In the current labor market, the question of whether to stay with an employer or switch jobs has different payoffs depending on income level. According to a Bank of America study using internal deposit data, the highest earners—those in the top 5%—see notably greater year-over-year pay increases if they remain with their current employers, often approaching double-digit growth. Conversely, top earners who switch jobs generally receive only modest, low-single-digit raises.
For most workers outside this top bracket, switching jobs still delivers stronger after-tax wage gains compared to staying put. This includes lower- and middle-income earners and high earners below the top 5%. However, raises are not guaranteed for either group: roughly half of those who stayed and 44% of job-switchers experienced no pay increase or even a decrease in the first quarter of 2026, highlighting a slowdown in wage growth overall.
Bank of America notes that this divergence in outcomes likely reflects a cooling labor market among higher-paying industries. Workers who remain may reap larger raises as firms focus on retaining talent amid fewer hires and layoffs. On the other hand, job-switchers in these sectors may face less premium pay due to reduced competition for talent.
Data from ADP supports this trend, showing the smallest wage growth gap between stayers and switchers in seven years. In highly competitive sectors like construction, natural resources, and mining, job-switchers saw wage gains outpace those who stayed, with increases of 6.6% versus 5.6%.
The landscape also varies significantly by generation. Gen Z workers continue to switch jobs far more frequently than Gen X, with their earnings growth from job changes four times higher than for those who remain with their employers. Millennials also earn double the wage growth by switching jobs compared to staying. For lower-wage workers, job changes consistently deliver larger raises, though Gen Z’s gains from switching have declined by 20% since early 2022.
In contrast, older generations such as Gen X and Baby Boomers exhibit the opposite pattern. Their wage growth from switching jobs has stalled or declined, while those staying in their positions saw earnings increase slightly. Bank of America suggests this may result from some older workers choosing reduced hours near retirement or accepting lower pay after layoffs.
The data underscores how the balance between job loyalty and mobility impacts earnings differently across income levels and generations in today’s evolving labor market.