Employees Are Taking Pay Cuts in Huge Numbers

5 hours ago

Scott, after losing his job in 2023, applied to 1,600 jobs and completed 78 interviews before accepting a lower-paying contract role.
40% of white-collar workers who changed jobs at the end of last year took salary cuts of more than 10%, the highest share in at least a decade.
The labor market appears weaker than unemployment rates suggest, with long-term unemployment nearly doubling over the last three years.
Companies are requiring more years of experience for open positions, making it harder for mid-career and senior professionals to find suitable roles.
Workers like Scott risk 'wage scarring,' where accepting lower pay now could lead to lower earnings for years to come.
Recent layoffs in tech, attributed to AI, and unexpected job losses in February indicate a worsening white-collar job market.
Scott is working to impress his new bosses and is up for a promotion, but none of the potential new roles would restore his pre-layoff salary.

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