- Employment Growth Increased to 5.0 Percent From Third Quarter 2021
Fourth quarter US wage growth increased 4.4 percent. Wage growth for both job holders and job switchers hit all-time highs of 5.9 percent and 8.0 percent respectively, according to the ADP Research Institute Workforce Vitality Report (WVR) released today. In fact, wage growth for Generation Z (24 years old and younger) job holders saw the largest wage gains in December 2021 at 13.1 percent. Employment growth increased by 5.0 percent in December 2021.
“ADP data showed U.S. wage growth increased 4.4 percent on average for all workers in December 2021, with job switchers and younger job holders who saw the largest wage growth,” said Nela Richardson, chief economist, ADP. “Leisure and hospitality, which experienced the greatest job loss due to the pandemic, was a notable exception to this overall trend. While leisure and hospitality led employment gains in the first half of 2021, it is the only industry where job switchers’ wages were basically flat on average in December 2021 compared to previous year.”
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Employment growth year-over-year increased 5.0 percent, with all sectors experiencing employment growth. While leisure and hospitality led the way with a 17.7 percent increase, overall employment levels for the sector remain below their high-water mark prior to the pandemic. However, wage growth for job holders and job switchers was the strongest in industries including professional business services (12.2 percent) and information technology (12.2 percent).
Table 1: Wage and Employment Growth by Industry – December 2021
|
Industry |
YOY Wage Growth |
Yearly Growth |
|||||
|
All |
All |
Holders |
Entrants |
Switchers |
Employment Growth |
Switching Rate |
|
|
-ALL- |
$31.53 |
4.4% |
5.9% |
3.0% |
8.0% |
5.0% |
22.0% |
|
Construction |
$31.56 |
4.1% |
6.1% |
4.7% |
7.3% |
4.5% |
16.0% |
|
Education and Health Services |
$29.67 |
3.6% |
5.5% |
3.6% |
5.0% |
3.6% |
20.5% |
|
Finance and Real Estate |
$36.90 |
3.8% |
5.4% |
0.2% |
9.9% |
1.4% |
17.1% |
|
Information |
$46.92 |
6.5% |
6.0% |
6.0% |
12.2% |
1.8% |
18.3% |
|
Leisure and Hospitality |
$19.38 |
2.1% |
6.7% |
4.5% |
0.4% |
17.7% |
29.4% |
|
Manufacturing |
$32.71 |
3.9% |
6.0% |
6.8% |
8.7% |
3.2% |
18.4% |
|
Other Services |
$26.24 |
2.2% |
5.1% |
-0.7% |
5.7% |
5.4% |
15.5% |
|
Professional and Business Services |
$40.56 |
6.2% |
6.4% |
7.5% |
12.2% |
3.9% |
25.4% |
|
Resources and Mining |
$36.11 |
-10.3% |
5.2% |
0.0% |
8.8% |
9.5% |
5.1% |
|
Trade, Transportation, and Utilities |
$27.88 |
8.4% |
6.8% |
-1.6% |
5.7% |
3.4% |
24.1% |
Across the U.S., all regions experienced wage growth over 3.0 percent. While job switchers saw record-setting wage growth, job switchers in the West and Northeast received the biggest gain at 9.2 percent and 9.0 percent. By firm size, midsized companies with 500 to 999 employees increased wages the fastest, up 9.1 percent in December 2021 from one year prior.
Table 2: Wage and Employment Growth by Region and Firm Size – December 2021
|
Region |
YOY Wage Growth |
Yearly Growth |
|||||
|
Wages |
All |
Holders |
Entrants |
Switchers |
Employment Growth |
Switching Rate |
|
|
-USA- |
$31.53 |
4.4% |
5.9% |
3.0% |
8.0% |
5.0% |
22.0% |
|
MIDWEST |
$29.23 |
4.1% |
5.9% |
3.7% |
7.2% |
3.7% |
20.9% |
|
NORTHEAST |
$35.55 |
3.8% |
5.5% |
2.9% |
9.0% |
5.6% |
22.6% |
|
SOUTH |
$29.21 |
4.6% |
5.9% |
1.7% |
7.1% |
4.5% |
22.4% |
|
WEST |
$34.31 |
4.7% |
6.1% |
4.0% |
9.2% |
6.7% |
22.1% |
|
Company Size |
|||||||
|
-ALL- |
$31.53 |
4.4% |
5.9% |
3.0% |
8.0% |
5.0% |
22.0% |
|
49 or less |
$28.43 |
2.5% |
5.1% |
3.8% |
6.0% |
4.8% |
17.8% |
|
50 to 499 |
$31.67 |
4.7% |
6.1% |
5.3% |
8.1% |
3.7% |
23.5% |
|
500 to 999 |
$32.68 |
5.9% |
6.3% |
5.7% |
9.1% |
5.8% |
21.8% |
|
1000 or more |
$33.07 |
4.9% |
6.1% |
1.1% |
8.3% |
5.8% |
24.0% |
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Wage gains for job switchers saw tremendous increases overall, with double digit increases for job switchers in industries including finance, information technology and professional business services with an average wage of $18.04 for females and $19.66 for males.
|
Industry |
Gender |
Share |
Switching |
Switching |
Switchers’ |
|
ALL |
Female |
48% |
23.00% |
$29.08 |
8.07% |
|
Male |
52% |
21.15% |
$34.41 |
7.88% |
|
|
Construction |
Female |
21% |
16.56% |
$28.93 |
5.98% |
|
Male |
79% |
15.88% |
$31.32 |
7.58% |
|
|
Manufacturing |
Female |
31% |
20.03% |
$38.13 |
9.89% |
|
Male |
69% |
17.62% |
$37.47 |
8.13% |
|
|
Finance & Real Estate |
Female |
54% |
16.90% |
$31.83 |
9.74% |
|
Male |
46% |
17.24% |
$43.08 |
10.30% |
|
|
Information |
Female |
38% |
18.90% |
$50.16 |
12.70% |
|
Male |
62% |
17.97% |
$55.84 |
12.15% |
|
|
Professional & Business Serv |
Female |
46% |
26.99% |
$39.15 |
12.58% |
|
Male |
54% |
24.17% |
$49.32 |
12.13% |
|
|
Education & Health |
Female |
75% |
21.08% |
$24.76 |
4.57% |
|
Male |
25% |
18.56% |
$31.86 |
6.13% |
|
|
Leisure & Hospitality |
Female |
49% |
29.40% |
$18.04 |
-1.38% |
|
Male |
51% |
29.44% |
$19.66 |
1.80% |
|
|
Trade, Transportation & Utilities |
Female |
39% |
26.07% |
$24.66 |
7.37% |
|
Male |
61% |
22.83% |
$27.64 |
4.77% |
Across all age groups, wage growth was strongest among workers 24 years old and younger at 6.8 percent in December 2021. In contrast workers over 55, saw wage gains at just 2.7 percent. Wage gains for females outpaced male wages in December 2021, albeit from a lower base.
Table 3: Wages by Gender and Age – December 2021
|
24 or less |
25 to 34 |
35 to 54 |
55 or more |
-ALL- |
||
|
Wage Growth |
-ALL- |
6.8% |
5.9% |
4.1% |
2.7% |
4.4% |
|
Female |
7.1% |
7.4% |
5.7% |
3.3% |
5.7% |
|
|
Male |
6.6% |
4.5% |
3.0% |
2.3% |
3.4% |
|
|
Job Holder Wage |
-ALL- |
13.1% |
9.2% |
5.6% |
3.5% |
5.9% |
|
Job Switcher Wage |
-ALL- |
7.3% |
11.6% |
9.4% |
4.8% |
8.0% |
|
Wage Level |
-ALL- |
$16.89 |
$27.19 |
$35.61 |
$35.69 |
$31.53 |
|
Female |
$16.05 |
$26.03 |
$31.65 |
$29.68 |
$28.00 |
|
|
Male |
$17.70 |
$28.17 |
$38.78 |
$40.35 |
$34.44 |
|
|
Employment |
-ALL- |
7.2% |
2.4% |
4.5% |
7.7% |
5.0% |
|
Female |
8.0% |
1.6% |
4.2% |
8.0% |
4.9% |
|
|
Male |
6.4% |
3.2% |
4.8% |
7.4% |
5.2% |
|
|
Males Earning More |
10% |
8% |
23% |
36% |
23% |
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