In 2022, the U.S. witnessed a surge in the number of workers quitting their jobs, a trend that has been dubbed the “great resignation.” A record 4.5 million workers, representing about 3% of the workforce, were leaving their jobs each month. While some economists believed this trend was over, new research from Microsoft and LinkedIn suggests that even more people are planning to quit their jobs in 2024. Surveys conducted by these two companies indicate that nearly half of professionals are considering leaving their current roles in the coming year, a higher percentage than in the previous year.
The job market in the U.S. is showing signs of significant change, with a 14% increase in job applications per opening since the fall of 2023. A survey of 1,013 U.S. professionals conducted in late 2023 found that 85% of workers are planning to look for new roles in 2024. Additionally, Americans’ confidence in their job-hunting prospects has reached a two-year high. Despite concerns about high inflation, the U.S. economy has managed to avoid the recession that was forecast for 2023. Job growth has been strong and stable since the beginning of 2024, contributing to the renewed sense of optimism among workers.
One major factor driving workers to consider a career change in 2024 is the ongoing issue of inflation. Nearly half of those planning to switch jobs this year cite the need for a higher income as a key motivator. Data indicates that individuals who change jobs tend to see more rapid salary increases compared to those who remain in their current roles. According to new research, the median year-over-year pay increase for job switchers was 10% in March 2024, a significant jump from six months earlier. With wages finally keeping pace with inflation, the potential return on investment of switching jobs appears much more appealing to workers.
While dissatisfaction with current roles and concerns regarding inflation are contributing to the increased desire to change jobs, some individuals may also be experiencing “resigners’ remorse.” A majority of those who quit their jobs during the great resignation expressed regret over their decision, particularly among Gen Zers and Gen Xers. The shift to new industries that were hiring rapidly during the great resignation may not have resulted in the lifestyle improvements that many had hoped for. Despite changes in the labor market landscape since the peak of the great resignation, there are still plenty of opportunities for those seeking new and better jobs.
The job market continues to show signs of strength, with 8.5 million job openings in March and particular demand for health care and skilled trades workers. While workers may not have the same level of leverage they had during the great resignation, there are still high-paying opportunities available for those willing to seek them out. The key is to be proactive and strategic in one’s job search, identifying industries and roles that align with one’s goals and aspirations. For those looking to land their dream job in 2024, resources like CNBC’s online course on job interviews and newsletters offering tips and tricks for success in work and life can be valuable tools. The current job market may present challenges, but it also offers opportunities for those willing to navigate it effectively.
