The Front Page: As recession looms, is it still a good time to change jobs for more money?

Should you jump ship when the economy is struggling? Photo / Getty Images

The labour market remains tight and it wasn't long ago that New Zealanders were telling stories of switching jobs for huge pay rises.

But the more recent tone is shifting. There are now growing concerns that the global economy could be headed for recession as nations, including New Zealand, continue to battle inflation.

Personal finance expert Hannah McQueen tells the Front Page podcast that market conditions over the past year have made it possible for workers to step into opportunities that they wouldn't have had under different circumstances.

While this approach can lead to higher pay, McQueen warns that there are also a few pitfalls to be aware of.

"Anyone who is good at selling themselves will be able to sell themselves for the highest value, but you can shoot yourself in the foot by wanting to be paid more than the value you are bringing to the table – in effect, being overpaid for your qualifications and skill set," says McQueen.

"You better learn to run pretty fast because there's a spotlight on you. And if you can't keep up with that, businesses can't afford to absorb those overheads indefinitely."

The patience businesses show with under-performance will only grow as the pressure grows on the economy in the coming months.

So how do you know when you should jump ship? Does more money equate to happiness? And if so, how much should you be earning to maximise your happiness?

For answers to these questions and more listen to our Labour Day episode of the Front Page podcast.

• The Front Page is a daily news podcast from the New Zealand Herald, available to listen to every weekday from 5am.

• You can follow the podcast at iHeartRadio, Apple Podcasts, Spotify, or wherever you get your podcasts.