ROSELAND, N.J., Jan. 26, 2022 /PRNewswire/ -- Fourth quarter
U.S. wage growth increased 4.4 percent. Wage growth for both
job holders and job switchers hit all-time highs of 5.9 percent and
8.0 percent respectively, according to the ADP Research
Institute® Workforce Vitality
Report (WVR) released today. In fact, wage growth for
Generation Z (24 years old and younger) job holders saw the largest
wage gains in December 2021 at 13.1
percent. Employment growth increased by 5.0 percent in December
2021.
![Chart 1: Yearly Wage & Employment Growth – December 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 – December 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/1734229/ADP___Yearly_Wage_and_Employment_Growth.jpg)
"ADP data showed U.S. wage growth increased 4.4 percent on
average for all workers in December
2021, with job switchers and younger job holders who saw the
largest wage growth," said Nela
Richardson, chief economist, ADP. "Leisure and hospitality,
which experienced the greatest job loss due to the pandemic, was 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 job switchers' wages were basically flat on
average in December 2021 compared to
previous year."
Employment growth year-over-year increased 5.0 percent, with all
sectors experiencing employment growth. While leisure and
hospitality led the way with a 17.7 percent increase, overall
employment levels for the sector remain below their high-water mark
prior to the pandemic. However, wage growth for job holders and job
switchers was the strongest in industries including professional
business services (12.2 percent) and information technology (12.2
percent).
Table 1: Wage and Employment Growth by Industry –
December 2021
Industry
|
|
YOY Wage
Growth
|
Yearly
Growth
|
All
|
All
|
Holders
|
Entrants
|
Switchers
|
Employment
Growth
|
Switching
Rate
|
-ALL-
|
$31.53
|
4.4%
|
5.9%
|
3.0%
|
8.0%
|
5.0%
|
22.0%
|
Construction
|
$31.56
|
4.1%
|
6.1%
|
4.7%
|
7.3%
|
4.5%
|
16.0%
|
Education and Health
Services
|
$29.67
|
3.6%
|
5.5%
|
3.6%
|
5.0%
|
3.6%
|
20.5%
|
Finance and Real
Estate
|
$36.90
|
3.8%
|
5.4%
|
0.2%
|
9.9%
|
1.4%
|
17.1%
|
Information
|
$46.92
|
6.5%
|
6.0%
|
6.0%
|
12.2%
|
1.8%
|
18.3%
|
Leisure and
Hospitality
|
$19.38
|
2.1%
|
6.7%
|
4.5%
|
0.4%
|
17.7%
|
29.4%
|
Manufacturing
|
$32.71
|
3.9%
|
6.0%
|
6.8%
|
8.7%
|
3.2%
|
18.4%
|
Other
Services
|
$26.24
|
2.2%
|
5.1%
|
-0.7%
|
5.7%
|
5.4%
|
15.5%
|
Professional and
Business Services
|
$40.56
|
6.2%
|
6.4%
|
7.5%
|
12.2%
|
3.9%
|
25.4%
|
Resources and
Mining
|
$36.11
|
-10.3%
|
5.2%
|
0.0%
|
8.8%
|
9.5%
|
5.1%
|
Trade,
Transportation, and Utilities
|
$27.88
|
8.4%
|
6.8%
|
-1.6%
|
5.7%
|
3.4%
|
24.1%
|
Across the U.S., all regions experienced wage growth over 3.0
percent. While job switchers saw record-setting wage growth, job
switchers in the West and Northeast received the biggest gain at
9.2 percent and 9.0 percent. By firm size, midsized companies with
500 to 999 employees increased wages the fastest, up 9.1 percent in
December 2021 from one year
prior.
Table 2: Wage and Employment Growth by Region and Firm
Size – December 2021
Region
|
|
YOY Wage
Growth
|
Yearly
Growth
|
Wages
|
All
|
Holders
|
Entrants
|
Switchers
|
Employment
Growth
|
Switching
Rate
|
-USA-
|
$31.53
|
4.4%
|
5.9%
|
3.0%
|
8.0%
|
5.0%
|
22.0%
|
MIDWEST
|
$29.23
|
4.1%
|
5.9%
|
3.7%
|
7.2%
|
3.7%
|
20.9%
|
NORTHEAST
|
$35.55
|
3.8%
|
5.5%
|
2.9%
|
9.0%
|
5.6%
|
22.6%
|
SOUTH
|
$29.21
|
4.6%
|
5.9%
|
1.7%
|
7.1%
|
4.5%
|
22.4%
|
WEST
|
$34.31
|
4.7%
|
6.1%
|
4.0%
|
9.2%
|
6.7%
|
22.1%
|
Company
Size
|
|
|
|
-ALL-
|
$31.53
|
4.4%
|
5.9%
|
3.0%
|
8.0%
|
5.0%
|
22.0%
|
49 or less
|
$28.43
|
2.5%
|
5.1%
|
3.8%
|
6.0%
|
4.8%
|
17.8%
|
50 to 499
|
$31.67
|
4.7%
|
6.1%
|
5.3%
|
8.1%
|
3.7%
|
23.5%
|
500 to 999
|
$32.68
|
5.9%
|
6.3%
|
5.7%
|
9.1%
|
5.8%
|
21.8%
|
1000 or
more
|
$33.07
|
4.9%
|
6.1%
|
1.1%
|
8.3%
|
5.8%
|
24.0%
|
Wage gains for job switchers saw tremendous increases overall,
with double digit increases for job switchers in industries
including finance, information technology and professional business
services with an average wage of $18.04 for females and $19.66 for males.
Table 3: Wage and Switching Rate by Industry and Gender –
December 2021
Industry
|
Gender
|
Share
|
Switching
Rate
|
Switching
Wage
|
Switchers'
Wage
Growth
|
ALL
|
Female
|
48%
|
23.00%
|
$29.08
|
8.07%
|
Male
|
52%
|
21.15%
|
$34.41
|
7.88%
|
Construction
|
Female
|
21%
|
16.56%
|
$28.93
|
5.98%
|
Male
|
79%
|
15.88%
|
$31.32
|
7.58%
|
Manufacturing
|
Female
|
31%
|
20.03%
|
$38.13
|
9.89%
|
Male
|
69%
|
17.62%
|
$37.47
|
8.13%
|
Finance & Real
Estate
|
Female
|
54%
|
16.90%
|
$31.83
|
9.74%
|
Male
|
46%
|
17.24%
|
$43.08
|
10.30%
|
Information
|
Female
|
38%
|
18.90%
|
$50.16
|
12.70%
|
Male
|
62%
|
17.97%
|
$55.84
|
12.15%
|
Professional &
Business Serv
|
Female
|
46%
|
26.99%
|
$39.15
|
12.58%
|
Male
|
54%
|
24.17%
|
$49.32
|
12.13%
|
Education &
Health
|
Female
|
75%
|
21.08%
|
$24.76
|
4.57%
|
Male
|
25%
|
18.56%
|
$31.86
|
6.13%
|
Leisure &
Hospitality
|
Female
|
49%
|
29.40%
|
$18.04
|
-1.38%
|
Male
|
51%
|
29.44%
|
$19.66
|
1.80%
|
Trade,
Transportation & Utilities
|
Female
|
39%
|
26.07%
|
$24.66
|
7.37%
|
Male
|
61%
|
22.83%
|
$27.64
|
4.77%
|
Across all age groups, wage growth was strongest among workers
24 years old and younger at 6.8 percent in December 2021. In contrast workers over 55, saw
wage gains at just 2.7 percent. Wage gains for females outpaced
male wages in December 2021, albeit
from a lower base.
Table 3: Wages by Gender and Age – December 2021
|
|
24 or
less
|
25 to
34
|
35 to
54
|
55 or
more
|
-ALL-
|
Wage
Growth
|
-ALL-
|
6.8%
|
5.9%
|
4.1%
|
2.7%
|
4.4%
|
Female
|
7.1%
|
7.4%
|
5.7%
|
3.3%
|
5.7%
|
Male
|
6.6%
|
4.5%
|
3.0%
|
2.3%
|
3.4%
|
Job Holder Wage
Growth
|
-ALL-
|
13.1%
|
9.2%
|
5.6%
|
3.5%
|
5.9%
|
Job Switcher Wage
Growth
|
-ALL-
|
7.3%
|
11.6%
|
9.4%
|
4.8%
|
8.0%
|
Wage Level
|
-ALL-
|
$16.89
|
$27.19
|
$35.61
|
$35.69
|
$31.53
|
Female
|
$16.05
|
$26.03
|
$31.65
|
$29.68
|
$28.00
|
Male
|
$17.70
|
$28.17
|
$38.78
|
$40.35
|
$34.44
|
Employment
Growth
|
-ALL-
|
7.2%
|
2.4%
|
4.5%
|
7.7%
|
5.0%
|
Female
|
8.0%
|
1.6%
|
4.2%
|
8.0%
|
4.9%
|
Male
|
6.4%
|
3.2%
|
4.8%
|
7.4%
|
5.2%
|
Males Earning
More
|
|
10%
|
8%
|
23%
|
36%
|
23%
|
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 December 2021,
including data broken down by region, firm size, industry, gender,
and age visit http://workforcereport.adp.com/.
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 © 2022 ADP, Inc.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/us-wage-growth-increased-substantially-by-4-4-percent-wage-growth-for-both-job-holders-and-switchers-reached-all-time-highs-of-5-9-percent-and-8-0-percent-respectively-as-firms-compete-to-retain-and-attract-workers-301468513.html
SOURCE ADP, Inc.