Payroll
Job Switchers See 5.8% Wage Growth
Employment growth year-over-year increased 3.5 percent, although construction, manufacturing, resources and mining, as well as information sectors saw employment shrink. Leisure and hospitality saw the biggest gain with 13 percent employment growth.
Jul. 28, 2021
U.S. wage growth among job switchers increased 5.8 percent since June 2020 according to the latest ADP Research Institute Workforce Vitality Report (WVR) released on July 28, 2021. Overall wage growth decelerated to 2.3 percent in the second quarter, down from a 6 percent average in the first quarter 2021. Employment growth took a positive turn in the second quarter and increased by 3.5 percent in June 2021.
“ADP data shows a rise in U.S. job switchers across industries along with increased wage growth for switchers,” said Nela Richardson, chief economist, ADP. “The increase in wage growth for job switchers could be driven by employers struggling to find talent and are willing to offer competitive compensation to secure employees. Leisure and hospitality, which experienced the greatest job loss due to the pandemic, is a notable exception to this overall trend. While leisure and hospitality led employment gains in the first half of 2021, it is the only industry where both job holders and job switchers are earning lower wages on average compared to a year earlier.”
Employment growth year-over-year increased 3.5 percent, although construction, manufacturing, resources and mining, as well as information sectors saw employment shrink. Leisure and hospitality saw the biggest gain with 13 percent employment growth. This sector also experienced the smallest wage growth, likely due to the increase in low wage workers entering the sector. Specifically, job holders and job switchers both reported a decline in wage growth at -1.39 percent and -1.27 percent. See wage and employment growth figures by industry, region and employee demographics.
ADP July Workforce Report chart