Changing jobs in a slowing economic climate – do you stay or do you go?

The Australian job market saw unprecedented highs in 2022, marked by record-low unemployment rates and a ‘candidate’s market.’ However, the dynamics are shifting as we step into 2024, prompting the crucial question – in the face of a slowing economic climate, do you stay in your current job or consider making a move?

Navigating Economic Shifts

Before we dive into the decision-making process, it’s vital to grasp the nuances of a slowing economic climate. Unlike a recession, characterized by consecutive quarters of GDP decline, a slowdown is a natural phase post-economic peak. It signals a period of tempered growth that can lead to reduced employment and a slowdown in manufacturing and production.

Impact on Job Seekers

The International Labour Organisation warns of a global shift towards lower-quality, insecure jobs amid an economic slowdown. In contrast, Australia’s economists maintain optimism, attributing the early 2023 uptick in unemployment to seasonal factors. The nation’s 3.7% unemployment rate in October 2023, while relatively low, is expected to rise to 4.5% in 2024, as per the Reserve Bank’s predictions. This forecast raises a cautionary flag, prompting a closer look at underlying economic factors.

Furthermore, although unemployment in Australia can be expected to rise a little more over the course of the year, we must remember, it is still near record-low numbers.

To Change or Not to Change

When it comes to weighing up the pros and cons of changing roles, how far should you consider the economy? While it’s true that if you have a stable and comfortable job, the depth of a recession is probably not a good time to jump ships, staying put isn’t necessarily the right thing to do.

The reasons that most people look to change jobs usually have less to do with global markets and more to do with personal satisfaction or career goals. If you are unhappy or unfulfilled in your current job, you definitely shouldn’t rule out a change!

Pros of Changing Jobs in 2024

    1. Fresh Avenues for Growth: A new job brings forth novel challenges and opportunities for personal and professional advancement.
    2. Industry Stability: Explore sectors resilient to economic slowdowns, such as utilities, healthcare, government, and transportation.
    3. Potential for a Pay Raise: Job hopping has become more acceptable and often proves effective in securing a salary increase.

Cons of Changing Job in a Slowing Economy

    1. Increased Competition: Hiring freezes and economic uncertainty translate to fewer job openings and heightened competition for available roles.
    2. Risk Assessment: Companies may adopt a ‘last in, first out’ approach during uncertain times, posing a risk for new hires.
    3. Long-Term Vision: Evaluate whether the new position aligns with your long-term career aspirations and contributes to your overall professional growth.

Making the Decision

Ultimately, if your current role falls short of meeting your career aspirations or fails to provide the challenges you seek, a change might be in order, irrespective of economic conditions.

Ready to explore new horizons in 2023? Reach out to a member of our team today!