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

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%.

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About Dennis Kaiser

Dennis Kaiser is Vice President of Public Relations and Communications for Connect Creative. Dennis is a communications leader with more than 40 years of experience including as a journalist and in corporate and agency marketing communications roles. He is responsible for Connect Creative’s agency client services and is involved in a range of initiatives ranging from public relations and content strategy, communications and message development, copywriting, media relations, social media and content marketing services. Prior to joining Connect Media in 2015, his most recent corporate communications roles involved leading a regional public relations effort across Southern California for CBRE, playing a key marketing role on JLL’s national retail team, and directing the global public relations effort at ValleyCrest (BrightView), the nation’s largest commercial landscape services company. He has worked on marketing communications assignments for such CRE companies as Blackstone/Equity Office, Carlyle, Caruso, Disney Resorts, GE Capital, Irvine Company, Hines, Howard Hughes Corp., Jeffries, Lennar, MGM, Marcus & Millichap, Prologis, Raleigh Studios, Simon, Starwood, Trammell Crow Company, Transamerica, UBS and Wynn Resorts. Dennis has also worked on communications and launch strategies for a number of consumer electronic, media and tech brands including SlingMedia, Channel Master, Deluxe Media Entertainment, BeIn Sports, EchoStar and Sprint. Dennis’s agency background included firms such as Off Madison Ave., Idea Hall and Macy + Associates. He has earned an outstanding reputation with organization leaders as a trusted advisor, strategic program implementer, consensus builder and exceptional collaborator. Dennis has developed and managed national communications programs for Fortune 500 companies to start-ups, both public and private. He’s successfully worked with journalists across the globe representing clients involved in major-breaking news stories, product launches, media tours, and company news announcements. Dennis has been involved in a host of charitable and community organizations including the American Cancer Society, Easter Seals, Boy Scouts, Chrysalis Foundation, Freedom For Life, HOLA, L.A.’s BEST, Reach Out and Read, Super Bowl Host Committee, and the Thunderbirds Charities.

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

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

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