ADP® Workforce Vitality Report Q3 2016 Shows Continued Growth in Wages
When this report looks deeper into segments of the labor force, overall job holders' wages grew by 4.3 percent and job switchers' grew slightly less by 3.6 percent year over year for the third quarter. Wage growth rate slowed slightly for job switchers, whereas job holders' growth rate remained steady. On average, job holders' hourly wage levels are
TABLE 1: Wages
||Wage Level||Wage Growth
Looking at wage growth among full-time workers, job switchers increased wages by an average of 5 percent when compared to job holders at 4.2 percent. Considering wages across industries, the goods sector proved to be less attractive for job switchers compared to the service sector. Across the board in the industries in the service sector, job switchers' wage growth exceeded that of job holders. The information industry continues to lead the way in terms of wage growth at 5.2% and is the highest paid overall at
"Employees in the information industry are experiencing some of the highest growth in wages, while overall employment growth in this area is relatively slow," said Ahu Yildirmaz, vice president and head of the ADP Research Institute®. "I believe this is fueled by a war for talent among information industry employers who are increasing wages to attract and retain top talent."
Employment growth was strongest in construction, whereas manufacturing, and resources and mining industries suffered job losses. Among the service sector, information was the slowest growing industry.
TABLE 2: Q3 2016 Wages and Employment by Industry
|Wage Growth (yoy)
|Employment Growth (yoy)|
|Resources and Mining||-0.1%||-9.6%||-18.1%|
|Finance and Real Estate||4.6%||5.0%||2.2%|
|Professional and Business Services||4.6%||6.4%||2.8%|
|Leisure and Hospitality||5.2%||7.5%||2.8%|
|Education and Health Services||3.8%||6.6%||2.6%|
|Trade, Transportation, and Utilities||4.1%||4.4%||1.6%|
Workforce dynamics vary considerably across all regions as well. The region that remains the strongest for wage level and growth is the West, which despite exposure to commodities and the high dollar, benefits from strong demographics, booming tech, tourism and international trade, and a recovering housing market. While the South shows average employment growth, it is the lowest in terms of wage growth among all reported regions.
TABLE 3: Q3 2016 Wages and Employment by Region
|Wage Growth (yoy)
To summarize wage trends across all reported areas, the best wage growth is in the West, in the leisure & hospitality industry, among women, younger workers, those with little job tenure and those employed at large-sized companies.
TABLE 4: Who fared the Best by Third Quarter: Year over year Wage Growth for Job Holders
|Age||24 and younger||8.7%|
|Tenure||Less than 3 years||5.4%|
|Industry||Leisure & Hospitality||5.3%|
The 4th Quarter 2016 ADP Workforce Vitality Report will be released on
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