ROSELAND, N.J., April 25, 2018 /PRNewswire/ -- Wages for
U.S. workers grew 2.9 percent over the last year, increasing the
average wage level by $0.57 to
$27.36 an hour, according to the ADP
Research Institute® Workforce Vitality
Report (WVR) released today. The growth, down from 3.1
percent annual growth as of December
2017, was driven by strong wage gains for workers in the
information industry (5.6 percent wage growth, $41.38 average hourly wage), in the West (3.5
percent, $29.27) and from small
businesses (3.3 percent, $25.47). Employees in the resources and
mining industry (1.7 percent, $34.96)
and in the South (2.5 percent, $25.61) had the slowest wage
growth.
![Yearly U.S. wage and employment growth according to the ADP Workforce Vitality Report by the ADP Research Institute. Yearly U.S. wage and employment growth according to the ADP Workforce Vitality Report by the ADP Research Institute.](https://mma.prnewswire.com/media/681682/ADP.jpg)
"In the first quarter of 2018 we saw an acceleration in wage
growth for job switchers," said Ahu Yildirmaz, co-head of the ADP
Research Institute. "Additionally, as the labor market
tightens employers in some industries are paying a premium for
talent with special skills. Job holders, job switchers and
new entrants in the construction and information industries are all
experiencing significant wage growth as employers seek to attract
and retain the skilled labor these industries require."
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 5.6 percent, new entrants into the
information field had 7.6 percent wage growth. Those who
successfully switched positions within the information industry had
wage growth of 8.3 percent. Employment in the information
industry, however, grew just 1.2 percent.
The resources and mining industry had the lowest overall wage
growth, just 1.7 percent. New entrants into the field showed
negative wage growth, at -3.5 percent. Employment in the
resources and mining industry grew 4.2 percent.
Table 1: Wage and Employment Growth by Industry –
March 2018
Industry
|
Wages
|
YOY Wage
Growth
|
Yearly
Growth
|
All
|
Holders
|
Entrants
|
Switchers
|
Employment
Growth
|
Switching
Rate
|
-ALL-
|
$27.36
|
2.9%
|
4.9%
|
5.2%
|
4.4%
|
1.8%
|
21.3%
|
Goods
|
|
|
|
|
|
|
|
Resources and
Mining
|
$34.96
|
1.7%
|
5.4%
|
3.5%
|
3.2%
|
4.2%
|
13.4%
|
Construction
|
$27.56
|
2.2%
|
5.6%
|
6.8%
|
7.3%
|
2.8%
|
15.5%
|
Manufacturing
|
$28.44
|
2.6%
|
4.7%
|
6.5%
|
4.7%
|
1.2%
|
17.5%
|
Services
|
|
|
|
|
|
|
|
Trade,
Transportation, and Utilities
|
$24.11
|
3.1%
|
4.8%
|
6.6%
|
3.0%
|
1.0%
|
22.8%
|
Information
|
$41.38
|
5.6%
|
6.3%
|
7.6%
|
8.3%
|
1.2%
|
17.7%
|
Finance and Real
Estate
|
$32.41
|
2.3%
|
4.7%
|
0.7%
|
6.6%
|
1.6%
|
18.6%
|
Professional and
Business Services
|
$34.79
|
2.9%
|
5.0%
|
4.8%
|
8.6%
|
1.5%
|
25.0%
|
Education and Health
Services
|
$26.17
|
2.8%
|
4.0%
|
2.6%
|
1.0%
|
2.5%
|
20.1%
|
Leisure and
Hospitality
|
$16.77
|
4.3%
|
6.4%
|
3.9%
|
-4.1%
|
2.6%
|
26.1%
|
Workers in the West continued to outpace other regions with 3.5
percent wage growth. Employees who switched firms in the West
experienced 8.2 percent wage growth. Workers in the South had the
lowest wage growth at 2.5 percent. By firm size, workers at small
firms had the highest wage growth rate at 3.3 percent, though
employment growth for small firms was just 0.8 percent.
Table 2: Wage and Employment Growth by Region and Firm
Size – March 2018
Region
|
Wages
|
YOY Wage
Growth
|
Yearly
Growth
|
All
|
Holders
|
Entrants
|
Switchers
|
Employment
Growth
|
Switching
Rate
|
-USA-
|
$27.36
|
2.9%
|
4.9%
|
5.2%
|
4.4%
|
1.8%
|
21.3%
|
MIDWEST
|
$25.41
|
2.8%
|
4.7%
|
4.9%
|
1.9%
|
1.1%
|
20.2%
|
NORTHEAST
|
$30.92
|
3.1%
|
4.8%
|
5.1%
|
5.4%
|
1.3%
|
22.6%
|
SOUTH
|
$25.61
|
2.5%
|
4.6%
|
3.8%
|
3.0%
|
1.8%
|
21.2%
|
WEST
|
$29.27
|
3.5%
|
5.6%
|
7.4%
|
8.2%
|
2.8%
|
21.5%
|
Company
Size
|
|
|
|
|
|
|
|
-ALL-
|
$27.36
|
2.9%
|
4.9%
|
5.2%
|
4.4%
|
1.8%
|
21.3%
|
49 or less
|
$25.47
|
3.3%
|
4.6%
|
4.4%
|
6.0%
|
0.8%
|
15.0%
|
50 to 499
|
$27.65
|
2.9%
|
4.9%
|
5.2%
|
4.2%
|
2.0%
|
23.3%
|
500 to 999
|
$28.69
|
1.4%
|
5.1%
|
3.6%
|
4.4%
|
2.3%
|
22.1%
|
1000 or
more
|
$28.14
|
2.9%
|
5.0%
|
5.8%
|
4.0%
|
2.3%
|
24.3%
|
The WVR also revealed that more than 21.3 percent of U.S.
employees successfully switched firms in the last year. The
highest level of switching was from the information industry to the
professional and business services industry. Of all the
information workers who switched firms, 30 percent switched to the
professional and business services industry.
Table 3: Switchers' Movement by Industry – March 2018
Industry
from
|
Industry
To
|
CONST
|
EDUCH
|
FINRE
|
INFO
|
LEISH
|
MFG
|
PROFE
|
RESM
|
TRADE
|
Construction
|
42.2%
|
5.3%
|
4.8%
|
0.7%
|
12.1%
|
4.9%
|
12.2%
|
0.5%
|
14.6%
|
Education and Health
Services
|
1.4%
|
61.7%
|
3.8%
|
0.6%
|
7.0%
|
2.3%
|
10.7%
|
0.0%
|
9.3%
|
Finance and Real
Estate
|
4.2%
|
14.1%
|
30.7%
|
1.5%
|
9.4%
|
3.3%
|
18.1%
|
0.2%
|
16.2%
|
Information
|
2.0%
|
9.1%
|
6.1%
|
12.8%
|
8.0%
|
5.8%
|
30.2%
|
0.2%
|
23.2%
|
Leisure and
Hospitality
|
3.2%
|
8.4%
|
3.3%
|
0.8%
|
52.1%
|
2.8%
|
11.6%
|
0.1%
|
15.5%
|
Manufacturing
|
4.6%
|
6.5%
|
2.6%
|
1.4%
|
6.7%
|
33.3%
|
15.7%
|
0.4%
|
27.0%
|
Professional and
Business Services
|
3.2%
|
11.5%
|
5.9%
|
3.3%
|
8.9%
|
6.7%
|
40.8%
|
0.3%
|
17.3%
|
Resources and
Mining
|
10.3%
|
2.5%
|
4.5%
|
0.8%
|
2.3%
|
12.5%
|
16.8%
|
30.2%
|
19.2%
|
Trade,
Transportation, and Utilities
|
2.9%
|
9.3%
|
4.1%
|
1.4%
|
12.3%
|
7.8%
|
13.8%
|
0.3%
|
45.6%
|
To see detailed workforce vitality components for the first
quarter of 2018, including data broken down by region, firm size,
industry, gender, and age, visit http://workforcereport.adp.com/.
The second quarter 2018 ADP Workforce Vitality
Report will be released on Wednesday,
July 25, 2018
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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