U.S. Workers Embrace Stability as Job Switcher Wage Growth Falls to 7% from 20% in 2022

Workers across the U.S. are increasingly holding on to their jobs as wage growth for those switching roles has stalled, a trend Bank of America has identified as the first such occurrence since 2010 [1]. The phenomenon reflects a shift in labor market dynamics, with “job huggers”—employees opting for stability over mobility—becoming more prevalent. According to BofA, job hopping, which once surged during the “Great Resignation,” has cooled significantly, with the rate of job-to-job transitions now just 2% above pre-pandemic levels after peaking in 2022 [1].

This cooling is supported by data from the Bureau of Labor Statistics, which recently revised downward its job growth estimates for May and June, signaling a weaker labor market than previously reported [1]. The July quits rate, a key indicator of worker mobility, hit its lowest level since December 2024, further underscoring the reluctance of employees to leave their positions [1]. Glassdoor Chief Economist Daniel Zhao described the data as showing a labor market that is neither thriving nor collapsing, but rather characterized by a general sense of stagnation [1].

Wage growth for job switchers has also collapsed. In 2022, those who changed jobs could expect median pay raises of around 20%, but by July 2025, that figure had fallen to just 7%, falling below even pre-pandemic averages [1]. BofA noted that for the first time since the early 2010s, the wage gains for switchers now match those who stay in their roles. This convergence was last observed during the slow economic recovery following the Great Recession [1].

The slowdown is particularly noticeable in white-collar sectors, including finance, information technology, and business services, where job changes have significantly declined [1]. These industries often rely on monthly pay cycles, which make it easier to track job transitions. In contrast, industries like manufacturing and construction still see relatively higher turnover due to ongoing labor shortages and weekly pay structures. However, even in these sectors, job switching has slowed, pointing to a broader cooling of the labor market [1].

According to a November 2024 report from Glassdoor, 65% of workers feel “stuck” in their roles—desiring to move but unable to due to a lack of opportunities or external constraints [1]. The rise of quiet quitting and disengagement has also been noted, with Gallup estimating that employee disengagement cost the global economy $438 billion in 2024 [1]. Meanwhile, executive turnover has increased, with record numbers of CEO departures reported, adding to the sense of instability.

The situation for younger workers is even more concerning. Over 13% of unemployed Americans in July were new entrants or those seeking their first job, a group dominated by Gen Z and the highest level since 1988 [1]. The youth unemployment rate reached 7.4% in June, up from previous months. BofA cited research from the International Labor Organization indicating that younger workers have been hit harder by employment losses due to pandemic disruptions and limited access to education and on-the-job training [1]. A proprietary survey by the bank also found that younger generations are more vulnerable to work-related setbacks than older workers [1].

BofA estimated that nearly 289 million young people globally are not gaining professional experience or skills through employment or education, limiting long-term economic potential [1]. The bank expressed concerns about the future employment prospects of young workers, noting that uncertainties such as new tariffs, the adoption of AI, and the continued scarcity of entry-level jobs could further hinder their ability to gain a foothold in the workforce [1].

In summary, the U.S. labor market is undergoing a significant transformation. The rise of job huggers and the decline of job hoppers point to a workforce that is increasingly risk-averse and prioritizing stability. As wage growth for switchers stalls and economic conditions remain uncertain, many workers are choosing to remain in place—whether out of caution, disengagement, or a lack of alternatives—marking a stark departure from the high-mobility labor landscape of the past decade [1].

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[1] [‘Job huggers’ sense trouble brewing in the jobs market as BofA flags wage growth stalling for switchers for the first time since 2010](https://fortune.com/2025/08/25/job-hopping-hugging-quits-stuck-wage-growth/)