economy
February 19, 2026
Life after the Great Resignation: Incentives are dimming for workers to change jobs
The disparity between average annual pay increases for those staying in their jobs against those leaving has all but collapsed.
TL;DR
- The Great Resignation, marked by high employee turnover and increased job mobility for better pay, has subsided.
- The number of 'quits' has dropped significantly since its peak in early 2022, and job openings have nearly halved.
- The pay advantage for workers switching jobs has drastically reduced, narrowing from 8.4 percentage points to 1.9 percentage points.
- The labor market is described as stable with low hiring and firing, impacting productivity growth as talent is not being repositioned effectively.
- While overall pay gains for switchers are still higher than stayers, the gap is closing, with industry-specific variations existing.
- Job seeker activity has increased, while job postings have remained relatively stable, indicating a tougher market for job seekers.
- Low unemployment is maintained, but a lack of labor market dynamism is a concern, as most hiring is concentrated in healthcare.
Continue reading the original article