By choice or necessity, many workers will change jobs in the coming months.
Some companies, especially tech giants, have announced major cuts to their workforce as they face ongoing challenges from rising interest rates and inflation.
Most recently, Google announced that it would be laid off 12 thousand peopleAmazon announced a a new wave of job cuts affects more than 18,000 people, and Microsoft has said it plans to do so lay off 10,000 workers amid fears of an impending recession.
At the same time, government data shows that the US labor market is still strong, with a record low unemployment rate of 3.5%.
Many industries are still doing very well, according to Barbara Safani, president of Career Solvers in New York. She said layoffs in tech “don’t necessarily reflect on the broader labor market.”
And the Federal Reserve has shown it can raise rates without jeopardizing a robust labor market, said Randy Frederick, managing director of trading and derivatives at Charles Schwab. recently told CNBC.
“If you can create lower inflation without destroying the labor market, that’s a soft landing for Goldilocks,” 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 review because financial budgets have been replenished,” Safani said.
Overall, a whopping 96% of workers are looking for a new job in 2023, mainly in search of better pay, according to a recent report by jobs website Monster.com.
“That’s phenomenally high” even compared to the numbers at the top “great resignation” said Vicki Salemi, career expert at Monster.
Almost half, or 40%, of job seekers said they needed more income inflation and rising costs, Monster found. Others said there was no room for growth in their current role or that they worked in a toxic workplace.
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Changing jobs is considered the best way to improve career prospects and pay. In fact, the difference in wage growth for those who change jobs compared to those who stay in their current jobs record high.
Recent data shows that people changing jobs have seen Wage growth was 7.7%. as of November, while workers who remained at their jobs saw 5.5%, according to Daniel Zhao, lead economist at Glassdoor, citing data from Atlanta Federal Reserve.
Basic considerations when looking for a new job
For those starting their job search, Safani advises clients to consider how well all aspects of the new position fit.
“Look at it really holistically,” she said. “You may be getting paid more, but it’s important to check the possibility.” Other factors to consider include opportunities for advancement, flexibility and a healthy work-life balance.
“Do your research,” Salemi advised. “Learn what the benefits are, learn what the culture is.”
“Workers can have both—higher wages and positive, healthy working conditions.”
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