Manhattan Skyline at twilight, New York City

January 24, 2019 Comments Off on U.S. Wage Growth Remained Steady; Job Switching Continues to Slow Views: 818 National News, Top National

U.S. Wage Growth Remained Steady; Job Switching Continues to Slow

Order Reprints...

Wages for U.S. workers grew 3.4% over the last year, increasing the average wage level by $0.93 to $28.06 an hour annually as of December 2018. ADP Research Institute’s Workforce Vitality Report also revealed that 20.5% of U.S. employees successfully switched firms in the last year.

The growth was driven by strong wage gains in the education and health services industry, representing 19% of the workforce, (4.1% wage growth, $27.05 average hourly wage) and trade, representing 22% of the workforce, (4.4% wage growth, $24.56 average hourly wage).

ADP Research Institute’s Ahu Yildirmaz says, “As the labor market sits at full employment, we continue to see an overall slowdown in job switching across the majority of industries. One industry defying the market trend is finance, which has experienced a steady uptick in job switching. This acceleration is driven primarily by younger workers.”

The Northeast (3.7%, $31.57) and large businesses (4.9%, $29.04) also contributed to the growth. Employees in the resources and mining industry saw their wages decrease (-0.2%, $35.24), and businesses with less than 50 employees experienced the slowest wage growth (2%, $26.06).

Among industries, information continued to lead the way for both wage level and wage growth, which ADP says was expected. In addition to the top overall wage growth number of 5.1%, those who successfully switched positions to the information industry had wage growth of 10.6%. Employment in the information industry jumped by 2.9%.

Workers in the West and Northeast outpaced other regions with 3.7% wage growth, but the West had the highest employment growth at 2.7%. Job switchers also fared best in the West, experiencing a wage growth of 7.7%. Workers in the South had the lowest wage growth at 3%, and Midwest had the worst employment growth at 0.9%.

Read more at ADP Report

Connect With ADP’s Yildirmaz

Get CRE News in 150 words

For comments, questions or concerns, please contact Dennis Kaiser

Tags: ,

Comments are closed.