Should I Stay or Should I Go? (Hint: One Makes More Money)

I recently posted that now is a good time to change jobs since the economic outlook is not great. In fact, the best case scenario for the US economy is to avoid a recession. (See NYT article The Big Economic Question: It is not whether the U.S. is in a recession. It’s whether the economy will soon worsen.)

More evidence you should move now? WSJ reported this week that job switchers make more than those who stay. Key points from the article to help you decide:

• People who stayed put the last three months increased wages by 4.7%, but those who changed jobs increased by 6.4%, the largest gap in 20 years.
• The job market “remains strong”: 372,000 jobs were added in June, and the number of job switchers “has consistently been elevated” for 1 ½ years.
• But this “record hiring streak” may turn. Economists are watching interest rates, inflation, market selloff and recession risks.
• In this market, employers understand they have to pay more than in the past and have to move quicker. (Confirmed, that’s my daily conversation with clients.)
• Take into account the benefits of staying: “security, consistency and the potential for future advancement to leadership positions.”

If you want to make a change, I would do it now. But also compare the potential upsides and downsides faced by your current employer against future employer’s, and consider your personal risk tolerance and financial runway.