All New Workforce Vitality Report With Deeper Labor Market Insights
April 24, 2018
The updated Workforce Vitality Report (WVR) from the ADP Research Institute® has just been released and includes all of the same segment-specific data, but also include updates to provide improved, more granular insights.
Enhancements to the report include the use of monthly data, rather than quarterly numbers, to sharpen labor market picture, the addition of information around new entrants to the workforce and deeper insights into seasonality and employment by firm size.
Top Insights from this Quarter
Wages for U.S. workers grew 2.9 percent over the last year, increasing the average wage level by $0.57 to $27.36 an hour. The growth, down from 3.1 percent annual growth as of December 2017, was driven by strong wage gains for workers in the information industry (5.6 percent wage growth, $41.38 average hourly wage), in the West (3.5 percent, $29.27) and from small businesses (3.3 percent, $25.47). Employees in the resources and mining industry (1.7 percent, $34.96) and in the South (2.5 percent, $25.61) had the slowest wage growth.
Wage and Employment Growth by Industry
Among industries, information continued to lead the way for both wage level and wage growth. In addition to the top overall wage growth number of 5.6 percent, new entrants into the information field had 7.6 percent wage growth. Those who successfully switched positions within the information industry had wage growth of 8.3 percent. Employment in the information industry, however, grew just 1.2 percent.
The resources and mining industry had the lowest overall wage growth, just 1.7 percent. New entrants into the field showed negative wage growth, at -3.5 percent. Employment in the resources and mining industry grew 4.2 percent.
Wage and Employment Growth by Region and Firm Size
Workers in the West continued to outpace other regions with 3.5 percent wage growth. Employees who switched firms in the West experienced 8.2 percent wage growth. Workers in the South had the lowest wage growth at 2.5 percent. By firm size, workers at small firms had the highest wage growth rate at 3.3 percent, though employment growth for small firms was just 0.8 percent.
Switchers’ Movement by Industry
The WVR also revealed that more than 21.3 percent of U.S. employees successfully switched firms in the last year. The highest level of switching was from the information industry to the professional and business services industry. Of all the information workers who switched firms, 30 percent switched to the professional and business services industry.
The second quarter 2018 ADP Workforce Vitality Report will be released on Wednesday, July 25, 2018.
About the Report: The ADP Workforce Vitality Index is a comprehensive, quarterly measure of U.S. workforce dynamics that looks at key labor market indicators, such as employment growth, job turnover, wage growth and hours worked. This report yields deeper insights into workforce dynamics and trends than previously available.
For media inquiries about the ADP Workforce Vitality Report, please call 201-400-4583 or email Allyce Hackmann.