- Daniel Zhao, an economist at Glassdoor, said it’s “still a good time to find a new job.”
- But before switching jobs, Zhao said it’s “important to take deliberate risks” as things appear to be slowing down.
- The US added 315,000 nonfarm payrolls in August and 11.2 million job openings in July.
The job market may still be hot, but according to one economist, job switchers thinking about throwing in the towel should do their research before quitting.
Data from Friday from the Bureau of Labor Statistics shows that the US added fewer jobs in August than in July: 315,000 versus 526,000. However, job openings remain high, with data showing 11.2 million in July earlier this week, and the job market can still be described as “very hot,” Daniel Zhao, chief economist at Glassdoor, told Insider.
“Even though it’s cooling down, this is still a good time to find a new job, especially as inflation is eating up wage increases,” Zhao said. “One of the best ways to get a pay raise that beats inflation is to change jobs. That’s often when employees have the most influence.”
Employees who want to quit and move to a new job may need to be extra careful.
“The caveat I’d like to add is that it’s important to take deliberate risks,” Zhao said. “Because the job market is hot right now, but it seems like things are slowing down. So it’s just important for employees to do their research, understand if the company they’re going to is financially stable or in an industry that needs continue growing.”
For example, some tech companies have laid off employees. However, not all layoffs are announced by technology companies, such as Ford and 7-Eleven. Insider’s Shriya Bhattacharya reported in May that it may be more difficult to change jobs as some companies have delayed or even halted hiring.
Alison Sullivan, Glassdoor’s career trends expert, previously said in a statement to Insider in July that “it’s important to carefully evaluate your next steps” before resigning.
“No one wants to regret the quitter,” Sullivan said. “That can happen when a new job or company isn’t what you expected. That’s why it’s critical to do research when making these career decisions.”
In the past year, millions of people have quit their jobs and joined the Great Resignation for reasons such as better pay. And while some people deeply regret their dismissal, a move can have positive effects for employees.
“I think in the long run I hope the Great Resignation is a reminder to the workers that they have influence,” Zhao said. “That they can use quitting as an opportunity to find better opportunities, negotiate better pay increases. So I think there’s a potential long-term effect of the Great Resignation as a confidence boost for American workers.”
Current employees can also use leverage in their jobs so they don’t have to hand in their resignation letters, as CNBC reported. That includes asking for a promotion or raise.
AnnElizabeth Konkel, an economist at Indeed Hiring Lab, told Insider after Friday’s jobs report that “we continue to see employers have demand for employees” and that “employees can continue to make choices.”
In short, Konkel described the labor market as a strong one for workers.
“Overall, the job market is still healthy,” Zhao said. “We’re seeing the job market cool slightly, consistent with how the overall economy is slowing.”