ROSELAND, N.J., Oct. 27, 2021 /PRNewswire/ -- Third quarter
U.S. wage growth increased 3.3 percent, in line with growth in the
months leading up to the pandemic; however, wage growth for job
switchers increased 6.6 percent since September 2020 according to the ADP Research
Institute® Workforce Vitality
Report (WVR) released today. Employment growth increased by
4.1 percent in September 2021.
"According to ADP data, U.S. wage growth has begun to align with
pre-pandemic levels, reporting 3.3 percent increase for all
employees. Though overall wage growth is normalizing back to
pre-pandemic levels, the uptick in hiring demand is still boosting
pay for job switchers, whose wages grew 6.6 percent from last
year," said Nela Richardson, chief
economist, ADP. "As the economy continues to regain lost footing
due to the pandemic, we are seeing pockets of unevenness in wage
growth across the workforce as employers continue to offer
competitive compensation, as well as in sectors such as leisure and
hospitality which reported the greatest employment gains. Further,
females switched jobs at a higher rate than men and outpaced their
male counterparts in wage growth and job switching wage growth,
though from a lower wage level."
Employment growth year-over-year increased 4.1 percent. Wage
growth was positive across almost all sectors with trade,
professional services and construction leading the way; information
reported no net change in employment. Leisure and hospitality
experienced the biggest gain with 15 percent employment growth, as
the sector slowly recovers from the hefty layoffs due to the
pandemic.
Table 1: Wage and Employment Growth by Industry –
September 2021
Industry
|
Wages
|
YOY Wage
Growth
|
Yearly
Growth
|
All
|
Holders
|
Entrants
|
Switchers
|
Employment
Growth
|
Switching
Rate
|
-ALL-
|
$31.22
|
3.3%
|
4.8%
|
2.5%
|
6.6%
|
4.1%
|
21.5%
|
Goods
|
|
|
|
|
|
|
|
Construction
|
$31.24
|
5.0%
|
5.2%
|
4.7%
|
6.7%
|
2.9%
|
16.4%
|
Manufacturing
|
$32.44
|
3.2%
|
4.9%
|
7.1%
|
7.5%
|
1.8%
|
17.9%
|
Resources and
Mining
|
$38.81
|
-3.5%
|
4.8%
|
0.0%
|
7.3%
|
7.6%
|
4.7%
|
Services
|
|
|
|
|
|
|
|
Information
|
$46.36
|
4.4%
|
5.3%
|
3.6%
|
10.5%
|
0.0%
|
20.7%
|
Finance and Real
Estate
|
$36.31
|
2.7%
|
4.8%
|
-0.3%
|
8.8%
|
1.0%
|
18.4%
|
Professional and
Business Services
|
$39.75
|
5.7%
|
5.8%
|
7.2%
|
10.6%
|
3.1%
|
24.8%
|
Education and Health
Services
|
$29.47
|
0.6%
|
3.0%
|
2.6%
|
4.4%
|
3.6%
|
19.4%
|
Leisure and
Hospitality
|
$19.20
|
1.0%
|
6.8%
|
2.7%
|
0.4%
|
15.0%
|
27.4%
|
Trade,
Transportation, and Utilities
|
$27.68
|
6.7%
|
5.5%
|
-1.4%
|
2.9%
|
2.4%
|
23.8%
|
Across the U.S., most regions experienced similar wage growth
near the national average of 3.3 percent, with the exception of the
Mid-west which came in below average at 1.7 percent. Job switchers
saw improved wage growth at 6.6 percent from the previous quarter
as firms compete for workers. By firm size, employees from mid to
large size firms saw higher wage growth than those employed at
small businesses.
Table 2: Wage and Employment Growth by Region and Firm
Size – September 2021
Region
|
Wages
|
YOY Wage
Growth
|
Yearly
Growth
|
All
|
Holders
|
Entrants
|
Switchers
|
Employment
Growth
|
Switching
Rate
|
-USA-
|
$31.22
|
3.3%
|
4.8%
|
2.5%
|
6.6%
|
4.1%
|
21.5%
|
MIDWEST
|
$28.93
|
1.7%
|
3.9%
|
3.8%
|
4.3%
|
2.4%
|
20.3%
|
NORTHEAST
|
$35.23
|
3.2%
|
4.9%
|
2.5%
|
8.8%
|
4.7%
|
22.0%
|
SOUTH
|
$28.98
|
3.8%
|
4.9%
|
1.5%
|
5.9%
|
3.3%
|
21.8%
|
WEST
|
$33.86
|
3.7%
|
5.2%
|
3.2%
|
8.0%
|
6.4%
|
21.7%
|
Company
Size
|
|
|
|
|
|
|
|
-ALL-
|
$31.22
|
3.3%
|
4.8%
|
2.5%
|
6.6%
|
4.1%
|
21.5%
|
49 or less
|
$28.05
|
2.4%
|
4.6%
|
3.5%
|
5.1%
|
3.8%
|
17.1%
|
50 to 499
|
$31.34
|
3.8%
|
5.2%
|
4.6%
|
7.0%
|
2.9%
|
22.9%
|
500 to 999
|
$32.11
|
3.8%
|
5.1%
|
4.1%
|
4.3%
|
4.8%
|
21.3%
|
1000 or
more
|
$32.83
|
3.3%
|
4.5%
|
0.9%
|
7.5%
|
4.8%
|
23.6%
|
Job switching increased from the previous quarter from 5.8
percent to 6.6 percent. Among the genders, females switched at a
higher rate than males at 22.4 percent compared to 20.6 percent,
respectively and also saw slightly higher wage growth. Although
female job switchers are realizing larger gains than their male
counterparts, some of this gap is due to the differing industry
composition of jobs recovered for men and women.
Table 3: Wage and Switching Rate by Industry and Gender –
September 2021
Industry
|
Gender
|
Share
|
Switching
Rate
|
Switching
Wage
|
Switchers'
Wage
Growth
|
ALL
|
Female
|
49%
|
22.4%
|
$28.17
|
7.0%
|
Male
|
51%
|
20.6%
|
$33.46
|
6.4%
|
Construction
|
Female
|
21%
|
16.8%
|
$25.60
|
5.6%
|
Male
|
79%
|
16.3%
|
$28.70
|
7.0%
|
Manufacturing
|
Female
|
35%
|
19.6%
|
$37.35
|
8.6%
|
Male
|
65%
|
17.1%
|
$35.37
|
7.0%
|
Finance & Real
Estate
|
Female
|
55%
|
18.3%
|
$31.26
|
8.1%
|
Male
|
45%
|
18.5%
|
$45.36
|
9.8%
|
Information
|
Female
|
40%
|
21.2%
|
$47.16
|
10.8%
|
Male
|
60%
|
20.4%
|
$59.70
|
10.7%
|
Professional &
Business Serv
|
Female
|
49%
|
26.5%
|
$38.18
|
10.7%
|
Male
|
51%
|
23.4%
|
$45.84
|
10.9%
|
Education &
Health
|
Female
|
76%
|
20.1%
|
$24.58
|
3.9%
|
Male
|
24%
|
17.4%
|
$31.53
|
6.3%
|
Leisure &
Hospitality
|
Female
|
52%
|
27.6%
|
$16.31
|
-1.5%
|
Male
|
48%
|
27.2%
|
$16.80
|
1.9%
|
Trade,
Transportation & Utilities
|
Female
|
44%
|
25.7%
|
$24.47
|
6.4%
|
Male
|
56%
|
22.5%
|
$26.96
|
1.3%
|
Across all age groups, employment growth was the most
significant for employees age 24 or less and workers over the age
of 55, possibly reflecting those rejoining the workforce
post-pandemic. Female wage growth has surged to 4.5 percent, in
part because they are coming from a lower wage, while the increase
for men has been much more tepid, only at 2.4 percent in
September 2021.
Table 3: Wages by Gender and Age – September 2021
|
|
|
24 or
less
|
25 to
34
|
35 to
54
|
55 or
more
|
-ALL-
|
Employment
Growth
|
-ALL-
|
7.7%
|
2.0%
|
3.1%
|
6.0%
|
4.1%
|
Female
|
9.3%
|
1.3%
|
2.8%
|
5.8%
|
4.0%
|
Male
|
6.0%
|
2.6%
|
3.4%
|
6.2%
|
4.1%
|
Wage
Growth
|
-ALL-
|
2.0%
|
3.8%
|
3.5%
|
2.4%
|
3.3%
|
Female
|
5.0%
|
5.7%
|
4.5%
|
3.0%
|
4.5%
|
Male
|
-0.5%
|
2.3%
|
2.8%
|
2.0%
|
2.4%
|
Wage Level
|
-ALL-
|
$16.53
|
$26.84
|
$35.32
|
$35.30
|
$31.22
|
Female
|
$15.67
|
$25.58
|
$31.32
|
$29.39
|
$27.66
|
Male
|
$17.35
|
$27.91
|
$38.52
|
$39.87
|
$34.13
|
Males Earning
More
|
11%
|
9%
|
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 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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