2024 data from Resume Genius — many executives still believe that long-term loyalty brings the greatest rewards.

Sarah Walker, the new U.K. chief at Cisco, told Fortune her 25-year journey at the company proved worthwhile.

“You just need to be patient in the journey,” she said. “As a society, we’ve moved toward expecting everything instantly, and that shapes how people view career progress. There’s pressure to believe, ‘If I’m not promoted within a year, I must be on the wrong path — maybe I should go somewhere else to move up faster.’”