Why remote work is causing a massive shift in salaries around the country

jerb@insider.com (Jordan Parker Erb) - 8h ago

If you're living somewhere in between New York City and San Francisco (both geographically and size-wise), you may see a massive shift in how you get paid — especially if you're a tech worker.





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7 steps to take if you think you'll be laid off so you can have peace of mind if the unexpected happens
The job market remains strong yet layoffs and hiring freezes are happening in a range of industries.
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Layoffs and hiring freezes are sweeping across industries, from automotive to big tech, even as the overall job market remains strong.

Last week, Tesla CEO Elon Musk called for a pause to "all hiring worldwide" in an email sent to executives. In May, the online used car dealer Carvana laid off about 12% of its workforce. The 2,500 affected employees were informed through a Zoom call.

Meta, the parent company of Facebook, implemented a hiring freeze for mid-level and senior-level roles. Uber also announced plans to slow hiring. Coinbase, the third-largest crypto exchange by volume, is scaling back and revoking job offers for some candidates who have yet to start.

Unilever, the consumer-goods company that owns brands such as Ben & Jerry's, Dove, and Vaseline, is cutting 1,500 global management jobs.

Despite these companies' moves, the broader job market is still showing strength. US employers added 390,000 jobs in May and the nation's unemployment rate remained at a low 3.6%. The latest job gains come after nearly a year of employers adding more than 400,000 jobs a month, a string of strong showings.

Even with the relative ease many workers would have in finding new roles in a still-strong job market, it's wise to be prepared, especially in case hiring cools. If you have been laid off or are concerned about your job security, it's a good idea to organize the documents and information you need in case you get let go.

Insider compiled a list of seven things to know from human resources and retirement experts. These tips are helpful for people who have been laid off, are now without a job, as well as people who have been furloughed, or have been forced to take an unpaid leave.

This story was originally published in May 2020.

Read the original article on Business Insider

Writing to you from New York, I'm Jordan Parker Erb. Let's get into it.


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1. A seismic shift is changing how Americans get paid. Geography has long played a role in how workers are compensated: If you lived in Dallas or Minneapolis, you'd never earn the kind of paychecks offered in big cities like San Francisco or New York. But now, that's changing.

As companies continue to fill remote roles in towns far beyond their headquarters, white-collar salaries nationwide are getting tantalizingly close to those in major tech hubs.

The phenomenon is strongest in tech, which has embraced remote work more than any other industry — and salaries at tech startups in Boston, Denver, and other cities are now within 10% of those in San Francisco.

And in Washington, DC, where salaries used to be 15% lower than those in San Francisco, pay is now virtually on par with the Bay Area.

Welcome to the Great Salary Convergence.