Whether by choice or necessity, many workers will change jobs in the coming months.
Some companies, especially tech giants, are announcing deep cuts to their workforce as they face continued challenges from rising interest rates and inflation.
Recently, Google said it would be laying off workers 12,000 peopleAmazon announced a a new wave of layoffs it affects more than 18,000 people, and Microsoft said it plans to lay off 10,000 employees in fear of an impending recession.
At the same time, government data shows that the US labor market is still strong and at a record high low unemployment rate of 3.5%.
Many industries are still doing very well, according to Barbara Safani, president of Career Solvers in New York. Tech layoffs “are not necessarily reflected in the broader labor market,” she said.
And the Federal Reserve has proven it can raise rates without jeopardizing a previously robust labor market, said Randy Frederick, managing director of trading and derivatives at Charles Schwab. he recently told CNBC.
“If you can create a drop in inflation without crushing the labor market, that’s a ‘Goldilocks’ soft landing,” he said.
96% of workers will be looking for a new job in 2023
In general, “the first quarter of the year is always a good time to look around because fiscal budgets have been supplemented,” Safani said.
Overall, 96% of workers are looking for a new job in 2023, mostly in search of better pay, according to a recent job site report. Monster.com.
“That’s phenomenally high, ‘even compared to the numbers at the top’big resignation“, said Vicki Salemi, career expert at Monster.
Almost half, or 40%, of job seekers said they needed more income inflation and rising spending, Monster found. Others said they didn’t have room to grow in their current role or were in a toxic workplace.
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Employees are still leaving at high rates
Changing jobs is widely considered the best way to improve your career prospects and salary. In fact, the difference in wage growth for people who move to another job compared to those who stay in their current role is the same record high.
The latest figures show that people who switched jobs saw 7.7% wage growth according to Daniel Zhao, chief economist at Glassdoor, citing data from Federal Reserve in Atlanta.
Key factors when looking for a new job
For those starting their job search, Safani advises clients to consider how all aspects of the new position measure up.
“Really look at it holistically,” she said. “You may be getting more money, but it’s important to check out the opportunity.” Other factors to consider include opportunities for advancement, flexibility and a healthy work-life balance.
“Do your research,” Salemi advised. “Find out what the benefits are, find out what the culture is like.”
“Employees can have both – higher pay and a positive, healthy work environment.”
