ROSELAND, N.J., Oct. 24, 2018 /PRNewswire/ -- Wages for U.S.
workers grew 3.5 percent over the last year, increasing the average
wage level by $0.95 to $27.81 an hour, according to the ADP Research
Institute® Workforce Vitality Report (WVR)
released today. The growth, accelerating to 3.5 percent
annual as of September 2018, was
driven by strong wage gains for workers in the professional and
business services industry, representing almost 17 percent of the
workforce, (3.5 percent wage growth, $35.23 average hourly wage) and trade,
representing 22 percent of the workforce, (3.9 percent wage growth,
$24.57 average hourly wage). The West
(4.3 percent, $29.88) and large
businesses (4.8 percent, $28.84) also
contributed. Employees in the resources and mining industry
saw their wages decrease (-0.2 percent, $34.91) and businesses with less than 50
employees experienced the slowest wage growth (2.0 percent,
$25.56).
"Full employment is upon us," said Ahu Yildirmaz, co-head of the
ADP Research Institute. "This is evident in the gradual
slowdown we've seen in overall job switching for the past year,
coupled with an acceleration in wage growth for switchers. As
the labor market tightened, employers focused on providing the pay
and benefits that would attract and retain skilled talent, making
job holders less apt to switch."
Among industries, information continued to lead the way for both
wage level and wage growth. In addition to the top overall
wage growth number of 6.2 percent, those who successfully switched
positions to the information industry had wage growth of 9.8
percent. Employment in the information industry improved to
2.1 percent.
Job switchers in professional and business services and
construction also realized high wage growth of 9.4 and 7.5 percent,
respectively. In trade, the largest sector, job holders experienced
stronger growth in wages than the workers who switched to the
industry, 5.2 percent versus 3.8 percent.
Table 1: Wage and Employment Growth by Industry –
September 2018
Industry
|
Wages
|
YOY Wage
Growth
|
Yearly
Growth
|
All
|
Holders
|
Entrants
|
Switchers
|
Employment
Growth
|
Switching
Rate
|
-ALL-
|
$27.81
|
3.5%
|
5.2%
|
4.1%
|
5.6%
|
1.7%
|
20.9%
|
Goods
|
|
|
|
|
|
|
|
Construction
|
$27.83
|
2.6%
|
5.6%
|
4.1%
|
7.5%
|
3.1%
|
16.5%
|
Manufacturing
|
$28.94
|
3.2%
|
5.2%
|
8.4%
|
5.5%
|
1.6%
|
16.7%
|
Resources and
Mining
|
$34.91
|
-0.2%
|
5.1%
|
-1.8%
|
2.6%
|
7.2%
|
10.7%
|
Services
|
|
|
|
|
|
|
|
Information
|
$42.44
|
6.2%
|
6.3%
|
3.2%
|
9.8%
|
2.1%
|
17.5%
|
Finance and
Real Estate
|
$32.61
|
3.4%
|
5.1%
|
0.5%
|
5.7%
|
1.7%
|
18.4%
|
Professional
and Business
Services
|
$35.23
|
3.5%
|
5.4%
|
6.2%
|
9.4%
|
1.2%
|
24.6%
|
Education and
Health
Services
|
$26.59
|
3.4%
|
4.6%
|
3.2%
|
3.5%
|
2.2%
|
20.2%
|
Leisure and
Hospitality
|
$17.10
|
4.0%
|
5.9%
|
3.9%
|
-1.3%
|
2.4%
|
24.3%
|
Trade,
Transportation,
and Utilities
|
$24.57
|
3.9%
|
5.2%
|
3.1%
|
3.8%
|
1.0%
|
22.2%
|
Workers in the West outpaced other regions with 4.3 percent wage
growth and 2.6 percent employment growth. Job switchers also
fared best in the West experiencing a wage growth of 8.7 percent.
Workers in the South had the lowest wage growth at 2.8 percent and
Midwest had the worst employment growth at 1.1 percent. By firm
size, workers at large firms had the highest wage growth rate at
4.8 percent, with employment growth at 2.4 percent.
Table 2: Wage and Employment Growth by Region and Firm
Size – September 2018
Region
|
Wages
|
YOY Wage
Growth
|
Yearly
Growth
|
All
|
Holders
|
Entrants
|
Switchers
|
Employment
Growth
|
Switching
Rate
|
-USA-
|
$27.81
|
3.5%
|
5.2%
|
4.1%
|
5.6%
|
1.7%
|
20.9%
|
MIDWEST
|
$25.77
|
3.4%
|
5.0%
|
3.8%
|
4.2%
|
1.1%
|
19.8%
|
NORTHEAST
|
$31.26
|
4.1%
|
4.9%
|
5.0%
|
6.0%
|
1.3%
|
22.2%
|
SOUTH
|
$26.09
|
2.8%
|
5.0%
|
3.3%
|
4.0%
|
1.9%
|
20.7%
|
WEST
|
$29.88
|
4.3%
|
5.9%
|
4.7%
|
8.7%
|
2.6%
|
21.2%
|
Company
Size
|
|
|
|
|
|
|
|
-ALL-
|
$27.81
|
3.5%
|
5.2%
|
4.1%
|
5.6%
|
1.7%
|
20.9%
|
49 or less
|
$25.56
|
2.0%
|
4.5%
|
3.2%
|
5.4%
|
0.5%
|
15.0%
|
50 to 499
|
$28.08
|
3.0%
|
5.0%
|
4.4%
|
5.2%
|
1.9%
|
22.8%
|
500 to 999
|
$29.08
|
3.0%
|
5.6%
|
4.6%
|
4.7%
|
2.4%
|
21.5%
|
1000 or
more
|
$28.84
|
4.8%
|
5.6%
|
4.4%
|
6.0%
|
2.4%
|
23.7%
|
The WVR also revealed that more than 20.9 percent of U.S.
employees successfully switched firms in the last year. This
highlights an overall slowdown in job switching. On the other
hand, we have seen wage growth for job switchers gradually
accelerating during this same time period, currently at 5.6
percent. Given that the U.S. labor market is at full
employment, and there is a shortage of skilled labor, this is not
surprising as employers look to attract and retain top talent with
premium wages.
To see detailed workforce vitality components for the third
quarter of 2018, including data broken down by region, firm size,
industry, gender, and age, visit http://workforcereport.adp.com/.
The fourth quarter 2018 ADP Workforce Vitality
Report will be released on Wednesday,
January 23, 2019
About the ADP Workforce Vitality Report
The ADP Workforce Vitality Report (WVR) was developed
by the ADP Research Institute (ADPRI). It is an
unprecedented, in-depth monthly analysis (published quarterly) of
the vitality of the U.S. labor market based on actual data that
identifies labor market trends and dynamics across multiple
dimensions. These dimensions include employment growth, job
switching, wage growth and hours worked. In addition to the
macro data presented in the report, there are also segment-specific
findings by industry, state, gender, age, experience, and pay
level. Established in October
2014, the report methodology was updated in April 2018 utilizing monthly data to include
additional data points and deeper insights. For more
information about the report, please visit
http://workforcereport.adp.com/.
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Copyright © 2018 ADP, LLC.
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