<div class="image-container float_right" style="width:400px"><div class="image"><img src="http://static5.businessinsider.com/image/51631bde69bedda332000003-590-443/union-jack-reflection.jpg?maxX=400&amp;maxY=300" border="0" alt="union jack reflection" width="400" height="300" /></div><a href="http://pictures.reuters.com/C.aspx?VP3=SearchResult_VPage&amp;VBID=2C0BXZLEIPOXW&amp;SMLS=1&amp;RW=1515&amp;RH=815">Mike Segar/Reuters</a></div>The U.K.'s economic story for the past five years has been bleak.
Next week we'll find out if the U.K. has entered its first ever triple-dip recession.
Economists project the economy will post a tiny 0.1% - 0.2% growth in the first quarter.
Even if the country does manage to grow a little bit, it's clear that the economy is underperforming.
<a href="http://www.imf.org/external/pubs/ft/survey/so/2013/RES041613A.htm">The IMF lowered its growth forecasts for the U.K. </a>by 0.3% for 2013 and 2014. It now expects the economy to expand just 0.7% in 2013, and 1.5% next year.
This week again we saw the <a href="http://www.bloomberg.com/news/2013-04-17/u-k-unemployment-rises-as-fragile-economy-weighs-on-hiring-1-.html">labor situation deteriorate.</a>
As the U.K. economy continues to skate on the edge between growth and recession, economists have increasingly blamed the current government's commitment to austerity, for the nation's economic woes that began with a <a href="http://news.bbc.co.uk/2/hi/6996136.stm">run on Northern Rock bank in 2007</a>. This was the first run on a U.K. bank in 140 years. 
Since then there have been two recessions 
As the subprime crisis crossed over to the U.K. and liquidity concerns started to hit banks in Europe, Northern Rock was nationalized. This was a time when household savings began to rise, spending declined, the government rolled out austerity, and the financial sector hemorrhaged.
In late 2008, the Bank of England cut interest rates, and announced a <a href="http://www.telegraph.co.uk/finance/recession/4320827/UK-Recession-Timeline-of-how-the-British-economy-has-been-hit.html">£50 billion plan to partially take over major U.K. banks</a>. The U.K. <a href="http://www.parliament.uk/business/publications/research/key-issues-for-the-new-parliament/economic-recovery/recovery-from-recession/">entered a technical recession</a>. Growth declined for six straight quarters tumbling as much as 2.6% in Q1 2009, before emerging from the recession in Q3 2009 with a modest 0.2%. 
The trajectory was very similar to what happened in the U.S. For the year, <a href="http://www.parliament.uk/business/publications/research/key-issues-for-the-new-parliament/economic-recovery/recovery-from-recession/">the economy had contracted 5%</a>. 
<div class="image-container click-to-enlarge" style="width:590px"><div class="image"><a title_source="Societe Generale" title_caption="" class="zoomin" href="http://static2.businessinsider.com/image/5162d9ef69bedd2006000002-960/screen%20shot%202013-04-08%20at%2010.54.00%20am.jpg"><img src="http://static2.businessinsider.com/image/5162d9ef69bedd2006000002-707-428/screen%20shot%202013-04-08%20at%2010.54.00%20am.jpg" border="0" alt="UK GDP chart" width="590" /></a></div>Societe Generale</div> <a href="http://www.guardian.co.uk/business/2012/apr/25/uk-recession-recovery-timeline">In Q4 2009, GDP increased 0.7%,</a> but the spending boost that led this growth didn't reflect an improved household balance sheet or increased consumer confidence. It is believed to have been boosted by consumers picking up spending to avoid the impending hike in value added tax (VAT). 
<a href="http://www.guardian.co.uk/business/2012/apr/25/uk-recession-recovery-timeline">In Q2 2010, GDP increased 1.1%</a>, the fastest pace since 2007. But economists warned (accurately in hindsight) that this was the peak. By Q4 2010 GDP had again contracted 0.5%. And it was at this time that Finance Minister <keyword id="159186" type="PERSON" weightage="60" keywordseo="George-Osborne">George Osborne</keyword> was about to reveal <a href="http://www.cbsnews.com/8301-202_162-6976407.html">£81 billion in spending cuts</a>. 
The austerity was so hard to stomach that over <a href="http://www.guardian.co.uk/society/blog/2011/nov/30/public-sector-strikes-live-coverage#block-18">two million public sector workers</a> went on strike in November 2011. Public sector pensions were at the heart of the dispute. 
By Q1 2012, the U.K. had entered its double dip recession, driven by a decline in construction.
 <div class="image-container" style="width:584px"><div class="image"><img src="http://static6.businessinsider.com/image/516ec16b6bb3f74a28000006-718-450/screen shot 2013-04-17 at 11.36.29 am.jpg" border="0" alt="UK construction " width="584" height="366" /></div><a href="http://www.markiteconomics.com/Survey/PressRelease.mvc/111c85adf26842328ba359fffa70f0d1">Markit Economics</a></div> The austerity experiment that failed
The biggest criticism leveled against Chancellor George Osborne and British prime minister <keyword id="6430216" type="PERSON" weightage="60" keywordseo="David-Cameron">David Cameron</keyword> has been their almost undivided focus on driving down debt and deficit, at the cost of economic growth. 
In 2010, when David Cameron came to power <a href="http://www.businessinsider.com/pundits-wrong-on-uk-austerity-2013-3">he was praised by pundits</a> who said that Cameron was making bold decisions to reduce debt and restore confidence.
Whereas traditional Keynesian economics encourages counter-cyclical spending to address a slump, the Cameron experiment was referred to as an endeavor in "expansionary austerity."
In June 2010, the U.K. <a href="http://www.independent.co.uk/news/uk/politics/emergency-budget-2010-at-a-glance-2007350.html">revealed an emergency budget</a> — a £40 billion plan to cut the budget deficit. This included an increase in value added tax (VAT) to 20%, from 17.5%. The capital gains tax for high savers increased to 28%. It was called 'tough but fair.'
Late that year, Osborne painted a terrifying picture of what would happen if they didn't stick to the deficit plan. <a href="http://www.bbc.co.uk/news/business-21846044">At the time, he said:</a>
"The market turmoil, the flight of investors, the dismay of business, the loss of confidence, the credit downgrade, the sharp rise in real interest rates, the extra debt interest, the lost jobs, the cancelled investments, the businesses destroyed, the recovery halted, the return of crippling economic instability, Britain back on the brink. We are not going to allow that to happen to our country again." 
But in last year's December Autumn Statement (AS), Osborne was forced to admit that the government's austerity had not worked. At the time, he said the economy was not on course to meet its target for when debt would start to fall. Yet, he followed this up by extending austerity until 2018, a year longer than previously forecast.
In January, the IMF's chief economist Olivier Blanchard warned that Osborne should dial down austerity in the new budget. At the time he told Sky News: 
"We've never been passionate about austerity. From the beginning we have always emphasized that fiscal consolidation should be slow and steady. …We still believe that. You have a budget coming in March and we think that would be a good time to take stock and make some adjustments." 
Then in February, the U.K. lost its AAA rating. <a href="http://www.moodys.com/research/Moodys-downgrades-UKs-government-bond-rating-to-Aa1-from-Aaa--PR_266844"></a>
<a href="http://www.moodys.com/research/Moodys-downgrades-UKs-government-bond-rating-to-Aa1-from-Aaa--PR_266844">Moody's attributed the downgrade</a> to, "the increasing clarity that ... the U.K.'s economic growth will remain sluggish over the next few years due to the anticipated slow growth of the global economy and the drag on the U.K. economy from the ongoing domestic public and private-sector deleveraging process."
Moody's also said the weaker growth has limited projected tax revenue increases and impacted the pace of debt and deficit reduction.
<div class="image-container float_left" style="width:303px"><div class="image"><img src="http://static2.businessinsider.com/image/51631c5269beddf332000009-590-443/blanchflower.jpg" border="0" alt="david blanchflower" width="303" height="227" /></div><a href="http://pictures.reuters.com/C.aspx?VP3=SearchResult_VPage&amp;VBID=2C0BXZLEI8SC8&amp;SMLS=1&amp;RW=1515&amp;RH=815">Reuters/David Moir</a></div>"[George Osborne] said the number one benchmark by which this government should be judged is its ability to keep its AAA credit rating,"
<keyword id="252982" type="COMPANY" weightage="60" keywordseo="David-Blanchflower">David Blanchflower</keyword>, economist and former member of the Monetary Policy Committee (MOC), told Business Insider, "Not that I thought it was a sensible thing to focus on that AAA rating, but given that’s what the government said I’m perfectly entitled to judge them according to their own words. And I judge them harshly.”
Blanchflower said that despite the government's efforts to lower deficit and debt, their approach has been all wrong.
"The way to deal with debt is to deal with growth, if you deal with growth the deficit takes care of itself. This government believes if you take care of the deficit, growth takes care of itself and that’s laughable nonsense that’s proved to be untrue."
This chart from Lombard Street Research compares U.S. and U.K. GDP growth and then looks at how the U.K.'s budget deficit compares with America's. As you can see, growth in the U.K. has been substantially worse, where as deficits are not looking any better.
<div class="image-container" style="width:565px"><div class="image"><img src="http://static2.businessinsider.com/image/517020c2eab8ea4834000002-852-671/screen shot 2013-04-18 at 12.35.36 pm.jpg" border="0" alt="US UK GDP growth" width="565" height="447" /></div>Lombard Street Research</div> 
<div class="image-container" style="width:573px"><div class="image"><img src="http://static2.businessinsider.com/image/51701b0b6bb3f7573600000a-861-669/screen shot 2013-04-18 at 11.31.26 am.jpg" border="0" alt="US UK budget deficit GDP" width="573" height="444" /></div>Lombard Street Research</div>
Blanchflower, who has frequently taken Osborne and Cameron to task, wants to see the government do four key things:
<ol>
<li>"Immediately reinstate £20 billion in infrastructure spending, that they cut" and put it towards building homes, schools and so on.</li>
<li>"Completely reverse austerity" – cut the value added tax (VAT) by five percent, reduce payroll taxes. </li>
<li>Give companies incentives to hire and invest.</li>
<li>Set up a small business bank to get money to small and medium businesses.</li>
</ol>
<a href="http://www.businessinsider.com/2013-uk-budget-2013-3">The latest budget</a> however brought with it more austerity.
Most government departments were asked to <a href="http://uk.reuters.com/article/2013/03/19/uk-britain-budget-cuts-idUKBRE92I0I920130319">cut their budgets by an additional 1%</a> in 2013 and 2014, thereby freeing up £2.5 billion for capital spending. This followed a December announcement of 1% cuts in 2013-2014, and 2% in 2014-2015, to the budgets of various departments.
The new budget planned cuts to daily government spending in order to allow for spending in longer-term projects.
<div class="image-container float_right" style="width:298px"><div class="image"><img src="http://static5.businessinsider.com/image/516ec81269bedd0d7400001a-590-443/uk-budget-newspaper.jpg" border="0" alt="uk budget newspaper" width="298" height="223" /></div><a href="http://pictures.reuters.com/C.aspx?VP3=SearchResult_VPage&amp;VBID=2C0BXZLIBKW27&amp;SMLS=1&amp;RW=1430&amp;RH=834">REUTERS/Andrew Winning</a></div>The Bank of England's Remit
Osborne's budget included a review of the Bank of England's remit that gives the central bank more policy tools to boost economic growth without drastically changing monetary policy.
While the new remit maintains the 2% inflation target, it gets around the problem of sticking to the target by "splitting 'shocks and disturbances into those that are temporary, and those that 'may persist for an extended period of time,'" according to Lombard Street Research's Dario Perkins.
<div class="image-container float_right" style="width:388px"><div class="image"><img src="http://static2.businessinsider.com/image/5170306b69bedd217a000002-463-321/screen shot 2013-04-18 at 1.41.37 pm.jpg" border="0" alt="Screen Shot 2013 04 18 at 1.41.37 PM" width="388" height="269" /></div>image</div>"This is official government endorsement for what the Bank has already been doing. In return, the Bank must now make more effort to explain its approach – in particular, by identifying any 'trade-offs' it sees with GDP growth (e.g. 'it's not worth tightening more to bring inflation down because that would hit the economy too hard')."
Moreover, the remit now gives the central bank more freedom in using credit easing, forward policy guidance like the Federal Reserve, and it makes U.K. monetary policy more "microprudential," according to Perkins. "The MPC can now – if it chooses – use interest rates to target financial-sector risks."
Some think this may be too simplistic 
Some like <keyword id="1635157" type="PERSON" weightage="60" keywordseo="David-Tinsley">David Tinsley</keyword>, chief U.K. economist at BNP Paribas, think it's too simplistic to characterize this as a tight fiscal/loose monetary policy problem.
Tinsley told Business Insider that there have been two big impediments to the economic recovery in the U.K.
The first has to do with external factors, like a slowdown in the global economy, which in turn has been a drag on exports. The second, has been the deleveraging in the banking sector. 
What's more, the Financial Policy Committee (FPC) has asked banks to add another £25 billion in capital reserves by the end of 2013. The FPC still thinks that 25% of the U.K. banking sector's assets are in institutions with leverage that is 40 times their equity.
<div class="image-container float_right" style="width:300px"><div class="image"><img src="http://static3.businessinsider.com/image/51631d506bb3f7253100000b-590-443/northern-rock.jpg" border="0" alt="northern rock" width="300" height="225" /></div><a href="http://pictures.reuters.com/C.aspx?VP3=SearchResult&amp;ALID=2C04082SGDRY3&amp;PBC=:2C04082SGDRY3">Reuters/Alessia Pierdomenico</a></div>While this helps strengthen the banking system in the long run, "the push towards larger capital buffers and tighter regulation more generally, almost certainly has negative effects on the supply of credit, wider monetary conditions and the pace of recovery,' writes Jamie Dannhauser at Lombard Street Research.
From Dannhauser:
"The MPC and FPC both complain that the dysfunctional banking system is holding back the rebalancing of the economy and productivity growth. Yet both committees are strongly supportive of measures that at least partly are making banks less willing to lend and finance the small, risky firms that play a key role in the creative destruction process.
But it is not just the asset side of banks’ balance sheets that will be affected; banks’ capital raising, whether this is in the form of new equity issuance, reduced employee compensation or higher profit retention, reduces the quantity of broad money directly, ceteris paribus. Almost uniformly ignored in this debate, this is a key negative side-effect of higher capital requirements for banks and operates in a similar way to asset sales by the central bank, i.e. quantitative tightening.
…But the bigger problem with the FPC’s actions is this – regulators keep moving the goalposts and changing the rules which banks have to play by. Just when banks with large legacy portfolios thought they had returned their balance sheets to health, they are told that more has to be done. What the MPC giveth, the FPC taketh away."
Despite these other drags on the U.K. economy, consensus seems to be that austerity has failed. IMF's Blanchard argues that Osborne is "playing with fire" and that he should "decrease the speed of fiscal consolidation."
Blanchflower is a bit more explicit. "Almost everything this government says; do the opposite ... I would just say, anything they ever say, my default position would be do the opposite."

The Biggest Economic Experiment Of The Last 5 Years Has Ended In Disaster

<ul class="summary-list"><li>A Bank of America Institute report shows the median pay raise for job-to-job movers has cooled.</li><li>Job switching has slowed from its Great Resignation era highs.</li></ul>Here's some less-than-great news if you're looking to <a target="_blank" href="https://www.businessinsider.com/zillennial-job-hopper-decided-to-quit-30s-2024-2">job-hop</a> because of your pay: People <a target="_blank" href="https://www.businessinsider.com/best-tips-for-changing-careers-finding-fulfilling-work-2024-5">changing roles</a> likely won't be getting as big of a wage bump as past job switchers."If you'd have done the same thing a year ago or 18 months ago, you'd have probably got double the pay rise you're going to get today," David Tinsley, senior economist at the Bank of America Institute, told Business Insider.That takes away from one of the main ways people get raises overall: changing jobs for higher pay."You don't change jobs unless you get a pay rise, and firms will pay more for incoming people than they will for their existing employees," Tinsley said. "There's always that going on, but it does seem like there is a weakening in that premium right now."A new Bank of America Institute <a target="_blank" href="https://institute.bankofamerica.com/economic-insights/the-great-hesitation-labor-market.html">report</a> found the median pay gain for those switching jobs was around 20% during the Great Resignation in 2021 and 2022, based on the bank's internal data. However, the report said that "median pay raises appear to have moderated to around 10%" as of this past May.<iframe title="As of May, median pay raises for J2J movers moderatedto 10%" id="datawrapper-chart-G749f" src="https://datawrapper.dwcdn.net/G749f/1/" scrolling="no" frameborder="0" style="width: 0; min-width: 100% !important; border: none;" height="512"></iframe>"People are still moving, but at the same time, the pay rises they're getting are below pre-pandemic levels," Tinsley said. "That seems to suggest there's been a sort of supply shift."He added, "the desire to move jobs might be outpacing the demand from firms to take people right now."The <a target="_blank" href="https://www.atlantafed.org/chcs/wage-growth-tracker">Atlanta Fed's Wage Growth Tracker</a> has also shown pay growth cooling for job switchers since the highs seen in the summer of 2022, based on the three-month moving average of median wage growth.New data out Friday from the <a target="_blank" href="https://www.bls.gov/ces/">Bureau of Labor Statistics</a> suggested wage growth for private employees generally has moderated slightly. Average hourly earnings rose by 3.9% from June 2023 to June 2024, following a year-over-year increase of 4.1% in May.The drops in the median pay raise for job-to-job movers from 2022 to 2024 were felt across workers in all income groups, the Bank of America Institute found. Still, the report noted that lower-income Bank of America customers — those making under $50,000 a year — had the highest median pay gains. Meanwhile, the medians for middle- and higher-income job changers aren't even in the double digits anymore.<iframe title="Median pay growth for J2J movers for higher- andmiddle-income customers is below 2019 levels" id="datawrapper-chart-ftSdN" src="https://datawrapper.dwcdn.net/ftSdN/1/" scrolling="no" frameborder="0" style="width: 0; min-width: 100% !important; border: none;" height="513"></iframe>The report said that those middle- and upper-income job seekers may "have somewhat less leverage and <a target="_blank" href="https://www.businessinsider.com/pay-job-salary-resesarch-bonus-compensation-negotiation-2023-9">bargaining power</a> in negotiating a raise on taking a job."Tinsley linked that drop to turbulence in some particularly high-paying sectors. "Obviously, there was a shakeout of jobs in tech and to some extent in finance last year, and I guess that has probably backed a little of the bargaining power out of those areas," Tinsley said.The report also shows that job-hopping might be slowing down. Recent <a target="_blank" href="https://www.bls.gov/jlt/">Bureau of Labor Statistics data</a> also showed that the quits rate has consistently been 2.2% for seven months, and the quits level was around 3.5 million in May, far below its Great Resignation high of 4.5 million in April 2022.Still, Tinsley said there still is a reasonable rate of job-to-job changes happening even with the pullback in raises. He said there's a risk and a reward when people change jobs. The risk, he explained, could be the track record you have to build up at your latest workplace, while the reward could be related to money.The job-changing data implies there are still some optimistic job searchers in the still-strong <a target="_blank" href="https://www.businessinsider.com/unemployment-rate-job-growth-june-economic-data-2024-7">labor market</a>."Another way of thinking about it is if you move jobs and that job doesn't work out, are you confident that you could move jobs again? And when the labor market's in reasonable shape, then people will have that confidence, and that still seems to sort of be the case in our data," Tinsley said.Have you made a job change, and how did the pay and benefits compare to your previous role? Are you an employer or recruiter finding job candidates' expectations for pay have changed? Reach out to this reporter to share at <a target="_blank" href="mailto:mhoff@businessinsider.com">mhoff@businessinsider.com</a>.

Why no one is getting big raises anymore

<ul class="summary-list"><li>Stadium events are giving US cities a huge economic boost, the Bank of America said.</li><li>In a research note, the bank compared two Taylor Swift concerts with Super Bowl LVII.</li></ul>If your city can't host the Super Bowl, a Taylor Swift concert or two might be the next best thing, financially speaking.That's according to Bank of America, which compared the economic impact of football's flagship game with the pop superstar's "Eras Tour" in a <a target="_blank" href="https://institute.bankofamerica.com/content/dam/bank-of-america-institute/economic-insights/consumer-morsel-during-live-events.pdf">research report</a>.When Pittsburgh hosted two Swift concerts in June 2023, average household spending in restaurants and bars rose by $77 and $56 respectively that month, economists Taylor Bowley and David Tinsley found.In comparison, households spent $96 more in restaurants and $74 more in bars when Glendale, Arizona, hosted Super Bowl LVII last year, the bank said."Of course, every event is unique and draws in different audiences, but it is clear from this that stadium events can provide a useful boost to local spending," Bowley and Tinsley said.The economy expanded much faster than forecasters were expecting last year, with post-pandemic "<a target="_blank" href="https://www.businessinsider.com/taylor-swift-funflation-live-concerts-economy-bank-of-america-2023-10">funflation"</a> driving above-par growth.People appear to be more willing to splash the cash on <a target="_blank" href="https://www.businessinsider.com/taylor-swift-beyonce-gen-z-millennials-live-events-status-symbol-2023-12">tickets for live events</a> after years of lockdowns, in a phenomenon that Bank of America calls "revenge spending.""Consumers seeking to make up time lost during the pandemic by splurging on experiences and entertainment," Bowley and Tinsley wrote. "Perhaps most notably, major live events appear to be reaping the benefits."In June, survey firm <a target="_blank" href="https://www.businessinsider.com/taylor-swift-eras-tour-boost-europe-economy-hotels-flights-2024-1#:~:text=In%20June%2C%20survey%20firm%20QuestionPro,food%20and%20drink%2C%20and%20tickets.">QuestionPro</a> estimated that the first leg of Swift's "Eras" tour could generate $4.6 billion in consumer spending, with the average concertgoer forking out $1,300 per show on travel, merch, food and drink, and tickets.The Federal Reserve also highlighted Swift's impact on the economy in its <a target="_blank" href="https://www.federalreserve.gov/monetarypolicy/beigebook202307.htm">July Beige Book</a>, which pointed out that three Philadelphia shows had lifted hotel revenues in May."Despite the slowing recovery in tourism in the region overall, one contact highlighted that May was the strongest month for hotel revenue in Philadelphia since the onset of the pandemic, in large part due to an influx of guests for the Taylor Swift concerts in the city," the central bank said.As well as the "Eras" tour, economists have also flagged the <a target="_blank" href="https://www.businessinsider.com/taylor-swift-barbie-oppenheimer-beyonce-economy-gdp-growth-jobs-report-2023-10">"Barbenheimer" box-office craze</a>, Beyoncé's "<a target="_blank" href="https://www.businessinsider.com/hot-girl-summer-inflation-taylor-swift-beyonce-barbie-economy-2023-8">Renaissance" concerts</a>, and <a target="_blank" href="https://www.businessinsider.com/taylor-swift-made-nfl-more-popular-in-america-us-2023-9">the National Football League</a> as live events that boosted consumer spending last year.

When Taylor Swift swings by, the financial boost could be almost as big as hosting the Super Bowl, says Bank of America 

<ul class="summary-list"><li>Americans are still leaving their jobs, with 4.4 million people quitting in April alone.</li><li>Gen Zers have benefited the most in the <keyword id="12122646" type="UNKNOWN" weightage="60" keywordseo="great-resignation" source="Orion">Great Resignation</keyword>, per LinkedIn and Bank of America data. </li></ul>Gen Zers are winning the <a href="https://www.businessinsider.com/americans-quit-at-near-record-rate-great-resignation-forever-resignation-2022-6">Great Resignation</a>.They're the generation more likely to switch jobs and are landing the biggest pay increases when they do, according to a <a href="https://business.bofa.com/content/dam/flagship/bank-of-america-institute/economic-insights/who-is-benefiting-from-the-us-labor-market-may-2022.pdf">report</a> from the Bank of America Institute and data from LinkedIn provided to Insider.And even more young professionals are thinking about handing in their resignation letters in the next two years, based on a global survey from <a href="https://www2.deloitte.com/content/dam/Deloitte/at/Documents/human-capital/at-gen-z-millennial-survey-2022.pdf">Deloitte</a> — although the share who said this is down from last year's result, signaling that the Great Resignation could be slowing a bit after a year of record-high quits.But for now, <keyword id="11974765" type="UNKNOWN" weightage="60" keywordseo="gen-z" source="Orion">Gen Z</keyword> is taking advantage of the labor shortage and their flexible position in life to find the right job for the right money.<h2>Gen Zers who are changing jobs are taking home more pay</h2>Recent data from LinkedIn, where Gen Z is defined as ages 20 to 24, shared with Insider shows Gen Z job transitions in April 2022 were 29.5% higher than a year earlier. That's roughly 20 percentage points higher than the 9.6% increase millennials saw, according to the LinkedIn data. Gen X job transitions were 8% higher in April 2022 than in April 2021. Bank of America internal data shows a similar story, where roughly a quarter of Gen Z, those up to age 25, have job-hopped over the past six months, the highest share among <keyword id="12030169" type="UNKNOWN" weightage="60" keywordseo="generations" source="Orion">generations</keyword> during this period.<iframe title="Bank of America customers who have changed jobs over the past six months" id="datawrapper-chart-ShBZE" src="https://datawrapper.dwcdn.net/ShBZE/2/" scrolling="no" frameborder="0" style="width: 0; min-width: 100% ; border: none;" height="450"></iframe>Karin Kimbrough, the chief economist at LinkedIn, said in a statement that "it's normal for career starters to be in an experimental phase where they're still figuring out what they want out of a job, and aren't always ready and willing to settle." Jason Dorsey, who researches Gen Z, told <a href="https://ca.finance.yahoo.com/video/gen-z-workers-perfect-time-203804328.html">Yahoo Finance</a> that "it's really a perfect time for them to make that jump." For one, he said the generation "have the least responsibility in terms of family, child, houses, cars, and so forth."The Bank of America Institute report found that "the average pay rise associated with job moves," based on annual pay data from May 2021 to April 2022, is around 17.6%."In other words, and perhaps unsurprisingly, it has paid off to move jobs," the report said.For Gen Zers, this pay increase is 29.7%, the highest percentage among generations, according to Bank of America data. <iframe title="Annual pay increases for those who have changed jobs, May 2021-April 2022" id="datawrapper-chart-qX74w" src="https://datawrapper.dwcdn.net/qX74w/1/" scrolling="no" frameborder="0" style="width: 0; min-width: 100% ; border: none;" height="450"></iframe>But it's not just young workers switching jobs who are seeing more money in their bank accounts. Internal data of annual pay growth from May 2021 to April 2022 shows that, in general, Gen Zers are seeing higher pay bumps compared to other generations. <iframe title="Annual pay increases, May 2021-April 2022" id="datawrapper-chart-0l5DX" src="https://datawrapper.dwcdn.net/0l5DX/2/" scrolling="no" frameborder="0" style="width: 0; min-width: 100% ; border: none;" height="450"></iframe>David Tinsley, the director of the Bank of America Institute, told Insider that Gen Zers' level of education could be related to higher pay."Some of the Gen Z rise will simply reflect that people in this group are embarking on their career journeys from education, which inevitably involves significant pay changes," the Bank of America Institute report said. Millennials are also seeing pay growth above the average of 9.2%. Tinsley said millennials may have in-demand skills that companies want, and it could also be because of "the big rotation away from goods spending into services spending." He said that service industries like travel, entertainment, and leisure tend to hire younger workers.<h2>Young professionals are thinking critically about whether a job actually fits what they want</h2>Regardless of changing jobs, Gen Z are thinking about the jobs out there, the benefits they offer, and the duties they entail."The notion that they are just 'flighty' is a mischaracterization — from what we hear from Gen Z members on LinkedIn, they are thoughtfully evaluating the pros and cons of each opportunity and are willing to leave for a company that better aligns with their values and invests more in skills development and career growth," Kimbrough said. "In this tight labor market we're in, the bargaining power is still tilted in favor of the worker, and Gen Z is well aware of that."According to a <a href="https://www2.deloitte.com/content/dam/Deloitte/at/Documents/human-capital/at-gen-z-millennial-survey-2022.pdf">global Deloitte Gen Z and millennial survey</a>, 37% of Gen Z and 36% of millennials said "they have rejected a job and/or assignment based on their personal ethics." They also won't stick around if they have to head back to office desks. A global survey from <a href="https://www.adpri.org/wp-content/uploads/2022/04/PaW_Global_2022_GLB_US-310322_MA.pdf">ADP Research Institute</a> found that Gen Z is more likely to think about a new job if their company requires them to come back to the office full time."This group is certainly job-hopping at an even higher rate than we might expect, and when we survey LinkedIn members, Gen Z stands out as the group most likely to walk away from a job if it doesn't offer certain benefits like a flexible work policy," Kimbrough told Insider.Deloitte and the Network of Executive Women noted in a recent report that employers are going to need a "different mindset" for hiring and retaining Gen Zers."Employers will need to understand the behaviors and tendencies of a generation that expects much more personalization in how they want to be treated by their employer and is seeking more than just filling cookie-cutter roles," the authors <a href="https://www2.deloitte.com/us/en/pages/consumer-business/articles/understanding-generation-z-in-the-workplace.html">wrote</a>.<h2>Regardless of age, the labor market is hot for job seekers</h2>Tinsley said that despite some signs of cooling, "the labor market for most generations, but particularly the younger age groups, have been white-hot." Businesses have been increasing pay and offering other benefits to find and retain workers. According to the <a href="https://business.bofa.com/content/dam/flagship/bank-of-america-institute/economic-insights/who-is-benefiting-from-the-us-labor-market-may-2022.pdf">Bank of America Institute report</a>, the pay increases may not last, though, and that job changes "may now have peaked."Daniel Zhao, a senior economist at Glassdoor, previously told Insider the labor market situation looks "healthy" for people looking for jobs. But he warned that this isn't permanent. "This is still a labor market that leans towards workers," Zhao <a href="https://www.businessinsider.com/hiring-job-openings-april-jolts-economic-recovery-labor-shortage-data-2022-6">previously said</a>. "There's no guarantee that that will last forever, but generally speaking, what I tell job seekers is that this is a good time to look for a new job and try to lock in those gains while the labor market is still strong."Are you a Gen Zer who has quit or is thinking about quitting your job? Contact this reporter at mhoff@insider.com.

How Gen Z is winning the Great Resignation, from pay increases to better work-life balance

<div class="image-container float_right" style="width:400px"><div class="image"><img src="http://static1.businessinsider.com/image/5148f86f6bb3f7f36900000c-2731-2048/big-ben-london-2.jpg?maxX=400&amp;maxY=299" border="0" alt="Big Ben, London" width="400" height="299" /></div><a href="http://pictures.reuters.com/C.aspx?VP3=SearchResult_VPage&amp;VBID=2C04WNV6E9BLF&amp;SMLS=1&amp;RW=1391&amp;RH=786#/SearchResult_VPage&amp;VBID=2C04WNV6E9BLF&amp;SMLS=1&amp;RW=1391&amp;RH=786&amp;PN=3">REUTERS/Luke MacGregor</a></div>UK chancellor George Osborne is presenting the 2013 <keyword id="6358021" type="PERSON" weightage="60" keywordseo="budget">Budget</keyword> to parliament at 12:30 GMT (8:30 a.m. ET).
UK watchers widely agree that this budget could help restore or further erode the government's credibility.
Osborne is expected to stick to his plan for austerity <a href="http://www.ft.com/intl/cms/s/0/1670a3d2-880f-11e2-8e3c-00144feabdc0.html">(despite the backlash)</a>.
He has already asked most departments to <a href="http://uk.reuters.com/article/2013/03/19/uk-britain-budget-cuts-idUKBRE92I0I920130319">cut their budgets by an additional 1 percent</a> in 2013 and 2014, thereby freeing up £2.5 billion for capital spending. In December, he announced cuts of 1 percent in 2013-2014, and 2 percent in 2014-2015, to the budgets of various departments.
Here's a quick round-up of what analysts are looking for:
BNP Paribas - The Focus of the Budget will be monetary not fiscal policy 
Paul Mortimer-Lee and David Tinsley, don't expect the Office for Budget Responsibility (OBR) to make huge changes to their forecasts since the Autumn Statement (AS) was issued recently (on December 5).
The current forecast is for 2013 growth of 1.2 percent, this could be lowered to 1 percent. They expect growth of 0.7 percent. It is unlikely that they will make adjustments to forecasts for the following years. The biggest revision will probably be to inflation.
Osborne does however have room to ease, because the end of the forecast period for the AS is 2017/18, and because, for that year, the AS forecast sees "cyclically adjusted current surplus at 0.9% of GDP."
"Because achieving a cyclically adjusted surplus by, say, 0.1% or 0.2% of GDP would be perfectly consistent with meeting the fiscal mandate, the Chancellor could, potentially, announce a discretionary easing of the fiscal stance worth 0.7% of GDP, or around GBP 10bn, and still meet his fiscal mandate.
Whether the Chancellor will decide to pursue such a policy is largely about politics. On the one hand, such a policy could look like an obvious deviation from ‘Plan A’. But on the other, with the political arithmetic stacking up against the parties in the coalition, this Budget may be time to make some selective easing of policy in the hope that some of the ‘feel-good’, or at least ‘feel-better’ factor starts to affect the electorate in time for the 2015 general election."
Other things to watch for:
<ul>
<li>Delay in fuel duty hikes as a "gesture to ‘hard-pressed’ households."</li>
<li>With the focus on monetary policy the budget is likely to review the Bank of England's remit, to give it room to loosen policy despite higher inflation. He can do this by widening the band for inflation.</li>
<li>"The change that would probably give the MPC the most discretion would be to augment the inflation objective with a growth objective, in other words, to give the Bank of England a ‘dual mandate’ akin to the Federal Reserve’s."</li>
<li>Gilt sales are expected to be £164 billion in 2013-14 because of disappointing tax revenue. </li>
</ul>
Societe Generale - George Osborne will have his hands tied 
The fact that markets didn't really react to 1. The OBR's prediction that the UK would fail to meet its debt mandate. 2. The Moody's downgrade, has given Osborne the "confidence to allow a little more slippage in the fiscal path," writes Societe Generale's Brian Hilliard. 
"The Chancellor is facing criticism from many quarters but his room for maneuver is extremely limited. We expect the OBR, yet again, to lower its growth forecasts and to raise its deficit forecasts. Mr Osborne has already let the debt mandate slip in the 5 December Autumn Statement (AS). This is certain to remain the case in the Budget so a further deterioration in the public finances should not trigger a significant policy reaction in terms of further tightening. Moreover, any tightening that is announced should relate to the years after the election and so will have little effect on the short term growth outlook."
Things to watch for:
<ul>
<li>In his speech Osborne is expected to say that the OBR has lowered its growth forecast below 1 percent. Deficit forecasts will likely be increased. "Revisions to the forecasts of the actual deficit path ...will be largely the result of the lower growth forecasts."</li>
<li>Osborne should add a "little more austerity in 2017-18 but nothing more".</li>
<li>UK economic policy will likely continue to be: tight fiscal-loose monetary policy.</li>
<li>A review of the inflation target regime.</li>
</ul>
David Blanchflower - "Almost everything the government says, do the opposite"
Ahead of the UK Budget, Blanchflower Business Insider that the government should immediately reinstate 20 billion on infrastructure spending, reverse austerity, and cut taxes. "My preferred option would be cut VAT immediately by 5 percent tonight, reduce payroll taxes, and give firms incentives to hire and invest." He said his "default position would be to do the opposite" of what this government is doing.
As the UK teeters on the edge of a triple dip recession, and stands stripped of its AAA rating, people want to see Osborne fired.
A poll by ComRes Ltd. for ITV News, via Bloomberg, showed that 44 percent of voters want him gone, and 54 percent think his budget cuts are unfair. Tomorrow's budget is expected to show that despite such sentiment, Osborne will stick to his austerity plans.

You Searched For "David Tinsley" and got 5 results

The Biggest Economic Experiment Of The Last 5 Years Has Ended In Disaster

Mamta Badkar

Why no one is getting big raises anymore

Madison Hoff

When Taylor Swift swings by, the financial boost could be almost as big as hosting the Super Bowl, says Bank of America

George Glover

How Gen Z is winning the Great Resignation, from pay increases to better work-life balance

Madison Hoff

The UK Government Is About To Reveal Its 2013 Budget - Here Are The Key Issues To Watch

Mamta Badkar