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SAN FRANCISCO (CBS.MW) -- Ever since the U.S. unemployment rate rose after the terrorist attacks and hit 5.8 percent in December, more American workers have had to confront something they'd so far been sheltered from in this recession: Accepting lower salaries in their new jobs. The proportion of jobseekers earning equivalent or better salaries in their new jobs fell to 78 percent during the fourth quarter from 87 percent in the third quarter, according to Chicago-based outplacement firm Challenger, Gray & Christmas. That's the lowest quarterly level seen since Challenger began tracking the data in 1986, and the first time it's dropped below 80 percent, the company said Monday. The rate of those doing as well, if not better financially in their new positions, ran 90 percent annually over that 16-year period. It's not clear to what degree employers are offering less pay, versus how many workers are accepting lower terms without negotiating, chief executive John Challenger said. But as more laid-off workers see their severance pay or unemployment benefits come to an end, they're tempted to take the first offer that comes along -- even if it's substantially less than they could command. "There are people who believe it's just better to get something, but that's usually a bad decision," Challenger said. "The market's not that bad." Changing assumptions Nearly two years after the unemployment rate hit a 30-year low of 3.9 percent, workers have switched from being overly optimistic to disproportionately cautious about their prospects for being rehired, he said. "People expected their search times to run five-and-a-half months when instead it ran 3.9 months in the third quarter," Challenger said. "There was a pessimism gap there, a lack of jobseeker confidence, because of all the bad news." Another hang-over from the tight labor market now holding workers back is the idea that changing jobs without securing a better title and more compensation does damage to a career path, said Smooch Reynolds, chief executive of search firm TRRG, Inc. in Pasadena, Calif. and author of "Be Hunted: Twelve Secrets to Getting on the Headhunters' Radar Screen." "People cannot expect to catapult their careers in an economy like this," Reynolds said. "They have to wrap their head around the notion that a moderate step is okay." In fact, many employers are adapting their expectations and becoming more open to accepting holes or pay cuts in job candidates' salary histories, she said. "There are situations that happen in career navigation that are no fault of the professionals themselves that result in nontraditional job changes." Reynolds doesn't suggest a particular threshold for pay reduction, but advises laid-off workers to run a spreadsheet for each offer, comparing duties and other forms of compensation with the last job, she said. Evaluating the benefits package and lifestyle issues such as commuting time may produce a better trade-off after all. "Put your ego on the bookshelf and gain some objectivity so you can truly make an assessment about whether this is a reasonable next step," she said. Protecting income and job possibilities Laid-off workers can balance their desire for upward mobility with their fear of jeopardizing job prospects by making a measured counteroffer, Challenger said. A strategy of saying "yes, but..." increases the likelihood of landing the job without sacrificing more favorable terms, he said. "People can make good lateral moves and even find better jobs. Sometimes it's a question of being courageous enough to say no or to go negotiate for more." If a hiring manager doesn't agree to a higher fee, people should be able to make up their losses when the company is in a better financial position, Reynolds said. "If corporations are smart, they will be open and flexible about having that discussion so they don't risk losing good talent." Kristen Gerencher is a reporter for CBS.MarketWatch.com in San
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