ADP Research Institute®

ADP Workforce Vitality Index
3rd Quarter 2016

ADP Workforce Vitality Report Shows Continued Growth in Wages

The ADP Workforce Vitality Index, which represents the total wages paid to the US private sector workforce, is 111.2 in the third quarter of 2016 (3Q2013=100, Not Seasonally Adjusted). The Index is driven by a number of metrics including job holders’ wages, job holders’ hours worked, job switchers’ wages, and total employment. The Index grew by 3.6% from the previous year. The trend of the Index by age shows the highest seasonal fluctations in income is experienced by the youngest age group. This reflects the mix of employment in this age group indicating higher proportion of part-time workers than other age groups.


ADP Workforce Vitality Index

111.2 3.6%
Change from 3Q 2015

Index Indicators (Yearly growth)

Total Employment Growth 1.9%

Job Turnover Ratio 25.8%

Change in the Hours Worked -0.1%

Wage Growth for Workers Who Stayed in Jobs 4.3%

Wage Growth for Workers Who Changed Jobs 3.6%


SIZE
Small
< 50 Employees
116.2
Midsized
50-499 Employees
107.7
Large
500-999 Employees
111.3
Enterprise
1000+ Employees
112.1

View Chart
REGIONS AND KEY STATES
Midwest
109.2
Illinois
106.9
Ohio
107.6
Michigan
111.6
Northeast
108.3
New Jersey
107.6
New York
109.0
Pennsylvania
104.9
South
112.1
Florida
115.6
Texas
112.4
West
114.2
California
114.1
Washington
117.4
View Chart
INDUSTRY
Construction
122.5
Manufacturing
106.4
Trade & Transportation
109.3
Finance
113.5

Professional Services
111.0
Education & Healthcare
114.4
Leisure & Hospitality
116.5
Information
109.5

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GENDER
Male
109.7
Female
113.8

AGE GROUP
16-24 Years Old
120.3
35-54 Years Old
107.1


25-34 Years Old
112.2
55+ Years Old
118.5


View Chart View Chart
FULL-TIME / PART-TIME
< 35 Hours
105.9
≥ 35 Hours
111.9

TENURE
1-3 Years
115.9
3-5 Years
129.6
5-10 Years
94.7
10+ Years
109.3




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Note: The ADP Workforce Vitality Index analyzes aggregated and anonymous employee-level data. The findings are based on actual data derived from about 340,000 U.S. companies and approximately 22 million private-sector U.S. workers. The privacy and security of the data is safeguarded by multiple layers of protection and no confidential client data is used in the ADP Workforce Vitality Index. The aggregated and anonymous data used in the report means that no information on individual ADP clients or their employees can be identified.



The Workforce Vitality Index, which represents the total wage bill of U.S. private-sector workers, grew by 3.6% year over year, up from 3.3% during the prior four quarters. The third quarter gain was driven by growth in wages and employment. Looking at wage growth among full-time workers, job switchers increased wages by an average of 5 percent when compared to job holders at 4.2 percent. Considering wages across industries, the goods sector proved to be less attractive for job switchers compared to the service sector. Across the board in the industries in the service sector, job switchers’ wage growth exceeded that of job holders. The information industry continues to lead the way in terms of wage growth at 5.2%. This industry is made up of many highly paid, well-educated workers who are valued and in short supply. Among full-time job switchers, workers switching from leisure/hospitality jobs gained the most when making a move. This is not surprising, as there are more low paying jobs in these industries, and even a little increase in wages would translate to a considerable growth because of their lower wage base. To summarize wage trends across all reported areas, the best wage growth is in the West, in the leisure & hospitality industry, among women, younger workers, those with little job tenure and those employed at large-sized companies.

“Employees in the information industry are experiencing some of the highest growth in wages, while overall employment growth in this area is relatively slow,” said Ahu Yildirmaz, vice president and head of the ADP Research Institute®. “I believe this is fueled by a war for talent among information industry employers who are increasing wages to attract and retain top talent.”





ADP Workforce Vitality Report Shows Continued Growth in Wages


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.

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For media inquiries about the ADP Workforce Vitality Index, please call (973) 868-1000 or email Michael Schneider.