A Career Change in 2026 Could Cost More Than You Think — Here’s Why
A study by Monster found that 64% of job seekers are applying to jobs outside their industry in 2026.
Better pay and job stability top the list of reasons cited by would-be career changers. But the survey found that job seekers are willing to make real sacrifices to change careers, with many willing to lose full-time hours, seniority and remote work.
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The costs of a career change go even further however. Watch out for these costs and downsides to changing careers in 2026.
Cost of New Credentials
Most workers considering a career pivot understand this one. New certifications, credentials and degrees cost time and money, often measured in the thousands.
“Credentials that actually move the needle with employers take months to complete,” said Joel Marotti, career expert with Vertical Media Solutions. “So, career changers in 2026 are spending more time and money to become competitive in a market offering fewer opportunities.”
Income Drop During Reskilling
That time that you spend working toward new credentials and skills? That’s time you could have been spending on other (income-producing) work.
Instead of starting a side hustle or developing your current career (and salary), you’re taking courses or otherwise reskilling. Yad Senapathy, founder and CEO of Project Management Training Institute, said the institute has trained over 80,000 people through career changes and that the biggest barrier is the drop in income while reskilling. “Normally career changers plan for their tuition expenses without considering the real reduction in earnings while becoming qualified in their new sector,” Senapathy added.
Sparse Jobs
If you’ve read even cursory news headlines in 2026, you know the labor market has weakened. The economy added just 57,000 jobs in June according to the Labor Department.
Career expert Sam DeMase at ZipRecruiter sees job hunters fighting an uphill battle. “In today’s low-hire, competitive job market, employers are prioritizing skill-based hiring. There’s less appetite to train career changers, so they’re favoring candidates with experience and skills to hit the ground running immediately,” DeMase explained.
Even when they do find work, it often pays less with no security. “With full-time roles being harder to land, career changers are taking on freelance, contract and temp-to-perm opportunities, which pay less than a full-time role,” DeMase said.
Restarting on the Income Ladder
Don’t expect a princely paycheck even if you do land a full-time job.
When you start a new career, you typically restart at the bottom of the ladder. That usually means a pay cut, after you lose your seniority and industry experience.
Benefit Risk
In your past career, you may have enjoyed strong employee benefits such as strong health insurance, retirement contributions, paid time off and more.
That could all change, especially in today’s tepid job market. To begin with, you might only land freelance or contract work. But even salaried jobs might not come with premium perks in 2026 and you might face an employment gap between leaving your old career and landing a job in the new one.
“If your transition takes six months, you could pay $4,000 to $11,000 in Cobra continuation costs, which average $650 a month for an individual and over $1,800 for a family," Marotti said. “Add in accumulated PTO that you may or may not have been paid out on, employer retirement matching that stops the day you leave, unvested equity or bonus cycles you forfeit by walking away midyear and you have a costly transition.”
By all means, follow your dreams in changing careers. But go into it with open eyes, understanding the full costs and risks in today’s job market.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.