Laid-off workers are accepting pay cuts in new jobs

Mass corporate layoffs are leaving white-collar employees scrambling to find their next job, and many are taking pay cuts to stay employed.

A recent analysis by Revelio Labs reveals that 40% of professionals who switched jobs late last year took a pay cut of at least 10%—the highest share in over a decade.

While national unemployment remains low at 4.4%, long-term unemployment, which is being without a job for six months or more, has nearly doubled over the past three years, per government data.

In December alone, 7.5 million unemployed Americans competed for 6.6 million job openings.

The situation has forced even senior professionals to accept junior-level roles. By accepting lower pay, workers risk earning less over their careers, a phenomenon experts call wage scarring.

Meanwhile, employers revel in the abundance of applicants. They have become increasingly selective, often demanding more experience for even entry-level roles.