There is a perception that the job market is insecure; that people don’t or can’t stay with their employers for long and can’t count on stable employment. Meanwhile, economists worry about the opposite problem, they are concerned job changing has become less common and this means the economy has become less dynamic. Americans have become less likely to change jobs, which is assumed to mean less wage growth and skill development.
It is true Americans do change jobs less, but that is not just because the economy is less dynamic. A closer look at the data suggests there’s less job hopping because Americans have become better at finding the right job. In 1983 almost a quarter of American workers had been at their job for less than 1 year. Now it is only 20%. Economists speculate it’s because firms have become better at hiring people who are a good fit for the job. They’ve become more selective, which means matches are more likely to fit. It could be the result of more education or better screening from technology, say asking your LinkedIn contacts about a potential hire.
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