'Disloyalty bonus' for workers who switch jobs

Workers who change jobs are benefitting from a ‘disloyalty bonus’ in the form of bigger pay rises than those who choose to stay put, a study has found.

The Resolution Foundation think tank revealed that those workers who are switching jobs are enjoying pay rises as high as 11%, whereas those workers staying put only received a 2.5% pay rise last year.

Stephen Clarke, senior economic analyst at the Resolution Foundation, said: "As the Bank of England decides whether or not to raise interest rates, the evidence on the key issue of pay pressure is decidedly mixed." (The Bank of England has since increased interest rates for the first time in nearly a decade to 0.75% to 0.5%.)

"For those moving jobs, pay growth has hit 10% for the first time in over a decade," Clarke added. "However, for the vast majority of workers who didn't move jobs in the last year, pay is still struggling along at just 2.5% - barely higher than inflation.”