In August, the unemployment rate rose to 4.3 percent, reaching its highest point since October 2021, and the number of Americans out of work for more than 27 weeks climbed to 25.7 percent—its highest level since early 2022.
Many jobseekers who’ve been out of work for months on end are considering pay cuts to stay afloat and find employment. In fact, half of the women in our audience say they would take a pay cut in a tight job market.
“Something is ultimately better than nothing when it's taking people upward of six months to be reemployed,” one survey respondent shared. “I work in reemployment. With direct knowledge of how hard it is to get a job out there right now, I'd take a pay cut as long as it was still a livable wage and most likely continue to look for work at a better rate.”
If you’re considering taking a pay cut right now, it’s vital to understand how to evaluate the true value of a job beyond salary. Keep reading for tips on calculating total compensation, negotiating benefits, and making intentional career decisions when salary is off the table.
Read more: What to Do When a Job Offer Is Lower Than Your Current Salary
When and why women take pay cuts
We asked our audience, “If you’ve ever taken a pay cut, what made it feel like the right choice for you?” Here are the reasons why they’ve accepted a lower salary, in their own words.
To escape toxic workplaces and protect wellbeing
“I took a pay cut to get out of a toxic work environment. That said, the pay cut was small. Also there were clear growth opportunities in the near future and much better benefits (including more PTO, remote work, flexible schedule, etc.) that balanced out the pay cut.”
“I was desperate to leave a toxic organization and knew my boss (who protected me from a lot of the issues) was leaving too. I took a small pay cut but negotiated that we revisit my salary by the end of the year, and I also asked for a bonus consideration (the first for this company). It helped me keep the options open with the company, but also gave me some options to negotiate against once I was there, leaving me in a position that didn't feel so weak.”
“My mental health improved tenfold because I was finally in a place where I was respected and appreciated as an employee.”
“The job turned out to be extremely easy and flexible. It felt right because I'm now able to pursue things outside of work.”
“It was worth the culture shift that I was taking and allowed for career growth in the long run.”
Read more: Your Toxic Workplace Checklist: 16 Signs the Culture Is Bad for Business
To change career paths and take advantage of growth opportunities
“I took a significant pay cut to change career paths. It was definitely worth it in my opinion as I enjoy my career much more now and am well past the initial salary.”
“I’ve taken pay cuts when pivoting to new industries, as well as changing to part time work with lower pay while returning to school. Saving and living within my means consistently over the years allowed me to feel more comfortable lowering my income each time.”
“I was changing industries and felt I didn't have the product knowledge to go in at the same salary I was previously on. I got a pay cut and have worked my way back up the salary ladder, and beyond... Almost doubling what I came in with, with the same company.”
“I've taken pay cuts earlier in my career when I didn't have a family or dependents and wanted to work for specific companies with great benefits. I figured the opportunity for growth outweighed the pay cut.”
To gain more flexibility and family time
“I try to look at the situation from a big picture point of view. Is there upward mobility? Does the company reward you with promotion and raises? Also, I think of my family and what I need to do for them to ensure they have everything they need. I also think that in today’s market, there’s a lot of flexibility to move.”
“I would need to gain something else. I did take a pay cut for my current role but I went hybrid and cut my commute down by over an hour a day.”
Out of necessity to pay bills
“I was out of work for nearly a year, had very few interviews and hardly any call backs despite 1000s of submitted applications. Finally got a hit, not my ideal job, had to return to the office after working remote for 6 years, and had to take a pay cut of nearly 50% ... but I NEEDED a job! Still searching for a better job that gives me remote work at a higher pay, but collecting a smaller paycheck in the meantime is better than no paycheck!”
4 ways to protect your career when you accept less pay
Whether you’re changing industries, prioritizing your mental health, or trying to stay afloat, considering a pay cut requires strategy. Here’s how to protect your career when you’re weighing your options.
1. Calculate your total compensation
When weighing a job with a lower paycheck, keep in mind salary is just one piece of what an employer offers. The value of benefits can be significant. Health insurance contributions, retirement matching, paid time off, bonuses, stipends, and even stock options all add up.
For example, an employer covering 80 percent of your health insurance premium could save you several hundred dollars a month, which effectively boosts your take-home pay. To calculate your total compensation, list out every benefit offered, from childcare to commuter benefits to gym stipends, and put a dollar value on each benefit. Add these numbers to your base salary to see your true annual compensation.
2. Prioritize growth opportunities
A pay cut in the short term can be a strategic move if the role offers strong potential for growth. Opportunities like mentorship, on-the-job training, tuition reimbursement, and exposure to leadership can accelerate your career trajectory, helping you network with the right people and earn more in the long run. Think of it as an investment: You’re trading a smaller paycheck now for skills and experience that could pay more later.
Start by doing some research on LinkedIn to see if you can find typical career progressions at the company. Look at how often employees in similar roles are promoted. To find out if a company will truly invest in your growth, ask these questions in your interview:
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Does the company offer mentorship, training, or tuition reimbursement?
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How often does this role collaborate with senior leaders or cross-functional teams?
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What does success look like in this role, and how quickly do people who perform well tend to advance?
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How does the company position its employees for long-term career success?
Once you’ve gathered more information, consider: Will this job add skills, credentials, or connections that increase my long-term earning power?
Read more: How to Ask About Growth Opportunities During an Interview
3. Negotiate beyond the paycheck
When an employer says a salary is fixed, it doesn’t mean the entire offer is off the table. Many women successfully negotiate for perks that improve quality of life or long-term career growth, and those benefits can carry serious financial value. Think signing bonuses, relocation support, extra vacation days, flexible schedules, or stipends for professional development. Even a smaller perk, like a monthly phone or internet allowance, can add up over the course of a year.
Examples of benefits you can negotiate for:
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One-time signing or relocation bonus
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Extra paid time off or flexible scheduling
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Remote or hybrid work arrangements
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Professional development funds (conferences, courses, certifications)
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Fitness memberships or mental health services (telehealth counseling, in-person therapy sessions, app memberships)
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Childcare or commuter stipends
How to phrase the ask:
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“I understand the base salary is firm. Could we explore additional vacation days or flexible scheduling as part of the package?”
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“Professional growth is a big priority for me. Would you consider adding a stipend for training or certifications?”
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“If the salary isn’t adjustable, would a signing bonus be an option to help offset the transition?”
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“Since this role requires me to be on-site, could we discuss a relocation bonus or commuter stipend?”
If there’s no wiggle room on benefits, try negotiating your job title. Having a certain title can help you leverage more pay internally down the line or when/if you eventually get a new job.
Read more: How to Negotiate Your Job Benefits: 10 Conversation Example Scripts
4. Make an intentional decision
Taking a pay cut is a choice you need to make with clarity. It can be easy to accept a lower salary out of urgency or pressure without weighing what they’re gaining in return, but it’s important to consider the offer holistically and check it against your values, priorities, and long-term goals. That way, even if the paycheck is smaller, you know the role supports the bigger picture of your life and career.
Start by creating a simple framework to help you compare offers and weigh tradeoffs. Rank the values that matter most to you in this season of your life. Categories might include:
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Flexibility (schedule, remote work, commute time)
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Career trajectory (growth potential, mentorship, leadership opportunities)
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Financial security (salary, bonuses, benefits)
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Wellbeing (company culture, workload, mental health support)
Then, score the job on each value (say, 1–5). This quick exercise makes it easier to see whether the offer really aligns with your priorities. For example, if flexibility and growth matter more to you than immediate financial gain, a role that scores high in those areas might still outweigh the drawback of a pay cut. On the other hand, if financial security is your top priority right now, you’ll see that reflected in the scores and know to pass on a role that doesn’t measure up.
Read more: What Are Your Career Goals? 4 Things Not to Say in an Interview
