ROSELAND, N.J., Oct. 23, 2019 /PRNewswire/ -- Wages for U.S.
workers grew 3.2 percent over the last year, increasing the average
wage level by $0.90 to $28.71 an hour, according to the ADP Research
Institute® Workforce Vitality Report (WVR)
released today. The wage growth of 3.2 percent corresponds to the
BLS numbers of 2.9 percent which was released earlier this month,
October 2019.
"The labor market has shown signs of a slowdown. After
accelerating at the start of 2019, annual employment growth has
leveled off to a modest 1.7 percent in September," said Ahu
Yildirmaz, co-head of the ADP Research Institute. "While job
switchers continue to enjoy wage growth of 5.1 percent, employers
appear to have reached the limit of what they are willing to pay
workers to entice them to switch jobs."
Job switchers receive an average wage increase of 5.1 percent
when they moved to a new employer. Wage growth for job switchers
varies significantly across industries (ranging between -3 percent
to 10 percent). Construction, Finance, Information, some
parts of the Professional Services industry are still outperforming
the overall average.
Table 1: Wage and Employment Growth by Industry –
September 2019
Industry
|
Wages
|
YOY Wage
Growth
|
Yearly
Growth
|
All
|
Holders
|
Entrants
|
Switchers
|
Employment
Growth
|
Switching
Rate
|
-ALL-
|
$28.71
|
3.2%
|
4.8%
|
5.5%
|
5.1%
|
1.7%
|
20.8%
|
Goods
|
|
|
|
|
|
|
|
Construction
|
$28.90
|
3.7%
|
5.1%
|
2.3%
|
8.3%
|
4.7%
|
15.9%
|
Manufacturing
|
$30.11
|
4.0%
|
5.0%
|
2.9%
|
5.2%
|
0.6%
|
18.6%
|
Resources and
Mining
|
$34.18
|
-2.7%
|
4.5%
|
5.2%
|
2.9%
|
-0.3%
|
10.8%
|
Services
|
|
|
|
|
|
|
|
Information
|
$41.92
|
2.7%
|
5.4%
|
-5.4%
|
10.2%
|
1.6%
|
18.1%
|
Finance and
Real Estate
|
$33.68
|
3.3%
|
4.8%
|
9.4%
|
6.0%
|
1.2%
|
18.3%
|
Professional
and Business
Services
|
$36.55
|
3.8%
|
4.6%
|
5.0%
|
7.9%
|
2.1%
|
24.6%
|
Education and
Health
Services
|
$27.21
|
2.3%
|
4.1%
|
4.6%
|
3.2%
|
2.6%
|
19.6%
|
Leisure and
Hospitality
|
$17.73
|
3.9%
|
5.5%
|
6.5%
|
-3.3%
|
2.4%
|
24.6%
|
Trade,
Transportation, and Utilities
|
$25.43
|
3.5%
|
5.1%
|
7.9%
|
3.9%
|
0.5%
|
21.3%
|
Workers in the Midwest outpaced other regions with 3.9 percent
wage growth although the hourly wage rate was the lowest at
$26.76. This region also experienced
the lowest employment growth at 0.9 percent. Job switchers fared
best in the West experiencing a wage growth of 6.6 percent. The
workers in the South had the lowest wage growth at 2.9 percent. By
firm size, workers at large firms had the highest wage growth rate
at 4.1 percent, with employment growth at 3.2 percent.
Table 2: Wage and Employment Growth by Region and Firm
Size – September 2019
Region
|
Wages
|
YOY Wage
Growth
|
Yearly
Growth
|
All
|
Holders
|
Entrants
|
Switchers
|
Employment
Growth
|
Switching
Rate
|
-USA-
|
$28.71
|
3.2%
|
4.8%
|
5.5%
|
5.1%
|
1.7%
|
20.8%
|
MIDWEST
|
$26.76
|
3.9%
|
4.6%
|
4.7%
|
4.2%
|
0.9%
|
19.7%
|
NORTHEAST
|
$32.21
|
3.1%
|
4.8%
|
6.1%
|
5.6%
|
1.5%
|
22.1%
|
SOUTH
|
$26.84
|
2.9%
|
4.6%
|
4.5%
|
4.4%
|
1.9%
|
20.7%
|
WEST
|
$30.83
|
3.2%
|
5.2%
|
7.2%
|
6.6%
|
2.4%
|
21.1%
|
Company
Size
|
|
|
|
|
|
|
|
-ALL-
|
$28.71
|
3.2%
|
4.8%
|
5.5%
|
5.1%
|
1.7%
|
20.8%
|
49 or less
|
$26.25
|
2.7%
|
4.1%
|
4.1%
|
3.5%
|
0.4%
|
14.9%
|
50 to 499
|
$28.78
|
2.5%
|
4.8%
|
5.2%
|
5.0%
|
0.5%
|
23.0%
|
500 to 999
|
$29.67
|
2.1%
|
5.1%
|
4.9%
|
5.1%
|
3.2%
|
21.4%
|
1000 or
more
|
$29.99
|
4.1%
|
5.0%
|
6.8%
|
5.5%
|
3.2%
|
23.5%
|
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 the third quarter of 2019, including data broken
down by region, firm size, industry, gender, and age, visit
http://workforcereport.adp.com/. The fourth quarter
2019 ADP Workforce Vitality Report will be released on
Wednesday, January 22, 2020.
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, LLC.
All other marks are the property of their respective
owners.
Copyright © 2019 ADP, LLC.
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