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Index Indicators (Yearly growth)
Total Employment Growth 1.8%
Job Turnover Ratio 26.5%
Change in the Hours Worked -0.6%
Wage Growth for Workers Who Stayed in Jobs 4.3%
Wage Growth for Workers Who Changed Jobs 3.6%
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Despite strong employment growth nationwide, wage growth in the South still lags behind wage growth for workers in the West, according to the ADP Research Institute® Workforce Vitality Report (WVR).
As the internet continues to fundamentally transform the economy, wage growth in the information industry endures.
Two factors over the past half decade have influenced the future of the job market more than any others: the implementation of the Affordable Care Act (ACA) and the rise of millennials in the work force.
Minimum wage increases have been a hot topic of late. While the federal minimum wage sits at $7.25/hour, many states and municipalities are taking it upon themselves to ensure that the people who make the least start making more.
Successful HR leaders recognize that, while a competitive wage is a necessary component of a satisfied employee's compensation package, wages alone are generally not sufficient to prevent attrition.
Job growth for men has slowed, according to the ADP Research Institute's Workforce Vitality Report. The report indicates that in Q1 of 2016 women experienced a 2.7 percent growth in overall employment while job growth among men increased only 0.9 percent.
Retaining top-tier employees should be a major concern for HR leadership as organizations face increasing turnover rates and outside competition for their best talent.
When it came to yearly wage growth, the difference between men and women was more pronounced for people who changed jobs as opposed to those that remained in the same jobs.
Employment and pay may be on the rise on the average, but the picture gets complicated when examined by compensation levels.
The manufacturing sector saw, at 3.4 percent, stronger year-over-year wage growth than the average 2.7 percent across all industries.
Improving economic conditions have increased consumer spending and created demand for more employees, resulting in increased wages and employee turnover.
Turnover rate continues to rise as employees are emboldened to look for new opportunities in an improving economy.
Leisure and hospitality businesses have made a strong comeback in recent months creating hiring challenges for small businesses.
See how the ADP Workforce Vitality Report provides a timely, multi-dimensional view of what's driving the trends in the U.S. workforce.
Better understand your workforce dynamics, and align your workforce and business strategies
For information on how to read the ADP Workforce Vitality Index click here
For information on the methodology behind the ADP Workforce Vitality Index click here
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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.
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For media inquiries about the ADP Workforce Vitality Index, please call (973) 868-1000 or email Michael Schneider.
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