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How long have you been on the job hunt? But I would keep searching and network as much as you can. This is a very tough labor market, but if you stick with it, the right role will come around.
I've been looking since November - I'll keep going
Hopefully eventually - fingers crossed
How much are we talking?
Don’t know the field, but if mental health and morale are at risk at your current job, I would take the pay-cut. You can also see if the new job will provide upward mobility alongside better working conditions. A pay cut today might be an investment for the future if done strategically —but you really really need to think it through and map it out as it can backfire—