From Yahoo Finance: 2025-04-02 10:58:00

The gap in pay raises between job changers and job stayers is at its lowest level since the labor market began recovering from the pandemic in 2020. New data from ADP shows wage growth for job changers fell to 6.5% in March, while pay growth for job stayers slipped to 4.5%.

The “pay premium” for changing jobs is just 1.9%, the lowest since tracking began in November 2020. ADP chief economist Nela Richardson noted the lack of dynamism in the labor market, as firms are not laying off workers and workers aren’t quitting.

The decline in pay premium for job movers could signal a further drop in the quits rate among workers. The quits rate, a measure of worker confidence, hit 2% in February, near a decade low. ADP’s Employment Report showed the private sector added 155,000 jobs in March, surpassing expectations.

While the headline increase in jobs is positive, job gains were not broad-based. Professional and business services, financial activities, and manufacturing drove almost 75% of job gains in March. The upcoming March employment report is expected to show the US added 140,000 jobs, with the unemployment rate remaining at 4.1%.



Read more at Yahoo Finance: ‘Pay premium’ for switching jobs hits post-pandemic low