New Research: Switch Employers To Raise Income
ST. PAUL -- New research from the Minnesota Department of Employment and Economic Development has revealed a hard truth for workers: if you want a raise, quit your job.
Senior Labor Market Research Analyst Alesia Leibert has published an article titled Job Mobility in the Post-COVID Recession Labor Market. The article studied the Minnesota labor market after the COVID-19 pandemic.
She found two main “pain-points” for state businesses.
- Price inflation is outpacing wage growth by eroding their real earnings.
- High voluntary quit rates are hurting firms while they’re already struggling to find staff.
She found that employees that stayed with their company saw inflation-adjusted income shrink by 1%, but the typical worker who found a new employer saw inflation-adjusted growth grow by 6.1%. Younger workers saw a larger earnings increase on average than older workers.
Leibert says the research shows employers who are able to respond more quickly by raising wages or investing in other employee retention strategies fare much better in the competitive environment.
For more on the research, click here.