Gen Z faces slower wage growth as job hopping loses payoff

October 3, 2026 at 03:30 PM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

Young U.S. workers are seeing slower wage gains as job hopping loses its payoff, with the quit rate falling to 1.9% in August from 3% in April 2022. The unemployment rate for workers aged 22 to 27 reached 7.2% in the second quarter of 2026, compared with 4.1% for all workers. Entry-level employee confidence hit a record low of 43% in September, even as senior-level confidence rose to 63%.

Key Facts

The U.S. quit rate fell to 1.9% in August 2026 from 3% in April 2022, according to the Bureau of Labor Statistics.
Unemployment for workers aged 22 to 27 was 7.2% in Q2 2026, versus 4.1% for all workers, per the Federal Reserve Bank of New York.
42% of young college graduates were in jobs that did not require a degree, compared with 34% of all college graduates.
Glassdoor's Employee Confidence Index shows only 43% of junior employees were confident about their company's outlook in September, versus 63% of senior employees.

The Shift from Great Resignation to Big Stay

Megan Lieu, a 2019 University of Virginia graduate, job-hopped three times after leaving EY Consulting in 2021, gaining roughly 20% income each move. She now advises new graduates against job hopping, saying it no longer pays as it did during the post-COVID boom. The Bureau of Labor Statistics reports the quit rate dropped to 1.9% in August 2026 from 3% in April 2022. Nela Richardson, chief economist at ADP Research, says the labor market is solid but different for young people.

Youth Unemployment and Underemployment

The Federal Reserve Bank of New York found unemployment for workers aged 22 to 27 at 7.2% in Q2 2026, compared with 4.1% for all workers. Even among young workers with college degrees, the unemployment rate was 5.7%. 42% of young college graduates held jobs that did not require a diploma, versus 34% of all college graduates.

Confidence Gap Between Junior and Senior Employees

Glassdoor's Employee Confidence Index hit a record low for entry-level workers, with only 43% confident in their company's outlook in September. In contrast, 63% of senior-level employees expressed confidence in their company's outlook. Entry-level confidence fell four percentage points over the past year, while senior confidence rose.