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What is the Economic Downside of Changing Jobs?

changing-jobs-economic-downsideBy Nicholas Bergan
Faculty Member, Marketing at American Public University

Do you have more responsibilities at work and fewer incentives? Has your job become obsolete with developments in technology or other changes in the field? Do you just think it is time for a new job?

There are many reasons why you might want to look for a new job in the same or another career path. Change can be good, but there are potential economic downsides to changing jobs.

  • Potential loss of income
  • Monetary cost of going to school
  • Lost time with friends and family
  • Cost of child care might increase
  • Weighing the overall increase in salary
  • Decrease in wages while trying to obtain new skills
  • No guarantee of job satisfaction

Let’s examine the real estate market as an example. During the recent recession, the housing bubble burst and many people lost their jobs. Some of these jobs were high-level jobs like mortgage broker and a number of them were entry-level jobs in sales and data entry. As the housing market improves, some of these jobs are coming back, some are no longer needed, and others require new skills.

With the downsides of seeking new employment like time loss, money loss, and opportunity cost, even if your current job is not ideal it may be beneficial to wait until the economy improves and there are more jobs available. In the meantime, you can focus on improving current skills or obtaining new skills by attending school or another type of professional development program in conjunction with your current job.

About the Author

Nicholas Bergan is a full time instructor in the School of Business at American Public University. He has a Masters in Economics from Florida State University and a Bachelor of Science from St. Louis University. Nicholas has worked in the field of Economics since his attendance at St. Louis University where he worked for the Federal Reserve Bank as a Data Analyst. While Nicholas was attending school at Florida State University he worked for the Florida Department of Education as a Management Consultant.

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