ROSELAND, N.J., Jan. 22, 2020 /PRNewswire/ -- Wages for U.S.
workers grew 3.2 percent over the last year, increasing the average
wage level by $0.88 to $28.93 an hour, according to the ADP Research
Institute® Workforce Vitality
Report (WVR) released today. The wage growth of 3.2 percent
corresponds to the Bureau of Labor and Statistics (BLS) numbers of
2.9 percent which was published this month.
"The final quarter of 2019 was marked with a slight deceleration
in job growth and wage growth was unchanged," said Ahu Yildirmaz,
co-head of the ADP Research Institute. "Wage growth for holders and
entrants decelerated, whereas switchers experienced
acceleration."
Earlier this year, job holders, job switchers, and entrants saw
wage growth of 5 percent or better; however, job holders are now
seeing only 4.6 percent growth, entrants stand at 4.9 percent, and
switchers came in at 5 percent.
Wage growth across industries had been tightly clustered between
3.5 percent and 4.5 percent; however, the differences are becoming
clearer. Resources and mining continues to be the weakest
performer, with wages falling year-over-year. Education and health
services also experienced low wage growth at 1.8 percent, less than
half the rate from one year ago. However, job holder wage growth in
education and health services remains above 4 percent and
employment growth is among the strongest of any industry,
indicating that overall wage growth is likely being weighed down by
changes in industry worker composition.
Table 1: Wage and Employment Growth by Industry –
December 2019
Industry
|
Wages
|
YOY Wage
Growth
|
Yearly
Growth
|
All
|
Holders
|
Entrants
|
Switchers
|
Employment
Growth
|
Switching
Rate
|
-ALL-
|
$28.93
|
3.2%
|
4.6%
|
4.9%
|
5.0%
|
1.6%
|
20.5%
|
Goods
|
|
|
|
|
|
|
|
Construction
|
$29.45
|
4.3%
|
5.0%
|
2.1%
|
7.9%
|
4.3%
|
15.9%
|
Manufacturing
|
$30.33
|
4.0%
|
4.9%
|
3.8%
|
5.2%
|
0.2%
|
17.9%
|
Resources and
Mining
|
$34.82
|
-0.9%
|
4.1%
|
-2.3%
|
4.4%
|
-2.4%
|
10.0%
|
Services
|
|
|
|
|
|
|
|
Information
|
$41.97
|
2.2%
|
5.2%
|
-1.7%
|
11.0%
|
0.8%
|
18.9%
|
Finance and Real
Estate
|
$34.36
|
4.3%
|
4.7%
|
2.6%
|
6.0%
|
1.5%
|
18.7%
|
Professional and
Business Services
|
$36.70
|
3.3%
|
4.5%
|
3.1%
|
7.7%
|
2.0%
|
23.8%
|
Education and Health
Services
|
$27.54
|
1.8%
|
4.2%
|
4.8%
|
3.1%
|
2.5%
|
19.4%
|
Leisure and
Hospitality
|
$18.11
|
5.5%
|
5.5%
|
2.8%
|
-2.6%
|
2.2%
|
24.4%
|
Trade,
Transportation, and Utilities
|
$25.40
|
3.5%
|
4.6%
|
8.1%
|
3.4%
|
0.4%
|
20.9%
|
Workers in the Midwest outpaced other regions with 3.9 percent
wage growth, although the hourly wage rate was the lowest at
$27. The Midwest also experienced the
lowest employment growth at 0.8 percent. Job switchers fared best
in the West experiencing a wage growth of 6.7 percent, while job
entrants in the Northeast fared the best with wage growth of 6.2
percent. By firm size, workers at large firms had the highest wage
growth rate at 3.4 percent, with employment growth at 3
percent.
Table 2: Wage and Employment Growth by Region and Firm
Size – December 2019
Region
|
Wages
|
YOY Wage
Growth
|
Yearly
Growth
|
All
|
Holders
|
Entrants
|
Switchers
|
Employment
Growth
|
Switching
Rate
|
-USA-
|
$28.93
|
3.2%
|
4.6%
|
4.9%
|
5.0%
|
1.6%
|
20.5%
|
MIDWEST
|
$27.00
|
3.9%
|
4.5%
|
5.3%
|
4.7%
|
0.8%
|
19.4%
|
NORTHEAST
|
$32.43
|
2.7%
|
4.6%
|
6.2%
|
5.4%
|
1.3%
|
21.8%
|
SOUTH
|
$27.00
|
2.9%
|
4.4%
|
4.5%
|
4.0%
|
1.8%
|
20.4%
|
WEST
|
$31.18
|
3.2%
|
5.1%
|
4.2%
|
6.7%
|
2.3%
|
20.8%
|
Company
Size
|
|
|
|
|
|
|
|
-ALL-
|
$28.93
|
3.2%
|
4.6%
|
4.9%
|
5.0%
|
1.6%
|
20.5%
|
49 or less
|
$26.74
|
2.7%
|
3.9%
|
4.7%
|
3.2%
|
0.3%
|
14.6%
|
50 to 499
|
$29.07
|
3.1%
|
4.7%
|
2.5%
|
5.5%
|
0.3%
|
22.7%
|
500 to 999
|
$30.04
|
2.9%
|
4.9%
|
5.0%
|
4.8%
|
3.0%
|
21.1%
|
1000 or
more
|
$30.00
|
3.4%
|
4.9%
|
6.5%
|
5.2%
|
3.0%
|
23.1%
|
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 fourth quarter of 2019, including data broken
down by region, firm size, industry, gender, and age visit
http://workforcereport.adp.com/. The first quarter 2020
ADP Workforce Vitality Report will be released on
Wednesday, April 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 © 2020 ADP, LLC.
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