Changing careers is more common today than ever before. But, why are employees switching careers, and how often do people change jobs? More importantly, what can you do to retain talent or ensure that you have your pick of new candidates who may be a good fit for your company? Here are 19 career change statistics you need to know in 2024.
Key Takeaways:
- Women and minorities are the most likely to leave the workforce.
- Gen Zs are not afraid to change jobs if they are offered better work-life balance.
- Only 9% of workers are doing their dream job.
- Better pay and work flexibility are the biggest factors for people changing jobs.
General Career Change Statistics
1. Over half of workers are open to leaving their employers
If you’re not actively working to keep your employees, you might lose them. According to a survey by GO Banking Rates, 57.65% of workers are planning a major career change in 2024. Meanwhile, 11.93% are planning to get a new full-time job or change careers. Taking steps to lower your employee turnover rate even a bit can save your company time and money.
(Nasdaq)
2. The average American has held around 12 jobs by the time they’re 56
This data shows that the average American has frequent career changes throughout their working life. Additionally, the report also showed that those who started working between the ages of 35 and 44 had 25% of their jobs end in less than a year.
(Bureau of Labor Statistics—National Longitudinal Survey of Youth)
3. 4 in 10 moms are likely to change careers because of childcare
The numbers reveal the significant impact balancing work and family responsibilities has on women’s career decisions. With limited childcare options available, women are more likely to quit their jobs in favor of taking care of children.
(Catalyst)
4. Minorities have higher workplace turnover
White workers are about 28% more likely to stay at a company for at least 10 years. Only 22% of Asians, 24% of African-Americans, and 21% of Hispanics have been with their company for a decade or more. While you need to ensure all of your employees get the support they need, paying attention to the needs of your minority employees may help reduce turnover through better inclusivity.
(BLS—Employee Tenure Summary)
Employee Tenure Statistics
5. The average worker tenure is just over 4 years
According to the Bureau of Labor Statistics (BLS), the average worker tenure is about 4.1 years. This survey is only conducted every two years, so these data reflect early 2022 tenure levels. Given the tumultuous workforce disruptions since then, it’s likely that this number is now much lower.
(BLS Employee Tenure Summary)
6. Worker tenure is just 2.8 years for the service industry
The average tenure in the service industry is just 2.8 years, the shortest of any industry. In addition, workers aged 25 to 34 have an average tenure across industries of just under three years. The younger your employees are, the more likely they are to move to a new company quickly.
(BLS—Employee Tenure Summary)
7. Less than half of workers have a job in their degree field
According to this survey, a significant number of workers (54%) don’t have jobs related to their degree. And only about half of respondents were hopeful of finding a well-paying job in their field; an almost equal percent was not hopeful. This shows that you don’t need to rely so much on a person’s educational background when you’re hiring. Instead, focus on skills-based hiring and a candidate’s proven workplace experience or passion. That’s often a better indicator of an employee’s potential success than education.
(Intelligent)
Workplace Satisfaction Statistics
8. 50% of Gen Zs will reject an employer or project if it does not align with their values
Gen Z has the lowest work-life balance satisfaction of any generation in the workforce. Today, workers want to be supported by their organization, and part of that means providing employees with the time and energy to live their lives outside of work. While this may not be acceptable to the hustle culture, you’re more likely to attract high-quality employees by providing benefits that support a balanced work-life relationship.
(Deloitte)
9. Two-thirds of workers say they’re not paid enough
Not only do they say they’re not paid enough, but they’re not paid enough to keep up with inflation. Because of this trend, it is extremely likely that workers will leave your company for even a slight bump in pay. Additionally, according to LendingClub, 64% of US workers live paycheck to paycheck. Even high earners are having problems—nearly half of people earning over $100,000 annually say they live paycheck to paycheck.
(Credit Karma)
10. Just 9% of workers are in their dream career
That means 91% of the US workforce are unhappy in some way with their jobs or are not in what they consider their “dream jobs.” Even before the pandemic, many workers were unhappy in their jobs and sought a change. While most people find at least some parts of their job unenjoyable, having a happy career makes for a more productive environment. If you find your employees seem disconnected and disengaged, consider working with them to develop their careers and skills to provide a better environment for them to thrive.
(Moneypenny)
Statistics on Worker Priorities
11. One in five workers would take a pay cut for a better work-life balance
Based on survey results, 20% of employees would take an average pay cut of 10% if it meant finding a job with a better work-life balance or if they could work for themselves. In fact, one-third of workers who have changed careers in the pandemic took a pay cut to have a job that gave them better work-life balance. Even though money is important, workers want flexibility and a life outside of work. If your company isn’t providing that, consider making changes to better support and retain your employees.
(Prudential)
12. 54% of working parents put flexibility over pay increase
Working parents with children under 18 would choose better workplace flexibility over higher pay. While increased salary comes in a close second, if you can provide your workers with flexible work schedules and locations, you’re likely to have a better chance of retaining them—and it won’t cost you as much as increasing salaries.
(Bankrate)
13. 62% of employees want better workplace stability
More than 60% of employees looking for new jobs are looking at larger or more established companies rather than startups, which is indicative of the desire for more stability after the pandemic uncertainty. But, this doesn’t mean that small businesses or startups can’t attract high-quality employees. If you are able to show that you have a stable product and company, you can still attract and retain top talent.
(Prudential)
14. 58% of employees want to work remotely at least three days per week
This goes back to what employees desire above all else: workplace flexibility. Employers often have a resistance to allowing remote work, but where possible, giving your employees flexibility to work remotely even part of the week can go a long way to gaining their trust and loyalty, reducing your attrition. Four in five surveyed employees want to work remotely two days or more weekly.
(USA Today)
15. 1/3 of companies are anticipating higher employee turnover
According to a press release by Express Employment Professionals, the top reason (38%) for the increase in turnover rates is because of better pay and benefits offered elsewhere. Aside from better pay, the next reason is the increased workplace demand.
If you’re worried about employees leaving or have already seen increased attrition rates, it’s worthwhile to re-evaluate your pay bands and possibly increase salaries where you can—it could make a substantial difference.
(Express Employment Professionals)
16. 14.5% of workers change careers for upward mobility
Many employees feel stagnant in their jobs, so they look outside the company for promotion opportunities and upward mobility. This often comes with a raise, so workers achieve two objectives with one move. Investing in a strong training and development program and then providing the opportunities for skilled employees to advance can improve your employee satisfaction and retention and help your business fill needed roles with the best candidates.
(Indeed—Why This Will Be the Year of Career Switching)
17. 14.5% of workers change careers because of poor management
Not unrelated to the results above, the same Indeed survey found that 14.5% of workers leave their company to escape a toxic work culture or a bad boss. The old adage is true: workers don’t quit companies; they quit bosses. If you have high attrition in one department, it might be worth looking into the manager of the team, as they may be ineffective and cause people to leave.
(Indeed—Why This Will Be the Year of Career Switching)
Careers and Industries with the Most Openings
18. Wind turbine service technician is the fastest growing job in the next decade
According to a news release by the BLS, wind turbine technicians are expected to see the highest increase in new job creation between 2022 and 2032. Additionally, more than 1,800 job openings for wind turbine technicians are projected each year. The increase is to replace workers who are retiring or transferring to new careers.
(BLS—Fastest Growing Occupations)
19. Registered nurse is the most in-demand high-paying job
According to Indeed, a registered nurse is the most in-demand profession with 15,663 job postings per one million search results. The shortage is a result of two primary factors: shortage of nursing faculty causing nursing schools to limit their admissions and the number of nurses who are planning to quit.
(Indeed—25 High Paying In-Demand Jobs)
Reasons Why People Make a Career Change
There are many reasons why people change careers. If you look at the statistics we presented in this article, one common factor is that an employer is unwilling or unable to make changes. Aside from this, here are the other reasons that compel people to shift careers as well as some suggestions to help your company avoid increased attrition as well as attract talent leaving other companies:
1. Want a larger salary
According to a report by Owl Labs, 84% of people change careers because they want better compensation. People often seek higher paying jobs to ensure financial stability and security, allowing them to save more, invest, and meet long-term financial goals. Another reason for this is the rising cost of living, which can push people to pursue better compensation to afford housing, education, healthcare, and other necessities.
2. Looking for a better work-life balance
Many employees experience burnout from long hours, high stress, and lack of time for their personal lives. Seeking a career with more manageable hours or remote work options can provide a healthier balance between professional responsibilities and personal life.
3. Lack of appreciation and recognition
Employees may feel undervalued if their efforts and contributions are not acknowledged, which can lead to dissatisfaction and the desire to work where they feel appreciated. This feeling of unappreciation can even become stronger if employees work in negative work environments, such as lack of support, toxic work culture, or unfair treatment, driving people to seek a more respectful and supportive workplace.
4. Start their own business
Many individuals want to start their own businesses for different reasons. Some aspire to be their own boss, while others want to pursue their passions or the potential for significant financial rewards. They seek control over their work environment, schedule, and work-life balance.
Types of people who do this include those with entrepreneurial spirits, creative individuals wanting to turn their ideas into reality, professionals with niche expertise looking to capitalize on their skills, and those disillusioned with corporate structures seeking more autonomy and flexibility.
5. Gain experience
People change careers to gain experience because it allows them to acquire new skills, broaden their knowledge, and enhance their professional versatility. Transitioning to a different career can expose them to diverse challenges and learning opportunities, making them more competitive in the job market.
Your company has the ability to make changes to better support your team, increasing the likelihood that your business is less affected by employees leaving. Here are some quick ideas that can help your company avoid increased attrition while also attracting high-quality talent:
- Offer remote work options.
- Increase your paid time off benefits.
- Allow local employees the flexibility to work from home at least two days per week.
- Give employees a commuter stipend.
- Have regular employee retreats to build rapport.
- Regularly review and update pay bands.
- Create a development plan for every position so employees see their upward mobility track.
- Offer parental workplace benefits.
- Provide a remote work stipend.
Why People Won’t Make a Career Change
While there are people who are dreaming of a new career, there are also those who would prefer to stay in their current jobs despite the difficulties or challenges they face. Here are a few reasons why people won’t change careers:
- Fear of losing a stable income
- Fear of failure in a new field or role
- Loss of seniority and benefits
- Worries of not having the skills or experience
- Preference for the familiarity of their current job
- Concerns about how a new career will impact their personal life
- Lack of confidence in their ability to adapt
- Belief that they might be too old to start anew
Bottom Line
While COVID-19 made many employees re-evaluate their careers, people don’t seem to be slowing down on this trend of career changes. Some of these career change statistics may give you pause, but it’s important that you and your HR team know what to look out for so you can make proper adjustments to your company. Making changes can help you retain your employees, attract new ones, and keep your business thriving.
References: Nasdaq, BLS ( Employee Tenure Summary, National Longitudinal Survey of Youth,Employment Projections 2023-2032, Fastest Growing Occupations) Catalyst 2023 Survey, Intelligent 2022 Survey, Deloitte, Credit Karma 2022 Study, Moneypenny (2023), Prudential—2022 Pulse of the American Survey,Bankrate 2023 Job Seeker Survey, USA Today, Express Employment Professionals, Indeed (Why This Will be the Year of Job Switching, Top Jobs in 2023)
