ROSELAND, N.J., April 28, 2021 /PRNewswire/ -- U.S. job switching
rate declines 2.0 percentage points since the start of the pandemic
in March 2020, while wages for U.S.
workers grew 5.9 percent over the last year, increasing the average
wage level by $1.71 to $30.84 an hour according to the ADP Research
Institute® Workforce Vitality
Report (WVR) released today. Employment growth demonstrated a
continued downward slide by -7.0 percent. The average wage
growth is higher than expected as a result of significant job
losses among low wage earners, which increased the average.
![Chart 1: Yearly Wage & Employment Growth – March 2021, according to the ADP Workforce Vitality Report by the ADP Research Institute. Chart 1: Yearly Wage & Employment Growth – March 2021, according to the ADP Workforce Vitality Report by the ADP Research Institute.](https://mma.prnewswire.com/media/1498278/ADP_Yearly_Wage_and_Employment_Growth_March_2021.jpg)
"The significance of this data is a pre- and post-pandemic
assessment of the labor market, from March
2020 compared to one year later in March 2021," said Nela
Richardson, chief economist, ADP. "Our data shows a decline
in job switching, pointing to the pandemic's effect on worker
sentiment of the job market. This decline in job switching shows
workers staying put, perhaps apprehensive to make the switch or
rather, embracing existing job opportunities brought on by the
pandemic such as promotions and additional responsibilities, likely
another reason to hold their current job. As the workforce moves
beyond the one-year mark, we'll be keeping a close watch on how job
switching behaviors change and evolve as the economy rebounds."
Employment growth year-over-year continued a downward slide with
-7.0 percent due to COVID-19, yet at a slightly slower pace than we
have seen in past months. Individual industry employment trends
were unchanged with leisure and hospitality remaining as the
hardest hit and the finance industry the least impacted.
Additionally, the leisure and hospitality and trade sectors both
show larger wage growth over other sectors, due to greater loss of
low wage job in these sectors.
Table 1: Wage and Employment Growth by Industry –
March 2021
Industry
|
Wages
|
YOY Wage
Growth
|
Yearly
Growth
|
All
|
Holders
|
Entrants
|
Switchers
|
Employment
Growth
|
Switching
Rate
|
-ALL-
|
$30.84
|
5.9%
|
4.5%
|
6.2%
|
4.9%
|
-7.0%
|
18.8%
|
Goods
|
|
|
|
|
|
|
|
Construction
|
$30.68
|
4.1%
|
4.5%
|
7.4%
|
4.3%
|
-2.4%
|
12.9%
|
Manufacturing
|
$31.90
|
4.8%
|
4.2%
|
5.6%
|
5.8%
|
-4.3%
|
16.2%
|
Resources and
Mining
|
$39.75
|
13.6%
|
2.9%
|
0.0%
|
12.9%
|
-11.5%
|
4.7%
|
Services
|
|
|
|
|
|
|
|
Information
|
$44.81
|
4.1%
|
4.0%
|
9.3%
|
9.4%
|
-11.0%
|
19.3%
|
Finance and Real
Estate
|
$36.11
|
4.8%
|
4.4%
|
12.7%
|
5.8%
|
-1.7%
|
15.2%
|
Professional and
Business Services
|
$38.93
|
5.3%
|
4.0%
|
8.0%
|
8.4%
|
-5.5%
|
21.4%
|
Education and Health
Services
|
$28.82
|
4.8%
|
4.0%
|
5.9%
|
3.9%
|
-4.0%
|
17.8%
|
Leisure and
Hospitality
|
$19.22
|
7.8%
|
5.9%
|
2.5%
|
-1.0%
|
-22.4%
|
21.2%
|
Trade,
Transportation, and Utilities
|
$27.24
|
5.7%
|
4.7%
|
5.3%
|
1.1%
|
-4.6%
|
22.3%
|
Regionally, wage growth has been consistently higher in the
Northeast followed by the West. Though employment growth is still
negative across all regions, the West saw the least impact. Job
switchers also fared better in the Northeast and the West with wage
growth of 6.9 and 5.9 percent respectively. By firm size, larger
firms did better both from wage and employment perspective compared
to small businesses.
Table 2: Wage and Employment Growth by Region and Firm
Size – March 2021
Region
|
Wages
|
YOY Wage
Growth
|
Yearly
Growth
|
All
|
Holders
|
Entrants
|
Switchers
|
Employment
Growth
|
Switching
Rate
|
-USA-
|
$30.84
|
5.9%
|
4.5%
|
6.2%
|
4.9%
|
-7.0%
|
18.8%
|
MIDWEST
|
$28.49
|
4.9%
|
4.4%
|
7.0%
|
2.2%
|
-7.6%
|
17.6%
|
NORTHEAST
|
$35.18
|
7.2%
|
4.4%
|
8.2%
|
6.9%
|
-9.9%
|
19.6%
|
SOUTH
|
$28.48
|
5.0%
|
4.3%
|
6.8%
|
4.8%
|
-5.9%
|
19.0%
|
WEST
|
$33.51
|
6.7%
|
4.9%
|
4.7%
|
5.9%
|
-5.7%
|
19.1%
|
Company
Size
|
|
|
|
|
|
|
|
-ALL-
|
$30.84
|
5.9%
|
4.5%
|
6.2%
|
4.9%
|
-7.0%
|
18.8%
|
49 or less
|
$27.93
|
4.7%
|
4.4%
|
6.4%
|
3.7%
|
-8.7%
|
14.0%
|
50 to 499
|
$30.96
|
5.8%
|
4.2%
|
5.5%
|
5.1%
|
-8.7%
|
20.0%
|
500 to 999
|
$31.53
|
4.0%
|
4.7%
|
5.4%
|
2.4%
|
-5.0%
|
18.5%
|
1000 or
more
|
$32.33
|
6.7%
|
4.7%
|
5.9%
|
5.9%
|
-5.0%
|
21.3%
|
Job switching declined on average by 2.0 percentage points
across all industries; however, there were some differences among
industries. Job switching in the finance sector declined by 2.0
percentage points, whereas leisure and hospitality declined by
almost 4.0 percentage points. This practically double percentage
point drop in job switching is due to the significant job loss in
leisure and hospitality which limited job opportunities to switch
into that industry.
The distribution of job switchers across gender remained the
same from pre-pandemic to now. While wages for male job switchers
were higher overall, wage growth was higher for females. This is
indicative of the lower wage levels females currently receive.
Table 3: Wage and Switching Rate by Industry and Gender –
March 2021
Industry
|
Gender
|
Share
|
Switching
Rate
|
Switching
Wage
|
Switchers'
Wage
Growth
|
ALL
|
Female
|
48%
|
19.6%
|
$28.73
|
5.7%
|
Male
|
52%
|
18.1%
|
$34.41
|
4.5%
|
Construction
|
Female
|
20%
|
13.7%
|
$26.97
|
5.2%
|
Male
|
80%
|
12.7%
|
$27.36
|
4.4%
|
Manufacturing
|
Female
|
33%
|
17.5%
|
$39.17
|
7.1%
|
Male
|
67%
|
15.6%
|
$37.55
|
5.2%
|
Finance & Real
Estate
|
Female
|
55%
|
15.1%
|
$29.58
|
6.1%
|
Male
|
45%
|
15.2%
|
$43.51
|
6.2%
|
Information
|
Female
|
38%
|
19.5%
|
$45.80
|
10.2%
|
Male
|
62%
|
19.2%
|
$56.90
|
9.5%
|
Professional &
Business Serv
|
Female
|
48%
|
22.7%
|
$38.47
|
7.7%
|
Male
|
52%
|
20.4%
|
$47.22
|
9.2%
|
Education &
Health
|
Female
|
78%
|
18.4%
|
$23.63
|
4.3%
|
Male
|
22%
|
15.8%
|
$31.81
|
3.3%
|
Leisure &
Hospitality
|
Female
|
54%
|
21.1%
|
$17.09
|
-2.5%
|
Male
|
46%
|
21.4%
|
$21.68
|
0.2%
|
Trade, Transportation
& Utilities
|
Female
|
39%
|
23.8%
|
$26.65
|
4.9%
|
Male
|
61%
|
21.3%
|
$27.32
|
-0.7%
|
Compared to last year, the disparity in wages between male and
females increased with age. The hourly wage for males is 7 percent
higher for those 24-years-old and younger, whereas the hourly wage
for males is 36 percent higher compared to females in the 55+ age
group.
Table 3: Wages by Gender and Age – March 2021
|
|
24 or
less
|
25 to
34
|
35 to
54
|
55 or
more
|
-ALL-
|
Employment
Growth
|
-ALL-
|
-10.5%
|
-8.6%
|
-5.5%
|
-5.4%
|
-7.0%
|
Female
|
-8.7%
|
-9.0%
|
-6.8%
|
-7.1%
|
-7.7%
|
Male
|
-12.5%
|
-8.3%
|
-4.3%
|
-3.9%
|
-6.2%
|
Wage
Growth
|
-ALL-
|
5.1%
|
5.6%
|
5.6%
|
5.4%
|
5.9%
|
Female
|
6.9%
|
6.5%
|
6.9%
|
6.0%
|
6.8%
|
Male
|
3.7%
|
4.9%
|
4.6%
|
4.8%
|
5.2%
|
Wage Level
|
-ALL-
|
$16.24
|
$26.17
|
$34.79
|
$35.06
|
$30.84
|
Female
|
$15.65
|
$24.81
|
$30.71
|
$29.06
|
$27.20
|
Male
|
$16.81
|
$27.33
|
$38.05
|
$39.66
|
$33.82
|
Males Earning
More
|
7%
|
10%
|
24%
|
36%
|
24%
|
About the ADP Workforce Vitality
Report
The ADP Workforce Vitality Report
(WVR) was developed by the ADP Research Institute. 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/.
Type of Workforce
Holders: Workers who were employed by the same company for the
past 12 months. The wage growth is the rate of change in
wages in that time period.
Switchers: Workers who changed employers between consecutive
months. The wage growth is calculated from the 12 month
moving average of wage growth.
Entrants: First time workers who are less than 25 years
old. The wage growth is calculated from the 12- month moving
average of wages.
To see detailed results from the ADP Workforce Vitality
Report for March 2021, including
data broken down by region, firm size, industry, gender, and age
visit http://workforcereport.adp.com/. The second quarter
2021 ADP Workforce Vitality Report will be released on
Wednesday, July 28, 2021.
About the ADP Research Institute
The mission of the
ADP Research Institute is to generate data-driven discoveries about
the world of work, and to derive reliable economic indicators from
these insights. We offer these findings to the world at large as
our unique contribution to making the world of work better and more
productive, and to bring greater awareness to the economy at
large.
About ADP (NASDAQ-ADP)
Designing better ways to work through cutting-edge products,
premium services and exceptional experiences that enable people to
reach their full potential. HR, Talent, Time Management,
Benefits and Payroll. Informed by data and designed for
people. Learn more at ADP.com.
ADP, the ADP logo, Always Designing for People and ADP
Research Institute are registered trademarks of ADP, Inc.
All other marks are the property of their respective
owners.
Copyright © 2021 ADP, Inc.
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