The Quit Rate Crash: Why Workers Are Staying Put

For the past six months, something unusual has been happening with wages that America has not seen since the darkest days of the Great Recession.

CNBC reports that workers who stay put in their jobs are now seeing bigger pay bumps than those who jump ship for new opportunities. Usually, it is the other way around. Workers who job-hop see bigger pay increases.

When staying put pays more

Since February 2025, job-stayers have been winning the wage growth race, with their paychecks growing at a 4.1% annual clip compared to just 4% for job switchers, according to Federal Reserve Bank of Atlanta data. The margins might seem small, but this reversal is sending alarm bells through economic circles everywhere.

“We only tend to see it around other times when the labor market has been weak,” notes Erica Groshen, a senior economics advisor at Cornell University and former U.S. Bureau of Labor Statistics commissioner.

In a strong job market, employees often move between companies, and those transitions can result in higher pay. That pattern has held for decades. When the pace of those moves slows, it is worth noting.

Why this flip signals trouble

The last time America saw this wage growth reversal, it lasted 18 months, stretching from February 2009 to July 2010. That was right in the heart of the Great Recession aftermath. Before that? The dot-com bust of the early 2000s.

This trend reflects a mix of psychology and economics. Fewer employees are choosing to leave their jobs, and the quit rate has remained near 2% since the beginning of the year. Rates this low have not been seen consistently since early 2016.

The long-term unemployment trap

About 25% of unemployed individuals in July were classified as long-term unemployed, meaning they had been without work for at least six months. That is the highest proportion since February 2022.

For many in this situation, unemployment benefits may have ended, making it harder to hold out for positions that match their skills or pay expectations. As a result, some may feel pressure to accept lower-paying roles.

The job market has not collapsed, but momentum has slowed. Job openings are down from their pandemic-era highs, and employers are hiring at the slowest pace in more than a decade.

Playing defense in a frozen market

When job-hopping slows, career experts point to alternative strategies.

Networking beyond job boards can open unexpected doors. Attending industry events, seminars, or even community gatherings creates opportunities for connections that do not always begin with a direct job inquiry.

Exploring options within a current employer can also be worthwhile. Many organizations prioritize internal promotions during slower hiring cycles, and existing knowledge of the workplace can be an advantage.

This period can also be used to build skills. Earning certifications, learning new software, or strengthening expertise may position workers to benefit once the job market begins to recover.

Protect your finances while you wait

Periods of slow hiring can feel uncertain, but they also provide a chance to strengthen your financial footing while you focus on career resilience. A cautious approach now may leave you better prepared for opportunities later.

• Revisit your budget. Track spending carefully and trim nonessential costs to stretch your income further. Get a full picture of your finances with Origin.
• Build an emergency fund. Even small, regular contributions can help cover unexpected expenses if job prospects remain limited. SoFi Checking is offering 4.50% APY with $300 bonus with direct deposit. (May change without notice.)
• Avoid high-interest debt. Credit card balances can grow quickly during periods of reduced income; prioritizing payoff or consolidation can ease pressure.
• Earn a little extra to tide you over. This company's members take surveys in their free time and collectively earn over $55,000 daily.
• Maximize workplace benefits. If your current employer offers retirement matches, training programs, or health savings accounts, take advantage while you have access.
• Invest in yourself. Certifications, new skills, or online courses can pay off when the job market picks back up.

Slower job markets do not last forever. By staying financially cautious and investing in your skills, you give yourself the flexibility to move when conditions improve — and the confidence to weather the waiting period in the meantime.