While the job market has been on fire throughout the year—there’s more open positions than available workers---that momentum and optimism hasn’t transpired on workers’ paychecks.
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A new survey from Bankrate found that among employed Americans, 62 percent have not gotten a pay raise—or a better-paying job—over the past year.
That number is up 10 percent from last year, when 52 percent reported no bump in pay. Still, despite the lack of incentive, only 25 percent of those polled said they’ll look for a new job next year to seek out higher wages.
Greg McBride, chief financial analyst for Bankrate.com and the conductor of the study, cited the lack of willingness to change jobs, “particularly in the early career years” as part of the reason why wages are stagnant.
“Only one-third of all millennials intend to capitalize on this tight labor market and look for a new job in the next 12 months,” McBride told FOX Business.
He added that most households that are seeking income growth are increasingly finding it “the old-fashioned way – they earn it to quote an old TV commercial, usually by working more hours rather than being paid more per hour.”
Mike Gnitecki, a licensed paramedic in Longview, Texas, told Bankrate that he was stuck at his annual base pay of $43,500 for three years straight due to a pay freeze at his employer.
“It basically [felt] like my pay has dropped each year due to normal cost-of-living increases,” Gnitecki said, while “at the same time, my experience and responsibility has increased.”
Gnitecki said he became “frustrated” and decided to find a new job. Within months, he got both a new job and a raise.
However, McBride warns that even in a tight labor market, “getting a pay raise is hardly a slam dunk,” especially for those looking to stay at their current job.
“Employers are less likely to dole out raises just for showing up, but rather reward those that can demonstrate their value to the organization,” he added.
According to the research, pay raises last year were predominantly performance-based or for employees who took on more responsibility.
Of the 27 percent who got a raise, they noted that it was merely a cost of living increase.