Markus Andrews

Fewer Americans are quitting their jobs, and hiring has slowed, creating a frozen labor market with limited mobility.
Economic uncertainty is causing workers to stay put despite growing dissatisfaction.
“Job hugging” is masking widespread disengagement, costing employers billions and weakening productivity, innovation and future workforce development.

Americans aren’t quitting their jobs — and that trend is changing the way the labor market functions.
Since April 2024, the U.S. economy has shed 1.2 million jobs. Hiring has slowed to its lowest pace in a decade, excluding the pandemic dip. The quits rate, once a key marker of worker confidence, has fallen to around 2%, a level not regularly seen since early 2016.

“There’s been a lot of anxiety about the direction of both the economy and the labor market as well,” said James Atkinson, vice president of thought leadership at SHRM, a professional group for human resource management. “I think that is part of what’s keeping people in jobs.”
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Consulting firm Korn Ferry calls the trend “job hugging,” and said fear of the unknown is driving it. Workers are choosing stability over risk, even if it comes at a personal or professional cost.
“A few years ago, [during] the great resignation, people were quitting in large numbers for bigger pay bumps,” said Matt Bohn, a senior client partner at Korn Ferry. “I think wage growth has cooled, job-switching premiums have shrunk, and a lot of workers worry that their pay won’t keep up with rising costs. So I think they’re clinging to stability in a time of uncertainty.”

‘Job hugging’ may mask disengagement

That hesitation has broad implications. While employers might see low turnover as a good sign, experts warn it can mask something more troubling: rising disengagement.

A February study published in the American Journal of Preventive Medicine estimated that employee disengagement costs a typical 1,000-person company around $5 million per year in lost productivity. The average disengaged worker could cost the company $4,000 over the course of a year, while an executive could cost $20,000.
Additionally, 58% of U.S. professionals surveyed by LinkedIn earlier this year said their skills are underutilized in their current roles.
If someone is disengaged but still clocking in, that work has to be absorbed by other team members, which can create additional stress and drag down productivity across the board, said SHRM’s Atkinson. 
“Even if people are engaged and people are putting forth their extra effort, they might have to go even above and beyond to make up for some of the teammates who are disengaged,” he said. “So it’s both an individual employee, but then there’s kind of that knock-on effect across the organization as well.”

The trend also poses risks for the broader economy, experts say. Fewer workers moving between jobs could lead to wage growth flattening and companies becoming more cautious. In some sectors, hiring freezes and natural attrition have replaced layoffs, creating a labor market that looks stable on the surface, but lacks momentum.
Still, some workers could benefit in this environment. Gen Z workers, Bohn noted, are adaptable and tech-savvy. This could make them well-positioned to thrive if companies focus on upskilling and smarter workforce strategies.
But in the near term, experts say, unless confidence rebounds and mobility returns, the U.S. economy could face a prolonged period of stagnation.
Watch the video above to learn more about why so many Americans are clinging to their jobs and how it’s reshaping the U.S. labor market. More

President Donald Trump’s “big beautiful bill” temporarily raised the limit on the federal deduction for state and local taxes, known as SALT, from $10,000 to $40,000 for 2025. 
However, you must itemize tax breaks to benefit from the change, which is typically only a small percentage of filers.
Plus, some taxpayers could see a bigger benefit, depending on where they live, according to a Redfin report.

People enjoy an unusually warm day in New York City as temperatures reach the low 80s on June 4, 2025 in New York City.
Spencer Platt | Getty Images

President Donald Trump’s “big beautiful bill” temporarily raised the limit on the federal deduction for state and local taxes, known as SALT, from $10,000 to $40,000 for 2025. 
But some residents of certain states could see a bigger tax benefit, according to a Redfin report released last week. 

The results are “in line with what you might expect,” and there is “a sizable benefit to residents of certain states,” said Chen Zhao, head of economics research for Redfin.  
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Trump’s 2017 tax cuts capped the SALT deduction at $10,000. Before 2018, the SALT deduction — including state and local income taxes, and property taxes — was unlimited. But the so-called alternative minimum tax reduced the benefit for some wealthy homeowners.
You must itemize tax breaks, rather than claim the standard deduction, to benefit from SALT. During tax year 2022, only 10% of filers itemized deductions, and those taxpayers were more likely to be higher earners, according to the latest IRS data.
Here is where taxpayers could see the biggest benefit from the $40,000 SALT deduction cap for 2025.

States with the biggest SALT savings

Trump’s legislation temporarily raised the SALT deduction limit to $40,000 starting in 2025. That benefit starts to phase out, or decrease, for consumers making more than $500,000. Both figures will increase by 1% yearly through 2029, and the higher deduction limit will revert to $10,000 in 2030.
But itemizers in certain states could see a greater benefit, according to the Redfin report. Here are the 5 states where residents could see the biggest median savings from the new law.

New York: $7,092
California: $3,995
New Jersey: $3,897
Massachusetts: $3,835
Connecticut: $3,133

Meanwhile, these five states are where itemizers would see the smallest median savings from Trump’s law.

South Dakota: $1,033
Alaska: $1,052
Nevada: $1,090
Tennessee: $1,097
New Hampshire: $1,101

To estimate savings, Redfin calculated how much the typical impacted homeowner could deduct under the new SALT legislation. Then, they applied the 24% marginal tax rate to the amount over the previous $10,000 SALT cap.
However, this is “very much a simulation,” with a lot of assumptions, including property values, estimates for property taxes and estimates for state income taxes, Zhao said. The report does not consider local income taxes, which can vary significantly by jurisdiction.

Other measures of the SALT deduction benefit

A separate report released by the Bipartisan Policy Center in May also analyzed which states benefit most from the SALT deduction, based on the number of residents paying SALT, and where taxpayers have the largest SALT deductions.
In 2022, the average SALT deduction was close to $10,000 in states such as Connecticut, New York, New Jersey, California and Massachusetts, according to the analysis, based on the latest IRS data. The bottom five were Wyoming, Tennessee, Nevada, North Dakota and South Dakota.
Those higher averages suggest a large portion of taxpayers claiming the deduction came close to the $10,000 cap, the researchers wrote.

Meanwhile, the states and district with the highest share of SALT claimants were Washington, D.C., Maryland, California, Utah and Virginia, the Bipartisan Policy Center analysis found. The bottom five were West Virginia, South Dakota, North Dakota, Ohio and Wyoming.
However, “neither of these measures is a perfect proxy for how states benefit from the SALT deduction—or are impacted by the SALT cap,” the researchers said. More

The Federal Reserve has made its first interest rate cut and signaled more to come.
For savers, that may mean lower returns on the money they have set aside.
Here’s why experts say it’s not too late to lock in higher interest rates on cash.

Skaman306 | Moment | Getty Images

How CDs make it possible to secure rates

Certificates of deposit, or CDs, offer the opportunity to lock in returns for a certain period — such as a 3-month, 6-month, 1-year, 3-year or 5-year duration.

To be sure, CD rates will also be affected by the recent Fed cut, as well as any future moves by the central bank to lower rates. So experts say now could be a good time to lock in.
While 4% returns on cash have been possible this year with money market funds and online savings accounts, that likely won’t be the case next year, Tumin said.
However, right now there are still CDs available offering 4% rates with durations that carry into next year, he said.

For someone who wants a good rate of return that’s safe and conservative while minimizing risk, CDs can be a great option, said Kates. That also goes for someone in or near retirement, he said.
It is important to understand the terms of the CD before you sign on. Some CDs will charge a penalty if the funds are withdrawn before the term comes due.
Savers may be able to avoid that if they purchase a no-penalty CD, Tumin said. Those products often require a full withdrawal to access any of the money, he said.
Laddering CDs, where savings are invested in CDs with staggered maturity dates, can also be an effective strategy. Once a CD matures, it may be reinvested in another CD with a longer maturity, Tumin said.

When to turn to savings accounts

When deciding where to put your cash, the priority should be how the money may be used, Kates said.
If the money is intended for an emergency fund, where the funds may need to be withdrawn in a pinch, or earmarked for a near-term expense like a vacation or home down payment, a CD may not be ideal, Kates said.
Savers may also opt to divide their cash between savings accounts and CDs to have liquidity for immediate needs and also lock in returns on a portion of their nest egg, Tumin said.

The good news for savers in high yield online savings accounts is those yields are still more than 3%, with a few top-yielding accounts at 4% or better, according to Bankrate. Those exceed the 2.9% 12-month inflation rate recently posted for the Consumer Price Index for August.
However, as lower rates set in, savers may want to watch to see if the terms on their accounts change.
“It’s important for savers to keep a close eye on their accounts and what they’re earning,” Tumin said. “Banks can make rate changes very fast.” More

ETF Strategist

ETF Street
ETF Strategist

Exchange-traded funds and mutual funds are similar but also have key differences that may be significant for investors.
ETFs tend to be cheaper and save investors money on taxes, experts said.
ETFs are scarce in 401(k) plans, though. They also lose their relative tax advantage in tax-preferred retirement accounts.

Wera Rodsawang | Moment | Getty Images

To the average investor, mutual funds and exchange-traded funds may not seem very different.
After all, they are both relatively liquid baskets of stocks, bonds and other assets overseen by professional money managers, and can help investors diversify their portfolios.

But there are some key differences that may make one a better financial choice than the other for certain investors, according to experts.

How they trade

Perhaps the most obvious difference is how investors trade ETFs and mutual funds.
ETFs trade like stocks: Investors buy or sell them on a stock exchange. By comparison, mutual fund investors transact directly with the fund itself.
While investors can place mutual fund trades during the business day, they won’t know their transaction’s exact price per share until the end of the day. However, ETF investors know their exact purchase price when they transact.
These differences generally matter more for day traders but not the average buy-and-hold investor, said Gloria Garcia Cisneros, a certified financial planner and wealth manager based in Los Angeles, and a member of CNBC’s Financial Advisor Council.

Investors can hurt themselves financially by trading too frequently, experts said.
“Even in a scenario where you’d want to sell intraday, it’s [often] emotion-based and usually not a good way to invest,” said Bryan Armour, director of ETF and passive strategies research for North America at Morningstar.

ETFs are ‘way more tax-efficient’

Taxes and fees are much more consequential differences for everyday investors, experts said.
For example, ETFs can save certain investors from a big year-end tax bill that mutual fund shareholders might otherwise incur.
In this case, the taxes are capital gains, which are taxes owed on investment profits. Fund managers can generate such taxes within a fund when they buy and sell securities. Those capital gains then get passed along to all the fund shareholders, who owe a tax bill even if they reinvest those distributions.

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Here’s a look at other stories offering insight on ETFs for investors.

However, ETF investors rarely owe these tax bills: Just 6.5% of U.S. stock ETFs distributed capital gains to investors in 2024, compared to 78% of U.S. stock mutual funds, according to Morningstar.
The trend was similar for international stock funds: About 6% of ETFs distributed capital gains, versus 42% of mutual funds, according to Morningstar.
“Sometimes, [mutual fund investors] get a bit of a nasty surprise in the form of capital gains and a tax bill,” said Lee Baker, a certified financial planner based in Atlanta, and a member of CNBC’s Financial Advisor Council.
While mutual fund managers use cash to buy and sell securities, ETF managers use a different mechanism known as an “in-kind” transaction to facilitate a trade. This basically entails trading securities instead of cash; the method doesn’t trigger a sale, and therefore doesn’t create capital-gains tax.
“ETFs are way more tax-efficient,” Armour said. “That’s a huge advantage over the long term.”
However, there are certain times when ETFs can’t make in-kind transfers, and may therefore create a taxable event: for example, many kinds of derivatives, currency trades and when handling securities from certain international jurisdictions (like India, South Africa and Brazil), Armour said.
Also, ETFs’ tax advantage only exists for investors who hold their funds in a taxable brokerage account. It disappears for those who hold their funds in a tax-sheltered account, like a 401(k) or individual retirement account.

ETFs cheaper ‘in pretty much every way’

Oliver Helbig | Moment | Getty Images

ETFs also tend to be significantly cheaper for investors to own than mutual funds, experts said.
The average asset-weighted investment fee for ETFs was 0.42% in 2024, compared with 0.57% for mutual funds, according to Morningstar.
These fees, known as expense ratios, represent a share of investor assets in a fund. They are charged annually and withdrawn directly from investor accounts.
Some of this fee differential is because a larger share of ETFs are index funds, which tend to be cheaper than actively managed ones, Armour said. It’s therefore natural that mutual funds would be more expensive if a larger share of them is actively managed.
However, many asset managers have debuted identical investment strategies in both an ETF and mutual fund — and, when comparing their fees, the ETFs are still often cheaper for retail investors, Armour said.
He gave the example of the T. Rowe Price Blue Chip Growth fund, which charges a 0.57% annual fee for the ETF version and 0.69% for the investor share class of the mutual fund version.
“In pretty much every way, ETFs are cheaper than mutual funds,” Armour said.

May not have a choice

There may be times when it’s better for investors to buy mutual funds.
For example, the universe of mutual funds is much larger, meaning investors may only be able to access certain funds in a mutual fund structure, experts said.

The ETF universe is expanding, though.
“ETFs are growing in popularity,” Cisneros said. “Even mutual fund managers are launching ETF versions of their strategy.”
Additionally, ETFs aren’t readily available in 401(k) plans, so investors may not have a choice.
Certain brokerages may not allow for dollar-cost averaging into an ETF, Baker said. Investors who want to schedule automatic contributions into a fund on a regular basis may have to choose mutual funds, depending on their brokerage, he said. More

CANADA – 2025/01/27: In this photo illustration, the CVS Health logo is seen displayed on a smartphone screen. (Photo Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty Images)
Thomas Fuller | Lightrocket | Getty Images

The U.S. Federal Reserve approved a much-anticipated rate cut this past week, and signaled that more are coming. As the economy gradually heads into a low-interest rate backdrop, many investors looking for income-generating investments will prefer buying dividend stocks that offer attractive yields.  
Backed by their expertise and in-depth analysis, top Wall Street analysts can help investors pick the right dividend stocks for their portfolios.

Here are three dividend-paying stocks, highlighted by Wall Street’s top pros, as tracked by TipRanks, a platform that ranks analysts based on their past performance.
CVS Health
Retail pharmacy chain CVS Health (CVS) has announced a quarterly dividend of $0.665 per share, payable on November 3, 2025. At an annualized dividend of $2.66 per share, CVS stock pays a dividend yield of 3.6%.
Following recently held conversations with CVS Health CEO David Joyner and CFO Brian Newman, Morgan Stanley analyst Erin Wright reiterated a buy rating on CVS stock with a price target of $82, expressing optimism about the value of the company’s integrated model and its turnaround potential. Interestingly, TipRanks’ AI Analyst has an “outperform” rating on CVS stock with a price target of $81.
Wright noted that one year into the CEO role, Joyner continues to focus on the stabilization and multi-year turnaround of the company. The 5-star analyst highlighted that CVS’ integrated model “generates value that should address the issues of healthcare affordability and access, and inconsistent care delivery in the U.S. by providing a more holistic solution.”
Management discussed how the integrated approach is improving CVS’ Stars (Medicare Star Ratings system) positioning, driving dominance with the new Pharmacy pricing models and facilitating biosimilar adoption. Wright noted that heading into 2026, CVS is successfully orchestrating a second turnaround year at its Aetna health insurance business and a successful pharmacy benefit manager selling season. Management also emphasized strength in the retail business, thanks to technology investments, store optimization and market share gains.

Commenting on capital deployment, Wright noted that CVS Health’s top priority is returning to its target leverage of low 3x, and that the company intends to hold its dividend until it reaches the target payout ratio (about 30% as of 2023). Importantly, CVS intends to restart share repurchases when it achieves its long-term target leverage.
Wright ranks No. 244 among more than 10,000 analysts tracked by TipRanks. Her ratings have been profitable 65% of the time, delivering an average return of 13.4%. See CVS Health Hedge Fund Trading Activity on TipRanks.
Williams Companies
This week’s second dividend pick is energy infrastructure provider Williams Companies (WMB). The company’s quarterly cash dividend of $0.50 per share reflects a 5.3% year-over-year increase. At an annualized dividend of $2 per share, WMB stock pays a yield of 3.4%.
Recently, Stifel analyst Selman Akyol hosted a conference call with Williams’ CFO John Porter. The top-rated analyst said afterward that “Williams continues to have an attractive runway for growth given its natural gas-centric strategy.” Akyol noted growing demand for natural gas, driven by an expected increase in LNG exports, power usage and data centers.
Akyol mentioned that Williams remains focused on capturing incremental data center opportunities, targeting 6 gigawatts in total capacity, with the Socrates project constituting only 400 megawatts. Furthermore, LNG exports continue to be the largest driver of natural gas demand volumes. Notably, WMB has about 10.5 billion cubic feet per day of export capacity under construction within the Transco corridor.
Despite solid growth opportunities, Akyol noted that WMB is focused on its dividend payments and maintaining a strong balance sheet, while keeping leverage in the 3.5x to 4.0x range. CFO Porter highlighted that Williams’ high-quality asset base supports a stable and growing dividend.
WMB is growing its dividend in the 5% to 6% range annually, compared to about 9% compound annual growth rate in earnings before interest, taxes, depreciation and amortization (EBITDA). Akyol noted that while, over time, management would like to grow dividends in line with cash flow growth, the timing of cash tax payments and robust growth opportunities are key reasons for the gap.
Overall, Akyol is bullish on Williams stock and reiterated a buy rating and a price target of $64. By comparison, TipRanks’ AI Analyst has a “neutral” rating on WMB stock with a price target of $63.
Akyol ranks No. 354 among more than 10,000 analysts tracked by TipRanks. His ratings have been profitable 66% of the time, delivering an average return of 10.6%. See Williams Statistics on TipRanks.
Chord Energy
Finally, let’s look at Chord Energy (CHRD), an independent exploration and production company with sustainable long-lived assets, mainly in the Williston Basin in North Dakota and Montana. The company paid a base dividend of $1.30 in the second quarter. Considering the total variable and base dividends of $5.34 paid over the past 12 months, CHRD stock offers a dividend yield of 5.1%.
This week, Chord Energy announced an agreement to acquire assets in the Williston Basin from Exxon Mobil’s XTO Energy Inc. and affiliates for $550 million.
Reacting to the news, Siebert Williams Shank analyst Gabriele Sorbara said it’s another favorable deal that further consolidates core assets in the Williston Basin. The top-rated analyst noted that the purchase adds incremental inventory, enhances operational efficiency and leverages CHRD’s execution in the basin. 
Sorbara expects the acquisition to add to cash flow and free cash flow (FCF) per share, adding that while the net debt/EBITDA ratio edges higher after the deal, it remains “comfortably” low and below Chord’s peers, reflecting CHRD’s superior capital returns. In fact, CHRD reiterated its framework of returning more than 75% of its adjusted FCF to shareholders via dividends and buybacks.
“We reaffirm our Buy rating on valuation, underpinned by its strong, stable FCF yield providing the capacity for superior capital returns while maintaining low financial leverage,” said Sorbara. The analyst reiterated a buy rating on CHRD stock with a price forecast of $140. TipRanks’ AI Analyst has an “outperform” rating on Chord Energy with a price target of $118.
Sorbara ranks No. 142 among more than 10,000 analysts tracked by TipRanks. His ratings have been profitable 57% of the time, delivering an average return of 24.4%. See Chord Energy Ownership Structure on TipRanks. More

On Thursday, American Express said consumer and business versions of its Platinum credit card will now have an annual fee of $895.
In June, the Chase Sapphire Reserve card raised the annual fee to $795. That’s a 45% jump from $550, its previous annual cost.

American Express announces the new platinum business card.
Courtesy: American Express

As issuers push annual fees higher for some premium travel rewards credit cards, experts say it’s important for consumers to consider if such cards are worth the cost.
On Thursday, American Express announced that consumer and business versions of its Platinum credit card will now have an annual fee of $895. That’s about 29% higher than the current cost of $695 per year.

In June, the Chase Sapphire Reserve card raised the annual fee to $795. That’s a 45% jump from $550, its previous annual cost. In July, Citi introduced the Citi Strata Elite, a premium travel credit card that costs $595 per year.
Other credit cards have been changing terms to access perks like airport lounges. Earlier this year, Capital One announced that, starting in February, customers using its Venture X Rewards and Venture X Business cards — each of which have $395 annual fees — will no longer be able to bring guests to the lounges free of charge.
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Higher annual fees mean you have to assess whether the card perks are worth the cost.
“Annual fees are not inherently bad; you just need to make sure that you’re getting value from [the card],” said Ted Rossman, senior industry analyst at Bankrate. “It’s getting harder to maximize, though.”

One habit will ‘easily diminish’ travel card value

A travel rewards card isn’t likely to be a good value if you’re carrying a balance from month to month, experts say.
“Any interest that you owe will easily diminish the value of any of these benefits,” said Sally French, a travel expert at NerdWallet. 
It may also be harder to pay down debt. While the average annual percentage rate for credit cards is about 20.13%, the typical rate on premium travel cards can be closer to 25% to 30%, according to Rossman.
“Generally speaking, rewards cards charge higher rates,” he said.
Here’s how to decide if a travel credit card is worth the investment, according to experts.

Decide: Broad travel card, or brand specific?

You’ll come across two kinds of travel credit cards. Co-branded credit cards are usually tied to specific airlines, hotels or even cruise chains, and provide benefits that are more valuable at that brand, French said.
If you frequently use a specific airline or tend to stay with a certain hotel chain, a co-branded credit card may be worth it, experts say.
An airline credit card, for instance, might have benefits like free checked bags, priority boarding, premium status tiers and sometimes discounts or points for spending at that airline.
“It’s only free [checked] bags on that airline,” said French. “Your Southwest credit card won’t get you anything on United.”
Some airlines belong to partnership networks such as Star Alliance, Oneworld or SkyTeam. If you’re looking at a brand-specific card, see if the company has partnerships that allow you to transfer points or miles to allied brands.

On the other hand, general travel credit cards are “really good for people who don’t want to be married to a specific brand,” as you can earn and use rewards more broadly, French said.
Some travel credit cards do not charge annual fees; for those that do, the cost can range from $95 to over $500 per year, according to NerdWallet. Keep in mind that travel credit cards with little to no fees may not offer the same level of benefits and rewards as paid cards.
Both kinds of travel cards tend to have a set of similar perks, including credits for TSA PreCheck and other pre-screening memberships, and big sign-on bonuses when you spend a certain amount of money on the card within a short period of opening it. As a frequent traveler, such benefits can help make the card fee worth the cost, experts say.
To assess the benefits of the card, look at a detailed list of the perks on the issuer’s website, said French. A card might charge an annual fee, but say it includes one free checked bag for you and a certain amount of guests. With just that perk, the card could pay for itself within a trip or two for a family.

How to know what card is best for you

While some of the perks and rewards can seem enticing, it’s important to consider your travel habits and lifestyle, said Rossman. Also consider what your credit habits are like, experts say. 
For those who do not travel often, a travel credit card without an annual fee is probably going to be the best option, said French.
“You don’t want to be paying an annual fee on a credit card that has benefits that you might not use,” she said. 

If you travel frequently in a given year and typically with a specific airline, a co-branded credit card can make sense, French said. 
If you currently hold a card with a high annual fee, but realize you’re not getting the most use out of it, you may be able to downgrade to a less expensive or free card offered by the issuer, Rossman said. 
Doing so will be better for your credit rather than closing out the card altogether, he said. More