Job Transitions No Longer Guarantee a Higher Salary in the United States
Recent federal data indicate that changing employers does not automatically lead to a significant increase in compensation. In early 2025, workers who remained with their current employers saw an average raise of 4.6%, while those who switched jobs experienced an increase of only 4.8%. This narrowing gap marks the smallest disparity observed over the past decade compared to earlier figures from 2023, when job changers enjoyed increases as high as 7.7% versus 5.5% for those staying put.
Shifting Dynamics in the Labor Market
According to economist Yongseok Shin, the outlook is less favorable than it once was. Many employees now opt to maintain their current roles instead of embarking on a job search, as the lure of a substantial salary hike has diminished. Recruitment expert Keith Sims also points out that even industries known for competitive wages, such as technology, are now presenting offers that fall markedly short of previous expectations.
Adjustments in the Technology Sector
The technology industry appears to be undergoing a significant correction. Professionals who enjoyed considerable salaries during the pandemic are now encountering offers that are considerably lower than before. While most positions, including roles like software engineers and technical managers, have seen only modest changes in median pay, only select profiles—such as data scientists and hardware engineers—continue to benefit from salary growth.
Realities of the Job Search
For senior professionals, securing a new position at their previous level of income has become increasingly difficult. For instance, a creative director who once earned over 200,000 USD now finds that comparable opportunities are offering between approximately 140,000 and 160,000 USD. Similarly, another candidate, after applying to more than 2,500 positions using advanced search tools, ultimately accepted an offer that paid 50,000 USD less than his former salary.
“If you decline an offer, there are plenty waiting in line,” an industry insider remarked.
Budgetary Pressures and Internal Promotions
Overall, the number of voluntary resignations has fallen to levels not seen since 2020. Projections for wage increases among current employees have also shifted downward to an anticipated 3.7% this year, compared to the 4% observed in 2024. Many internal promotions now come in the form of title enhancements or additional responsibilities without a corresponding adjustment in pay, a practice sometimes referred to as offering “dry promotions.”
The Exception Found in the Financial Sector
The financial industry stands out as a notable exception to this trend. Banking institutions are maintaining highly competitive wages for experienced executives, particularly for those with over five years of proven expertise. Record-breaking profits in certain financial institutions have led to continued investment in top talent, although experts caution that rapid changes in the market can still occur.
| Category | Average Raise (2025) |
| Job Stayers | 4.6% |
| Job Switchers | 4.8% |
The evolving landscape of the labor market signals that the traditional benefits linked with job mobility are diminishing. With salary increments shrinking and companies tightening their compensation budgets, the strategy of switching employers to secure a better paycheck is proving less effective than it once was. Employers and employees alike must now navigate these new economic challenges in a more cautious and pragmatic manner.
Tyler Matthews, known as “Crypto Cowboy,” is the newest voice at cryptovista360.com. With a solid finance background and a passion for technology, he has navigated the crypto world for over a decade. His writing simplifies complex blockchain trends with dry American humor. When not analyzing markets, he rides motorcycles, seeks great coffee, and crafts clever puns. Join Crypto Cowboy for sharp, down-to-earth crypto insights.