GovTech: stability wins over pay
- GovTech reported Sunday that repeated tech layoffs are pushing workers to favor durable employers over top-end pay, recasting hiring in government and other steadier sectors as private-sector candidates pull back from risk. - The clearest marker is a shrinking reward for switching jobs: movers saw median pay gains of about 4% in January, versus roughly 14% at the 2022 peak, CNBC reported. - The shift follows years of cuts, including about 127,000 U.S. tech layoffs in 2025 alone, leaving workers to price security more explicitly in job talks. (news.crunchbase.com)
Tech workers are increasingly choosing stability over the biggest paycheck after another long run of layoffs across the industry. (govtech.com) GovTech’s David Lohrmann wrote Sunday that the old tech hiring pitch of higher cash and faster titles has weakened as workers watch repeated cuts at companies including Microsoft, Meta and Nike. He framed the shift as “The Great Stay,” with candidates valuing employer durability more than maximum compensation. (govtech.com) The math has changed too. CNBC reported in March that workers who switched jobs in January got median pay increases of about 4%, down from roughly 14% at the peak of the pandemic hiring boom in 2022. (cnbc.com) That narrows one of the main reasons people once left. When the pay premium for moving jobs shrinks, a steady employer, predictable reviews and solid benefits become easier to value against startup-style upside. (cnbc.com) (govtech.com) The backdrop is a labor market still absorbing heavy cuts. Crunchbase’s tracker says U.S.-based tech companies cut around 127,000 jobs in 2025, after at least 95,667 in 2024 and more than 191,000 in 2023. (news.crunchbase.com) Crunchbase also said at least 9,730 U.S. tech workers were laid off or scheduled for layoffs in the week ended April 22, 2026, with Meta planning cuts affecting about 8,000 employees globally. (news.crunchbase.com) The human consequence is visible in worker accounts. A Business Insider essay syndicated by Yahoo described a former Intel technician in his 60s who said a layoff wrecked his retirement plan and left him searching for a job that would restore healthcare and stability. (yahoo.com) Other surveys are finding the same caution outside tech. Nuveen said this month that 62% of U.S. workers now prioritize long-term job security over new opportunities, and 30% have stopped job searching in the past five years. (nuveen.com) (prnewswire.com) For employers trying to hire, that means vague promises about security carry less weight than terms candidates can measure, such as severance, review cadence, promotion timing and remote-work policy. GovTech argued that public-sector technology teams may have an opening if they can trade lower peak pay for clearer stability. (govtech.com) The result is a quieter market than the job-hopping years. Workers are still moving, but more of them want proof that the next employer will still be standing after the next round of cuts. (govtech.com)
