Job-hopping is not as appealing as it used to be, with the median pay increase for workers switching jobs decreasing to 4.8% last month compared to 7.7% two years ago, according to the latest data from the Atlanta Fed.

Even though employees who change jobs usually get higher pay raises than those who stay in their current positions, the gap between the two has narrowed and is now at its lowest point in ten years. The Atlanta Fed's research revealed that workers who stayed in their job and received an annual raise saw a similar pay increase of 4.6%.

Julia Pollak, chief economist at ZipRecruiter, pointed out that there is a shift away from the increased pay incentives offered to new hires during the pandemic. Many companies are now focusing on long-term retention strategies like retirement and health benefits to retain their workforce.

With federal job cuts and layoffs by large corporations contributing to a challenging job market, it seems that the era of abundant job opportunities for seekers has ended. A survey conducted by Harris Poll found that the majority of Americans believe it is challenging to find better job prospects, indicating that employers currently have the upper hand in the market.

The job search scene appears bleak, as a minimal 13% of job seekers reported positive progress in a recent ZipRecruiter report. More than 60% of job seekers highlighted receiving no job offers, marking a three-year high.

In 2022, wage growth played a significant role in employees leaving their current jobs for better-paying alternatives, according to Allison Shrivastava, an economist at Indeed Hiring Lab. However, with decreased job competition, the attractiveness of switching jobs has diminished, leading many workers to stay in their current roles as evidenced by the Bureau of Labor Statistics' low quits rate of 2.1%, resulting in only 3 million people quitting in January.