New statistics from the Office for National Statistics (ONS) show that in April 2021, pay growth was 6.6 percentage points greater for people who switched jobs than for those who stayed put, however, for those who remained in certain sectors, they enjoyed higher than average earnings.
People who moved to a different industry, changed occupation, or relocated at the same time, boosted their pay even more. But, job changers aged 65 years and over actually saw lower earnings growth than the year before.
Sarah Coles, senior personal finance analyst at Hargreaves Lansdown, explains: “The grass is slightly greener on the other side of the fence, but the ground may be less stable.”
Sarah continued: “Switching jobs will boost your pay by an average of 6.6%, and switching industries, occupations or regions at the same time can have an even more dramatic effect. But before you jump the fence, you need to know what you’re giving up.”
The most recent jobs figures showed a record of 994,000 job-to-job moves between January and March this year, triggered by resignations rather than people being let go.
Part of this is the annual merry-go-round, as people decide to make a new start for the new year, however, part is also down to pay.
With inflation running high, and some employers still holding tight to the purse strings, plenty of people are realising that they can boost their pay by changing jobs.
Sarah looks at both sides of the job switching fence.
Benefits of moving
Moving jobs tends to boost pay, but in some sectors the benefit of switching is even greater.
Those within arts, entertainment and recreation who moved saw average pay growth of 21%, and those within the information and communications sector saw it grow 20% – for stayers in both industries, pay grew 2%. If your job hunt takes you into a new industry, it can have an even bigger impact.
Median earnings growth was 2.1 percentage points higher for workers who changed jobs by moving into different industries than for those who changed jobs but remained in the same industry.
The industry you move from and to is key here – with those moving out of accommodation and food seeing earnings growth of almost 26%.
While pay usually gets a boost from job moves, hourly earnings are actually an average of 17% higher among those who stay put. This owes a great deal to the fact that …….