Millennials opting to avoid the risk and stress of switching jobs could be paying the price for their company loyalty, according to new research conducted in the U.K.
Only one in 25 people born in the 1980s switched employment before their 30th birthday, official labor market data showed.
U.K. think tank Resolution Foundation found that in comparison to millennials, the generation born 10 years earlier were more than twice as likely to move jobs. The trend showed that millennials would often miss out on double digit-pay rises closely associated with a new job and the research indicated its findings could even help explain younger people's poor pay growth overall.
"One of the most striking shifts in the labor market has been young people prioritizing job security and opting to stick with their employer rather than move jobs," Laura Gardiner, senior policy analyst at the Resolution Foundation, said in a statement.
The research appears to debunk the myth that young workers are disloyal job swappers and even concludes that the benefits of staying in the same position is counterproductive, at least in terms of pay. Annual real pay increases for long-term employees were found to have dropped from around 4 percent to close to non-existent.
One theory offered by Bank of England Governor Mark Carney could be that people prioritize job security during a particularly tumultuous financial climate.
"Put simply, long after the original trigger becomes remote, perceptions endure. (People) become embedded in economic narratives and their salience persistently affects risk perceptions and economic behavior," Carney said in a speech the week following the Brexit vote.
The Resolution Foundation's data follows another report it conducted earlier in February which found that millennial men were earning on average £ 12,500 ($15,622) less than the male generation that preceded them by a decade.