Some people switch jobs for different lifestyles. Some move to change careers. Some change to make more money, and very often, according to a new study, they do.
According to a new study from ADP Research Institute, workers who switched jobs made 5.3% more than they did last year. The data was based on what people made in the second quarter, compared to the same quarter a year ago. ABC News reviewed the data and asked recruiter Amy Cole to confirm the results. She said, “It is definitely the case. If someone would like to make a significant leap, the truth is they’d have to leave their company.”
Many economists believe that low unemployment should push up wages. Unemployment was 3.7% in June when the economy added 224,000 jobs. This was more than most experts expected, to a large extent because job additions have gone up by over 200,000 most months over the last two years. The run is almost unprecedented.
But, companies in the private sector are doing so well financially that more positions opened up in the final quarter of 2018 than there were job applicants, according to the Bureau of Labor Statistics. The same trend holds true regionally. In May, unemployment rates dropped in six states and were steady in 44.
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In other words, the unemployment rate did not increase in a single state. Some sectors will add many more jobs in the next several years.
ADP reported that people who kept their jobs and those who entered the workforce also did relatively well financially. Each posted pay increases of 5% in the last year. This is well above the rate of inflation which was 1.6% for the year which ended in June. People who make more money than the inflation rate tend to spend more, usually driving up GDP.
The most recent U.S. GDP improvement of 2.1% was boosted almost completely by consumers spending. Michael Reynolds, investment strategy officer at Glenmede told CNBC, “Altogether, robust domestic consumers are more than offsetting the headwinds of a weakening manufacturing economy.”
So, a strong job market drives consumer spending, which, in turn, likely drives an increase in jobs. However, not all jobs are created equal. These are the 25 lowest paying jobs in America.
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