CNBC reported last March that there were 11.3 million job openings in February 2022, which was 5 million more than the number of unemployed workers. However, the number of people quitting their jobs has continued to remain above historical averages. Resignation levels have been high since mid-2021, when pundits and the media coined the phrase the Great Resignation. 

If you want to leave your current employer to seek greener pastures or, perhaps, a more employee-friendly environment, it remains an excellent time to do so. Perhaps the more relevant question is whether you should find a job before quitting your current one. If you are uncertain whether to re-sign vs resign, here are some thoughts to help guide you. 

How to know when to leave a job:

Financial Considerations

Finances are crucial when it comes to job searching, and resigning before securing a new job can lead to financial stress. Consider several factors before making a decision:

• Loss of Income: If you leave your current job before securing a new one, you need to be prepared for a period wherein you won’t generate income. This is a critical aspect to consider because the time it takes to land a new job can be unpredictable. It could take weeks or even months, which may put a major dent in your savings or leave you unable to pay all your bills. So, it’s crucial to have a solid financial cushion in place if you choose to resign before you have a new job lined up.
• Health Insurance: In some countries, health insurance is tied to employment. In these cases, it may be best to look for a new job first before leaving your job to stay eligible for subsidized health insurance coverage and avoid piling up out-of-pocket health care costs that may arise while you are between jobs. 
• Unemployment Benefits: For the most part, quitting a job without new prospects can make you ineligible for unemployment benefits. These benefits require that you lose your job due to no fault of your own, and voluntarily leaving your job doesn’t meet this qualification. 
• Retirement Benefits: You may need to secure a new job before quitting your current one if you don’t want to miss out on retirement contributions like your 401(k). 

Non-Financial Considerations

Aside from finances, you should also consider other factors related to your current and prospective jobs. Here are some aspects to think about:

• Work-Related Stress: High stress levels can lead to mental and physical health issues, such as anxiety, depression, and even heart disease. If your job is causing you excessive stress, it’s essential to consider whether it’s worth staying. Remember, no job is worth compromising your health. So, if you have enough financial leeway to cover your needs, and you’re stress levels are high in your current role, you might consider quitting before you secure another job.
• Networking Opportunities: Being employed while job searching might make it more challenging to network effectively. Leaving your job could give you more time and flexibility to attend networking events, meet industry professionals, and make time available for interviews.
• Career Progression: Staying in a job that offers no room for growth or improvement can hinder your career progression. You may be spending more time working in a job that won’t help you reach your long-term goals. If you feel stuck or unappreciated, it may be worth taking the risk to find a job that offers better opportunities.

Signs It’s Time to Leave a Job

Signs it’s time to leave a job usually show up as patterns, not one bad day. If your work-related stress is constant, your motivation is gone, and your work-life balance can’t recover even after rest, treat that as a career decision-making signal not a personal failure. Job dissatisfaction signs often look dreadful on Sunday night, irritability that follows you home, or feeling “numb” at work because you’re mentally checked out.

A toxic work environment is another clear marker. If you’re dealing with chronic disrespect, retaliation for speaking up, unclear expectations that change to blame you, or ongoing issues that leadership refuses to address, staying can slowly damage confidence and performance. Burnout at work is especially important to take seriously. 

When your mental health and career decisions collide, it’s usually because the job is demanding more than it’s giving back and the cost can be sleep, relationships, and long-term health.

Use this quitting a job checklist to keep emotions from driving the decision:

• Identify the pattern (what’s happening, how often, and for how long)
• Document specific examples (workload, behavior, missed commitments, health impacts)
• Try one “fix” conversation (role clarity, workload reset, manager support) with a firm deadline
• Confirm income stability and health insurance coverage options before you resign
• Start job transition planning (resume preparation, networking, interview availability)

If the pattern stays the same after you take reasonable steps, leaving becomes a strategic resignation not a reaction.

Explaining Your Circumstances During Job Interviews

If you have a history of leaving jobs without having another one lined up, recruiters and potential hiring managers may be curious why you did not find a job while still working. It is essential to state why you left your job and what you have done to prepare yourself for your chosen next move.  

Let’s say that you decided to leave your job because your commute became too long. Explain to the interviewer that you have been networking with people in your field, taking classes to gain job skills, updating your resume, and researching various companies in your target industry.  

If you left your job because you had difficulty getting along with your boss, explain to the interviewer that you have taken personal development courses and focused on building your self-confidence. You could also note that you have been networking with people in your field and researching various companies in the industry. 

Career Stagnation and How Long to Stay at a Job

Career stagnation is one of the most common reasons people start deciding to quit a job, but it’s also one of the easiest to misread. A slow quarter is normal. A full year of repeated work, no new skills, and no meaningful feedback is a professional growth problem. If you can’t point to new responsibilities, measurable impact, or skill development in the last 6–12 months, you’re likely in a stagnation cycle.

So, how long do you stay at a job? There isn’t one perfect rule, but a helpful standard is: stay long enough to learn, deliver outcomes, and leave with a clear story. If you’ve earned results and the role still can’t stretch you, leaving for career progression can be the smarter move.

Job hopping concerns usually come down to patterns. One short stint can be explained. Several short stints without a consistent reason can look risky. If you’re considering a move sooner than planned, make it strategic: define what you’re moving toward (scope, leadership, compensation, flexibility) and what you’re moving away from (limited growth, mismatch, burnout). That clarity protects your resume and improves your next job match.

Explaining Your Decision to Leave

Potential employers may ask why you left your previous role without securing another job. Be prepared to explain your decision professionally:

• Highlight proactive steps. For example, if long commutes influenced your decision, emphasize that you’ve been networking, updating your skills, and targeting roles closer to home.
• Focus on growth. If workplace conflicts prompted your resignation, explain that you’ve taken steps like attending personal development courses and building better strategies for team collaboration.

By framing your decision positively, you demonstrate that leaving your job was a strategic move to advance your career.

Employment Gap Explanation That Keeps You Credible

If you’re quitting a job without another job lined up, your employment gap explanation needs to sound intentional, structured, and forward-looking. Most recruiters aren’t scared of a gap; they’re wary of a gap that looks unplanned or repeated without growth. Your goal is to explain the decision to quit a job in one or two sentences, then quickly shift to what you did next.

A strong interview-ready structure is: reason → responsibility → readiness. Example: “I left because the role became unsustainable for my health and performance. I took a short break to reset, then focused on skill development and targeted roles where I can deliver long-term impact.” That keeps your mental health and career decisions honest without oversharing.

To strengthen credibility, point to specific actions: training completed, portfolio updates, volunteer projects, structured networking, and a clear target role. If burnout at work was part of your story, show that you addressed it directly and learned how to prevent it going forward (boundaries, workload management, clearer role expectations). For practical tools on recovery without losing momentum, see deal with burnout guidance.

Steps to Take Before Resigning

If you’re unsure when to know to leave a job, consider these preparatory steps:

1. Evaluate Career Goals
   Clarify your career objectives and determine whether your current role aligns with them. If not, research opportunities that better match your aspirations.
2. Save for Financial Security
   Build a financial cushion to cover essential expenses for three to six months, providing peace of mind during your transition.
3. Build Your Network
   Strengthen your professional connections through LinkedIn, networking events, and industry groups. A strong network can accelerate your job search.
4. Enhance Your Skills
   Take courses, earn certifications, or gain experiences that improve your qualifications for your target roles.
5. Optimize Your Resume and Online Presence
   Tailor your resume to showcase achievements relevant to your desired job and align your LinkedIn profile with your career goals.

Job Market Timing and Strategic Resignation Planning

Job market timing matters more than most people think. If hiring in your field is seasonal, slow, or driven by budgets, your resignation timing should follow the market, not just frustration. This is where job transition planning becomes your advantage: you reduce risk by aligning your exit with real opportunity.

A strategic resignation usually means you start the job search while employed, even if you’re already sure you want to leave. Being employed protects income stability, keeps benefits steady, and often strengthens your negotiating position. If your situation is urgent (health impact, toxic work environment), you can still plan a safe landing by tightening your timeline and focusing on high-probability roles.

Two practical signals that it’s time to shift from “thinking” to “moving”: (1) you’ve updated your resume preparation and your story for resignation vs re-sign, and (2) you’ve validated demand through conversations and interviews. Networking while job searching is the fastest way to do that warm intros routinely beat cold applications. If you want a focused plan for searching without tipping off your employer, use job search tactics that protect confidentiality while keeping momentum.

Conclusion

Hopefully, you now have a better idea of whether you should quit your job to pursue a new job opportunity before receiving your dream position. If you are planning on leaving your current job without having another one lined up but are not sure about it, you should definitely research possible career paths first and plan how you will take action, before submitting your resignation.

If you are now certain of what path to take, we can help! At Pathwise, we provide career development solutions that can help you be successful. We’ve built all that experience into our offerings and drawn from the wisdom of our advisory panel of career thought leaders. We’re here to make it easier for you.

Get in touch with us today to see how we can help. Check out our website to learn more about the coaching and career services we offer or email us at [email protected].