Some Workers Actually See Wage Growth

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We've been hearing about Americans' anemic wage growth since the end of the recession, but it turns out some workers now are getting raises.

We’ve been hearing about Americans’ anemic wage growth since the end of the recession, but it turns out some workers now are getting raises.

The latest quarterly Workforce Vitality Index report from ADP Research Institute — the research arm of payroll services company ADP — shows what is described as “discernible acceleration in wage growth.”

The index tracks the same set of full-time workers, which the institute says lends “a truer picture of wage growth among those who are consistently employed.”

The institute divides this set of full-time workers into two groups:

  • Job holders (workers who stay in the same job)
  • Job switchers (workers who change jobs)

Overall, full-time job holders’ annual wage growth has accelerated by 0.5 percent, increasing from 4.1 percent in the prior quarter to 4.6 percent in the first quarter of this year.

Within nine industries examined, job holders’ wage growth accelerated in all but one industry: natural resources and mining.

Ahu Yildirmaz, head of the ADP Research Institute, explains in a company blog post:

This may be a signal that continued employment growth is leading to a smaller pool of available talent, in turn motivating employers to increase wages to retain experienced workers. This wage growth was evident in almost all industries and in all age groups among full-time workers. Employers appear to be reacting to a tightening labor market by boosting wages to retain talent.

Full-time job switchers’ annual wage growth has decelerated slightly, by 0.2 percent. It remains high, though, having dropped from 6.2 percent in the prior quarter to 6 percent in the first quarter of this year.

Are you surprised to learn of this wage growth among full-time job hoppers and job switchers in 2016? Share your thoughts below or on our Facebook page.

Stacy Johnson

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