Tens of millions of Americans switched jobs during the past couple of years, lured by big pay raises and abundant job opportunities – a trend that economists dubbed the "Great Resignation." But that may finally be coming to an end as the labor market settles into what Bank of America economists are now calling the "Great Hesitation." Job hoppers appear to be taking a pause, according to a new report published by the Bank of America Institute that is based on internal data.
An unprecedented number of workers left their jobs in 2021 and 2022 as the extremely tight labor market allowed many individuals to seek better wages, working conditions and hours. Switching jobs proved to be a lucrative move for many Americans during that time period. Workers who changed jobs in July 2022 – at the height of the Great Resignation – received an 8.5% annual pay raise, which compares to the 6.
It’s notable that this figure is actually below 2019 levels," the economists wrote. "This continued downward trend suggests the labor market is no longer as tight, and the balance of power between employer and employee has shifted back towards the hiring firm." The largest slowdown in job-to-job pay raises occurred for middle- and higher-income Americans.