Inflation is at a 40-year high, which is squeezing many households financially. About 65% of Americans say they’re living paycheck to paycheck. My spouse and I are feeling the pinch as well. It’s been harder to keep up with our savings goals due to rising costs like gas. We went from spending less than $200 per month on gas to $500 per month practically overnight.
Personal finance experts recommend cutting out unnecessary expenses to offset price increases. However, if you live frugally, you probably don’t have a lot of indulgences you can remove from your monthly budget.
That’s the situation we’re in. We either need to adjust our financial goals or find a way to bring in more income, which is why my partner has been considering job hopping for higher pay. But if there’s a recession just around the corner as economists warn, is it safe to job hop right now?
Is Now a Good Time to Job Hop?
Right now the job market is very strong. The unemployment rate is low and companies are having a hard time finding workers. According to the Labor Department, there are 5.5 million more job openings than available workers to fill them. So it may be a good time to job hop. It probably won’t take you long to get hired at a new company due to labor shortages. And since employers are struggling to find workers, you’ll be in a good position to negotiate higher pay and get the salary bump you want.
However, many economists are saying that there’s a recession on the way. When companies start laying off workers, they usually let go of the last few people they hired first. So if you leave your current position for a new role now, you could be increasing the chances that you’ll be laid off if a recession hits in 2023.
Whether or not now is a good time to job hop all depends on the level of risk you’re comfortable with. If you have a big emergency fund or work in an industry that’s fairly recession-proof like healthcare, you may feel like you can afford to take a chance and job hop. But if you’re pretty risk-averse like my partner and I, it may be better to stay put where you are and find other ways to boost your income.
Consider Getting a Side Hustle Instead
If you don’t feel safe leaving your job for a new position with higher pay, you can start up a side hustle instead. Companies that can’t find workers to fill open positions may turn to freelancers for help with overflow work. So it probably won’t be hard for you to find clients even as a new freelancer, whether you choose to go into web development, graphic design, writing, or another field you’re passionate about.
I’ve dabbled with photography and selling photos of recipes to food bloggers. But my partner and I have decided to ramp up this side hustle to bring in some extra income instead of job hopping. We live in a rural area, so we don’t have gig apps. But if you live in a more populated place, you could join Uber, TaskRabbit, or Instacart to make some side cash.
There are lots of ways to generate extra income to lessen the impacts of inflation on your budget—you just have to get a little creative.
Wrapping Up
Are you planning to job hop for higher pay and become part of the Great Resignation? Or are you satisfied with your current role and salary? Let me know in the comments section below!
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Vicky Monroe is a freelance personal finance and lifestyle writer. When she’s not busy writing about her favorite money saving hacks or tinkering with her budget spreadsheets, she likes to travel, garden, and cook healthy vegetarian meals.