It’s been on the upswing for a couple years now, and the labor market continues to rise. In October, the ADP Workforce Vitality Report for Q3 2016 was released, showing a 3.65% increase from the same time period in 2015. The report monitors the same group of workers over time, offering a realistic depiction of wage growth among those who remain consistently employed.
Digging deeper, the report disclosed an overall pay increase of 4.3% for those who stayed in the same jobs and a 3.6% uptick for those who changed jobs during the year. Research revealed employees who stayed in the same job currently earn an average of $10 more per year than those who moved to a different one.
ADP Report Q3 Wage Breakdown
Q3 Wage Breakdown by Industry
Results of the report revealed salary patterns vary by industry. For example, job switchers in the goods sector saw an average increase in wages of 4.2% — compared with 5% for those who kept the same job — but those who changed jobs in the service sector earned higher salaries than their peers who stayed put. Overall, the information industry maintained its lead as the top sector for wage growth at 5.2% and highest overall wages, with workers earning an average of $41.37 per hour
- Construction: 7.2%
- Education/Healthcare: 4.9%
- Finance: 5.2%
- Information: 4.3%
- Leisure/Hospitality: 4.3%
- Manufacturing: 1.6%
- Professional Services: 4.6%
- Trade: 2.3%
- Resources and Mining: -17.6%
Earnings Breakdown by Region
Salary increases climbed higher in some parts of the country than others.
- West: 4.5%
- South: 4.2%
- Northeast: 2.7%
- Midwest: 2.3%
Earnings Data by Company Size
The number of people employed by a company appeared to impact employees’ increase in pay.
- 1-49 employees: 0.8%
- 50-499 employees: 4.5%
- 500-999 employees: 9.2%
- 1,000+ employees: 3.3%
Pay Increase by Age Group
Employees’ age played a role in their wage growth, with the youngest group of workers realizing the biggest pay increases.
- 16-24: 5.6%
- 25-34: 4.2%
- 35-54: 2.3%
- 55 and above: 5.5%
Rise in Earnings by Tenure
Somewhat correlated with the rise in earnings by employee age, tenure also served as a determining factor in salary growth.
- 0 to <3 Years: 5.6%
- 3 to <5 Years: 3.5%
- 5 to <10 Years: -0.2%
- 10 Years or More: 3.1%
Add more time back in your day by partnering with ECS. Our unique business model allows us to assist recruiters seeking low risk, instant access to the contingent staffing market on a national basis, and clients seeking cost conscious professional payrolling and consultant management services.