Job switchers see pay gains outpace stayers in low-hire market

September 13, 2026 at 08:45 PM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

Private-sector job changers saw base pay rise 4.7% in August versus 3% for stayers, ADP data shows. Gross pay for switchers jumped 7.3% year over year, while stayers gained 4.4%. The Atlanta Fed reports median pay increases for switchers hit 5% in August, up from 4.4% in July.

Key Facts

ADP reports base pay for private-sector job changers rose 4.7% in August, compared with 3% for job stayers.
Gross pay for job changers increased 7.3% year over year, while gross pay for job stayers rose 4.4%.
The Atlanta Fed's data shows median pay increase for job switchers rose to 5% in August from 4.4% in July.
Construction workers see the highest job changer pay, while leisure and hospitality is the only sector where job changers earn less than stayers.
Nearly 70% of HR professionals report challenges recruiting for full-time positions, according to the Society for Human Resource Management.

Pay Gap Widens

ADP's August data shows base pay for job changers rose 4.7% year over year, compared with 3% for job stayers. Including tips, commissions, and bonuses, gross pay for job changers jumped 7.3%, while stayers saw a 4.4% increase. The Atlanta Fed's median pay increase for switchers reached 5% in August, up from 4.4% in July, while stayers held at 3.6%. ADP chief economist Nela Richardson said there is an opportunity to boost wages by changing jobs, even in a low-hire, low-fire market.

Sector Differences

Construction workers see the highest job changer pay, as employers cannot find enough workers and wages adjust accordingly. Leisure and hospitality is the only sector ADP tracks where gross pay for job changers is lower than for job stayers. Richardson said that sector rewards stability and loyalty over job changing. Bank of America Institute data shows hourly workers and Gen Z employees are getting the biggest pay bumps.

Labor Market Tightness

Bank of America Institute economist Taylor Bowley said the pay incentive to switch jobs is strengthening, especially at small businesses. Bowley added that many businesses report difficulty filling positions because applicants' skills do not match requirements. A Society for Human Resource Management report found nearly 70% of HR professionals face challenges recruiting for full-time roles.