In the first quarter of 2026, the top 5% of earners who remained with their employers received year-over-year pay increases approaching double digits, outpacing peers in the same income bracket who switched jobs and saw only low-single-digit wage growth. This marked the first time in seven years that job stayers at the top of the earnings distribution received larger raises than job switchers in their group.

For all other workers—encompassing lower-, middle-, and higher-income employees outside the top 5%—changing employers continued to yield higher after-tax wage gains than staying put. However, about half of employees who stayed in their roles and 44% of those who switched jobs saw no pay increase or experienced a wage reduction during the same period.

The overall wage growth gap between job stayers and job switchers narrowed to its smallest level in seven years. In January 2026, the average pay growth difference between the two groups stood at just 1.9%, according to ADP data.

Generational patterns in job mobility and earnings also emerged. Gen Z workers switched companies more than twice as often as Gen X employees during Q1 2026. Among Gen Z, job-hoppers’ earnings growth rate was four times that of those who stayed, though their pay increases have declined by 20% since Q1 2022. Millennials who changed jobs saw wage growth double that of stayers.

Older job-hoppers, by contrast, saw flat or declining year-over-year wage growth, while their counterparts who remained employed experienced earnings gains. Bank of America explained, “In our view, some people in this generation may be taking similar or lower earnings as some are choosing to work less hours, perhaps as they approach retirement. It could also be that some have taken lower pay after being laid off or fired.”

Bank of America added, “In our view, it’s possible some of this may also be a function of the broader labor market slowdown for higher-paying industries. Those who lost their jobs may have to settle for less in a tighter job market, while those who remained are now seeing larger pay rises. It could also be that in a ‘low-hire, low-fire’ environment, companies feel they have less reason to pay a premium to job switchers.” The findings are based on Bank of America’s internal deposit data and ADP payroll records.