Wages of job hoppers are up in response to tight labor market
- U.S. workers' wages grew on average 3% over last year, according to the latest version of the ADP Research Institute Workforce Vitality Report. The increase amounts to $0.80 per hour, raising the average hourly wage to $27.46, driven by strong wage gains in June for employees in the professional and business services (representing about 17% of the current workforce).
- Wage growth for newcomers to the workforce dipped by 0.1%, while wages increased by 4.5% for workers age 55 and older, the report shows. Job switchers age 55 and older are also seeing higher wages, up 6.3%, or 1.5% higher than workers ages 35 to 54. ADP says these numbers indicate that employers are widening their talent searches and that some people who had been out of the labor force have returned.
- Among industries, the information industry came out on top in earnings and wage growth, but growth was high for job switchers in professional and business services and construction (9.1% and 7.1%, respectively), as well.
Job switchers made notable gains in wage growth in the latest ADP report over the Workforce Vitality Report for Q4 2017. Last year, job switchers had lower wage growth than those who stayed on board, at least in the short term.
People leave jobs for many reasons, but money remains a top motivator, according to recent studies. Job hoppers are likely leaving for higher pay, a 2018 OfficeTeam survey revealed. Employers have been slow to increase wages, but the most recent indicators show that the tight labor market may be finally forcing such action.
Money doesn't tell the whole story, however. While low pay remains a key cause of dissatisfaction, job security and development opportunities also affect whether an employee will stick around for the long haul, especially among the younger set, a study from Visier Insights showed, meaning employers are facing increased pressure to create an engaging work environment, in addition to offering competitive pay.