It's time to get cautious about the Great Resignation and 'take educated risks.' The job market could slow down soon.

PixelsEffect/Getty Images

• Daniel Zhao, an economist at Glassdoor, said it's "still a good time to find a new job."
• But for job switching, Zhao said "it is important to take educated risks" with things seeming to slowdown.
• The US added 315,000 nonfarm payrolls in August, and there were 11.2 million job openings in July.

The job market may still be hot, but job switchers thinking about throwing in the towel should do their research before quitting, according to one economist. 

Data out Friday from the Bureau of Labor Statistics showed the US added fewer jobs in August than July: 315,000 versus 526,000. However, job openings remain high, with data out earlier this week showing 11.2 million in July, and the job market can still be described as "very hot," Daniel Zhao, lead economist at Glassdoor, told Insider.

"Even though things are cooling down, this is still a good time to find a new job, especially as inflation eats up wage gains," Zhao said. "One of the best ways to get a raise that beats inflation is to switch jobs. That's often when workers have the most leverage."

However, workers looking to quit and move on to a new job may need to be extra cautious.

"The caveat I would add is it is important to take educated risks," Zhao said. "Because right now, the job market is hot, but it does seem like things are slowing down. So it's just important for workers to do their research, understand whether the company that they're going to is financially stable or in an industry that should continue to grow."

Some tech companies, for instance, have been laying off workers. Not all layoffs are being announced by tech companies though, such as at Ford and 7-Eleven. Insider's Shriya Bhattacharya reported in May that changing jobs may be more difficult as some companies have been slowing or even putting a pause on hiring altogether. 

Alison Sullivan, Glassdoor career trends expert, previously said in a statement to Insider in July that "it's important to carefully evaluate your next steps" before quitting a job.

"No one wants to find themselves with quitter's remorse," Sullivan said. "That can happen when a new job or company isn't what you expected. This is why it's critical to conduct research when making these career decisions."

Over the last year, millions of people have left their jobs and joined in the Great Resignation for reasons like better pay. And although some people may have Great Resignation regret, a move may have some positive effects for workers.

"I think my hope is that in the long term, the Great Resignation is a reminder to workers that they have leverage," Zhao said. "That they can use quitting as an opportunity to find better opportunities, negotiate better raises. So I think that there is a potential long-term impact from the Great Resignation as a confidence booster for American workers."

Current employees can also use leverage in their job so they don't have to hand in their resignation letters, as CNBC reported. That includes asking for a promotion or raise. 

AnnElizabeth Konkel, an economist at Indeed Hiring Lab, told Insider after Friday's jobs report that "we continue to see employers have demand for workers" and that "workers continue to be able to have choices."

In short, Konkel described the labor market as a strong one for workers.

"Overall the labor market is still healthy," Zhao said. "We are seeing the job market cool slightly, consistent with how the overall economy is slowing."

Read the original article on Business Insider

from Business Insider https://ift.tt/QSCxFM4