You Won’t Get More Money From Quitting in This Economy, BofA Says, as Job-Hopping Freezes in White-Collar America
For much of the past three years, job-hopping was one of the fastest ways for American professionals to boost their paychecks. Workers across tech, finance, consulting, and other white-collar industries took advantage of labor shortages and aggressive hiring by switching companies, often walking away with double-digit salary hikes. But according to new insights from Bank of America (BofA), that window of opportunity is rapidly closing.
The End of the Job-Hopping Pay Premium
BofA economists point out that the “quitting premium” — the extra wage growth earned by employees who voluntarily change jobs — has flattened. During 2021 and 2022, professionals could expect anywhere between a 10% to 20% jump in compensation by moving to a new employer. Today, that figure is shrinking, with most new job offers barely keeping pace with inflation.
The cooling economy, slower corporate revenue growth, and tighter budgets have combined to put a cap on salary growth. “The data suggests the bargaining power has shifted back toward employers,” BofA analysts noted, emphasizing that the era of “easy money” from job-switching is over.
Why White-Collar Job-Hopping Has Stalled
Several factors are behind this shift:
- Corporate cost-cutting: From Wall Street banks to Silicon Valley startups, companies are trimming expenses. Hiring freezes, restructuring, and smaller bonus pools mean fewer lucrative offers are on the table.
- Labor market rebalancing: The demand for knowledge workers has normalized after pandemic-driven surges. Employers are prioritizing retention and internal promotions over external hires.
- Economic uncertainty: Concerns about interest rates, inflation, and geopolitical risks have made firms more conservative with salary offers.
Together, these pressures mean that white-collar workers who once had the upper hand in negotiations are finding less leverage.
A New Era of Job Loyalty?
The decline in pay premiums for switching jobs may push professionals to rethink their career strategies. Instead of chasing quick raises through frequent moves, workers may find more stability — and possibly better long-term rewards — by staying put. Many organizations are investing in upskilling programs, leadership tracks, and flexible benefits, which could make internal mobility more attractive than external offers.
At the same time, workers who do switch are increasingly motivated by career growth, work-life balance, or job security, rather than money alone. Surveys show younger employees are still open to exploring new roles, but expectations for outsized salary hikes are fading fast.
What Workers Should Do Now
Experts suggest that in this environment, professionals should:
- Focus on skills, not just salaries: Strengthening expertise in areas like AI, data analytics, sustainability, or supply chain resilience can help workers stand out regardless of market conditions.
- Negotiate beyond base pay: Flexible work arrangements, professional development funds, or equity options may hold more value than modest raises.
- Think long-term: Loyalty to a stable employer could pay off in promotions and job security, especially when external offers are no longer guaranteed windfalls.
The Bottom Line
The U.S. job market is not collapsing, but it is cooling in ways that matter for white-collar workers. According to Bank of America, quitting no longer guarantees higher pay, and the once-booming job-hopping culture is entering a pause. For employees, the message is clear: this may be the time to build staying power, sharpen skills, and seek career growth within rather than outside.