While wage inflation worries some economists, wage gains are great for workers. A recent study reports that workers who change jobs receive significant raises — and sometimes double-digit pay increases.
Nearly two-thirds (64.2%) of people who recently changed jobs said their new positions paid more than their old ones, according to a recent ZipRecruiter survey. Of these workers, 47.9% received a raise of 11% or more.
Additionally, 22% of survey participants said they received signing bonuses because it appears employers are more actively recruiting new workers. This trend surprises labor specialists. “It’s truly remarkable,” said Julia Pollak, chief economist at ZipRecruiter. “Before the pandemic, this kind of bonus was rare.” Looking strictly at first-time hires, the percentage of survey respondents saying they had been offered a signing bonus jumped to 33%.
The US Department of Labor says only 4% of private sector workers received a signing bonus in 2000. A substantial 12% of jobs advertised on ZipRecruiter now feature signing incentives, up from 2% to 3% before the onset of COVID-19. 19 pandemic.
ZipRecruiter’s survey was conducted in February and drew responses from 2,064 US residents who had started a new job in the past six months, according to the Wall Street Journal.
With the consumer price index up 8.5% in the last 12 months in March, widening wage gains across the economy could keep US inflation high even if supply chain disruptions and energy volatility decrease.