job hoppers make biggest gainsAn ADP Research Institute analysis of workforce data finds that wages are going up and directly contributing to a more vital U.S. economy. Those who job-hop are making the greatest gains in wages. Small-business employees are experiencing higher wage hikes than those who work for large corporations.

“Since the beginning of 2013, job holders’ wages have become the primary contributor to growth. This may mean that employers are becoming more confident about the economy and are focusing on retaining their talent by raising wages,” ADP reported in its summary of results. “The contribution from employment gains has remained steady.”

Key findings related to wage growth include:

  • Wages grew nationally in Q3 2014, but the fastest growth in real hourly wage has been among Millennials. Generation X and Baby Boomers caught up in Q3 2014.
  • Employees at small businesses (fewer than 50 employees) have higher wage growth than larger companies.
  • Wage disparity between men and women is highest when looking at job switchers (men with 5.7 percent wage growth versus women at 4.6 percent), but the data don’t indicate that the gender gap will disappear any time soon.
  • Job switchers are experiencing much faster wage growth (5.3 percent) than job holders (0.8 percent).
  • Low wage workers (less than $20,000/year) have the highest turnover rate (8.6 percent) of any wage tier while low-wage job switchers are experiencing the highest rate of wage growth at nearly 10 percent.
  • The index grew faster in the South and West compared to the Northeast and Midwest regions. Real hourly wage growth and employment growth has driven the growth in the South and West.
  • Professional services, which include technology companies, drove employment growth in the South.
  • Real hourly wages grew most quickly in trade industries, which include retail trade.


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