Read our full analysis for a more in-depth look at these trends.
Should I stay or should I go? The pay tradeoff
While switching jobs can support pay growth for younger workers, top earners tend to see greater gains by staying put.
May 2026
Key takeaways
- Bank of America internal deposit data suggests the labor market may be gradually improving. Payroll growth has picked up and job switching has edged higher, signaling some recovery in Q1 2026. While job mobility remains below pre-pandemic levels, it still pays to switch companies, with after-tax wage growth remaining higher than for those who stay put.
- Notably though, overall, more than 40% of workers are seeing flat or declining pay after taxes and benefits, suggesting some ongoing financial strain through Q1 2026. This dynamic is fairly similar to previous years and across income cohorts, suggesting some level of stability. However, there is one difference across income groups: the top 5% of earners are rewarded far more for their loyalty than any other groups, according to Bank of America internal deposit data.
- Finally, it still pays to switch companies when you're young. Millennials who moved to another company saw after-tax wages grow twice as fast compared to those who stood still, while the rate of earnings growth increased fourfold for Gen Z. Still, this rate has slowed some in the past four years alongside the broader labor market slowdown.
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