The practice of changing employers frequently, known as job-hopping, has long been a strategy to boost salary and seniority. But with the employment market cooling, is it still the best move? Data shows that job switchers still earn more, but the gap is narrowing, and loyalty is paying off for higher earners. Here's what you need to know.
The Current Landscape
We've moved from the "Great Resignation" to the "Great Freeze," says Lauren Thomas, economist at Deel. Entry-level hiring is weak, and employers favor experienced candidates. In the US, job switching has dropped from a peak of 16% in 2022 to 13.5% in early 2025, and the wage premium for switching is shrinking.
Why Loyalty Might Pay
Bank of America Institute data reveals that higher earners benefit more from staying put. For women, loyalty can backfire: they often shoulder caring responsibilities, prioritize job security, and may be taken for granted, missing out on promotions and fair pay.
The Rise of Side Hustles
As employers trim hiring budgets, side hustles are becoming significant income streams. In the US, full-time entrepreneurship hit a record high in 2025. This trend suggests that diversifying income may be a smart alternative to traditional job-hopping.
AI and Hiring Risks
17% of UK employers expect AI to reduce headcount, and companies are risk-averse, preferring candidates with years of experience. Career coach Alice Stapleton notes that recruiters' algorithms favor those who've done the job for years.
The Jungle-Gym Mindset
Instead of a ladder, think of your career as a jungle-gym, where you leap from bar to bar. Even in a tough market, opportunities exist. As Stapleton says, "Someone is getting those jobs—why not you?"
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