ROSELAND, N.J., July 28, 2021 /PRNewswire/ -- U.S.
wage growth among job switchers increased 5.8 percent since
June 2020 according to the ADP
Research Institute® Workforce Vitality
Report (WVR) released today. Overall wage growth decelerated
to 2.3 percent in the second quarter, down from a 6 percent average
in the first quarter 2021. Employment growth took a positive turn
in the second quarter and increased by 3.5 percent in June
2021.
![Chart 1: Yearly Wage & Employment Growth – June 2021. Yearly U.S. wage and employment growth according to the ADP Workforce Vitality Report by the ADP Research Institute. Chart 1: Yearly Wage & Employment Growth – June 2021. Yearly U.S. wage and employment growth according to the ADP Workforce Vitality Report by the ADP Research Institute.](https://mma.prnewswire.com/media/1582676/ADP_July_Workforce_Report_chart.jpg)
"ADP data shows a rise in U.S. job switchers across industries
along with increased wage growth for switchers," said Nela Richardson, chief economist, ADP. "The
increase in wage growth for job switchers could be driven by
employers struggling to find talent and are willing to offer
competitive compensation to secure employees. Leisure and
hospitality, which experienced the greatest job loss due to the
pandemic, is a notable exception to this overall trend. While
leisure and hospitality led employment gains in the first half of
2021, it is the only industry where both job holders and job
switchers are earning lower wages on average compared to a year
earlier."
Employment growth year-over-year increased 3.5 percent, although
construction, manufacturing, resources and mining, as well as
information sectors saw employment shrink. Leisure and hospitality
saw the biggest gain with 13 percent employment growth. This sector
also experienced the smallest wage growth, likely due to the
increase in low wage workers entering the sector. Specifically, job
holders and job switchers both reported a decline in wage growth at
-1.39 percent and -1.27 percent.
Table 1: Wage and Employment Growth by Industry –
June 2021
Industry
|
Wages
|
YOY Wage
Growth
|
Yearly
Growth
|
All
|
Holders
|
Entrants
|
Switchers
|
Employment
Growth
|
Switching
Rate
|
-ALL-
|
$30.85
|
2.32%
|
3.08%
|
3.26%
|
5.83%
|
3.47%
|
20.39%
|
Goods
|
|
|
|
|
|
|
|
Construction
|
$30.86
|
4.23%
|
4.50%
|
5.81%
|
5.94%
|
-1.91%
|
14.74%
|
Manufacturing
|
$32.09
|
2.45%
|
3.36%
|
6.17%
|
6.73%
|
-0.63%
|
16.78%
|
Resources and
Mining
|
$39.35
|
-0.50%
|
6.06%
|
0.00%
|
11.81%
|
-1.27%
|
5.33%
|
Services
|
|
|
|
|
|
|
|
Information
|
$45.39
|
2.63%
|
3.74%
|
3.97%
|
9.75%
|
-4.27%
|
20.05%
|
Finance and
Real Estate
|
$36.13
|
1.55%
|
3.89%
|
5.73%
|
7.84%
|
0.96%
|
16.83%
|
Professional
and Business
Services
|
$39.31
|
4.37%
|
4.72%
|
7.53%
|
9.59%
|
3.73%
|
22.84%
|
Education and
Health
Services
|
$28.89
|
1.61%
|
1.92%
|
3.51%
|
4.46%
|
4.11%
|
18.69%
|
Leisure and
Hospitality
|
$18.96
|
-2.12%
|
-1.39%
|
0.18%
|
-1.27%
|
13.32%
|
26.03%
|
Trade,
Transportation,
and Utilities
|
$27.24
|
4.89%
|
4.12%
|
0.41%
|
2.21%
|
3.03%
|
23.42%
|
Across the U.S., most regions experienced similar wage growth,
except for the Northeast which experienced minimal wage growth at
0.9 percent. However, the Northeast saw the highest overall
employment growth regionally at 5.8 percent. Job switchers also
fared better in the Northeast and the West with wage growth of 8.0
and 7.1 percent respectively. By firm size, larger firms did better
both from a wage and employment perspective compared to small
businesses.
Table 2: Wage and Employment Growth by Region and Firm
Size – June 2021
Region
|
Wages
|
YOY Wage
Growth
|
Yearly
Growth
|
All
|
Holders
|
Entrants
|
Switchers
|
Employment
Growth
|
Switching
Rate
|
-USA-
|
$30.85
|
2.3%
|
3.1%
|
3.3%
|
5.8%
|
3.5%
|
20.4%
|
MIDWEST
|
$28.49
|
2.4%
|
1.7%
|
4.3%
|
3.0%
|
0.7%
|
19.2%
|
NORTHEAST
|
$34.90
|
0.9%
|
3.0%
|
3.7%
|
8.0%
|
5.8%
|
21.0%
|
SOUTH
|
$28.58
|
2.3%
|
3.5%
|
3.0%
|
5.6%
|
3.4%
|
20.7%
|
WEST
|
$33.61
|
3.0%
|
3.7%
|
3.3%
|
7.1%
|
4.5%
|
20.6%
|
Company
Size
|
|
|
|
|
|
|
|
-ALL-
|
$30.85
|
2.3%
|
3.1%
|
3.3%
|
5.8%
|
3.5%
|
20.4%
|
49 or less
|
$27.75
|
0.7%
|
2.3%
|
3.6%
|
4.6%
|
2.7%
|
15.8%
|
50 to 499
|
$30.80
|
2.5%
|
3.8%
|
4.2%
|
6.0%
|
2.4%
|
21.7%
|
500 to 999
|
$31.92
|
1.8%
|
2.2%
|
4.1%
|
3.2%
|
4.5%
|
20.2%
|
1000 or
more
|
$32.50
|
3.1%
|
3.4%
|
2.3%
|
6.9%
|
4.5%
|
22.6%
|
There was a slight uptick in voluntary job switching, increasing
by 1 percentage point in June 2021.
Leisure and hospitality saw the largest jump in switching rate,
increasing by 5 percentage points in June
2021. Leisure and hospitality was hit the hardest during the
pandemic, and as more businesses have re-opened and restrictions
loosened, job opportunities have become more plentiful. Among the
genders, female switchers continue to outpace males in wage growth,
albeit from a lower wage level.
Table 3: Wage and Switching Rate by Industry and Gender –
June 2021
Industry
|
Gender
|
Share
|
Switching
Rate
|
Switching
Wage
|
Switchers'
Wage Growth
|
ALL
|
Female
|
48%
|
21.3%
|
$27.79
|
6.4%
|
Male
|
52%
|
19.6%
|
$32.61
|
5.5%
|
Construction
|
Female
|
23%
|
15.5%
|
$27.18
|
6.2%
|
Male
|
77%
|
14.5%
|
$29.33
|
6.0%
|
Manufacturing
|
Female
|
35%
|
18.3%
|
$36.19
|
8.0%
|
Male
|
65%
|
16.1%
|
$36.37
|
6.1%
|
Finance &
Real
Estate
|
Female
|
54%
|
16.8%
|
$31.80
|
7.4%
|
Male
|
46%
|
16.8%
|
$39.40
|
8.6%
|
Information
|
Female
|
41%
|
20.1%
|
$48.86
|
10.1%
|
Male
|
59%
|
20.0%
|
$55.76
|
9.7%
|
Professional
&
Business Serv
|
Female
|
48%
|
24.5%
|
$38.90
|
9.3%
|
Male
|
52%
|
21.5%
|
$45.56
|
10.1%
|
Education &
Health
|
Female
|
77%
|
19.4%
|
$24.78
|
4.1%
|
Male
|
23%
|
16.5%
|
$34.13
|
5.6%
|
Leisure &
Hospitality
|
Female
|
51%
|
26.2%
|
$15.08
|
-2.7%
|
Male
|
49%
|
25.9%
|
$16.61
|
-0.2%
|
Trade,
Transportation
& Utilities
|
Female
|
42%
|
25.0%
|
$24.33
|
5.8%
|
Male
|
58%
|
22.4%
|
$27.19
|
0.5%
|
Employment growth for all age groups increased as the economy
continued to reopen and COVID-19 related restrictions were lifted
in second quarter 2021. Most notably, workers age 24 or less saw
the greatest employment growth of 13.5 percent in June 2021. As a result of the pandemic, younger
workers suffered the greatest job loss, and therefore have the most
to gain as they reenter the workforce. However, wage growth has
slowed across age groups.
Table 4: Wages by Gender and Age – June 2021
|
|
24 or
less
|
25 to
34
|
35 to
54
|
55 or
more
|
-ALL-
|
Employment
Growth
|
-ALL-
|
13.5%
|
1.0%
|
1.1%
|
4.4%
|
3.5%
|
Female
|
19.4%
|
1.9%
|
1.4%
|
4.9%
|
4.9%
|
Male
|
7.5%
|
0.2%
|
0.9%
|
4.0%
|
2.2%
|
Wage
Growth
|
-ALL-
|
0.9%
|
3.1%
|
3.1%
|
1.7%
|
2.3%
|
Female
|
0.7%
|
4.2%
|
4.1%
|
1.9%
|
2.8%
|
Male
|
1.5%
|
2.3%
|
2.4%
|
1.7%
|
2.1%
|
Wage Level
|
-ALL-
|
$15.99
|
$26.45
|
$35.04
|
$35.14
|
$30.85
|
Female
|
$15.10
|
$25.11
|
$31.00
|
$29.22
|
$27.25
|
Male
|
$16.85
|
$27.57
|
$38.27
|
$39.68
|
$33.81
|
Males Earning
More
|
12%
|
10%
|
23%
|
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 June 2021, including
data broken down by region, firm size, industry, gender, and age
visit http://workforcereport.adp.com/. The third quarter 2021
ADP Workforce Vitality Report will be released on
Wednesday, October 27, 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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