A growing number of American workers are leaving their current jobs in search of more money.
According to the Atlanta Fed's wage tracker, which monitors wages of continuously employed workers, Americans who are willing to change jobs do benefit.
It shows those who switched jobs in July earned 4.3 percent more than a year earlier. People who stayed in the same job only got a three percent increase.
The quit rate, when people voluntarily leave a job, has almost recovered to levels seen before the recession of 2007. Experts say job switching is a good sign for the economy.
“There’s a clear indicator that pay rates are going up,” WSB Consumer Expert Clark Howard says. “And it’s because people have the guts now to quit their job.”
Howard adds, “What economists refer to as the ‘quit rate’ has gone up to levels we haven’t seen in a long time in the United States.”
He also says people most people get bigger paychecks, “not from the employer they work for, but the employer they go get a job from.
“So if you’ve been at the same place a long time, you think you’re being rewarded for your loyalty – you’re actually being punished in the paycheck.”
Howard says, “If you want to try to boost your pay, you’ve got to go check and see out there what somebody else thinks you’re worth and often that could lead to a big booster shot in what you take home.”
He adds, “People perceive now that if they quit a job, they’re going to be able to find another one. And they’re not worried that they’ll quit and then be unemployed for an extended period of time.
“Once people have that courage – that leads to employers having to boost paychecks."