The idea that Millennials and Gen Zers are changing jobs at a far higher rate than previous generations is a “myth”, according to new research that found retention rates have remained relatively stable across the years.

There has been a common refrain in recent years that younger workers are “job hopping”, or switching employers, more quickly and more often than previous generations.

This label has been imposed on Millennials – those born between 1981 and 1996 – and Gen Z – those born from the mid-90s to mid-2020s.

But according to new research by the National Institute on Retirement Security (NIRS), the data does not back this up.

A persistent myth

According to its analysis of US Bureau of Labor Statistics and independent research, younger workers today are changing jobs at nearly identical rates that Baby Boomers and Gen Xers did at the same age.

The report found that workers aged 25 to 34 in 2024 had a median tenure of 2.7 years at a workplace, only slightly lower than Baby Boomers at the same age in 1983, who had a median tenure of 3 years.

“These findings should put to rest the myth that Millennials and Gen Z inherently are job hoppers,” NIRS executive director Dan Doonan said.

“Younger workers have always changed jobs more often than older workers as they find their career path.

“That was true for Baby Boomers, Gen X and it remains true today.

“The real drivers of turnover are the economy, benefits and job opportunities, not generational differences.”

The research also found that many of the benefits found in the public sector can promote retention, and that differences across industries shape job stability.

“Younger workers always will have shorter average and median tenures because they haven’t had the time to be employed for as long, and younger workers will change jobs more frequently than older workers as they look for the job or career that is right for them,” the NIRS report said.

“But these are not new phenomena.”

The research also found that manufacturing jobs have higher retention rates than retail and professional services roles.

Why people really ‘job hop’

Instead of age, the research found that the main factors in people changing jobs are the state of the economy and the availability of other job opportunities.

Previous research has also found that Gen Z workers are increasingly likely to list flexibility as their most important consideration when looking to switch jobs.

The same report also found that more than half of Gen Z and Millennial employees were expecting to change workplaces last year.

It seems money is still king, too, with more than half of Australian workers ready to switch jobs in exchange for a pay increase of about 20 per cent, according to research by specialist recruiter Robert Half.

A report earlier this year found that job hopping is less common in the tech sector than in many other industries.

The research looked at the proportion of people in a range of industries who had been in their current role for less than a year and labelled these people “job hoppers”.

It found that just under 20 per cent of tech workers were in their role for less than a year, and the median tenure was five years.