ADP released its 3rd quarter Workforce Vitality Index which shows accelerated wage growth. The index is driven by metrics including job holders’ wages, job holders’ hours worked, job switchers’ wages, and total employment.
Key observations show wage growth among job holders improving as companies strive to retain top talent as shared in the press release. “As the overall economy improves, wage growth among job holders appears to be picking up momentum based on the numbers over the first three quarters of this year“, said Ahu Yildirmaz, VP and head of the ADP Research Institute®. “This may be based on companies wanting to retain top performers as job openings start to outpace the available talent pool.”
Of additional note, the homebuilding and commercial construction industries are continuing to see increased wages along with talent shortages. The press release points out “wage growth accelerated in construction and job switchers in that industry could expect boosts of almost 20%. Home construction remained fairly steady in the third quarter and commercial construction has accelerated. Talent shortages are growing and thus driving up the wages that contractors are offering to lure experienced and skilled workers.”
Source: ADP® Workforce Vitality Report Shows Accelerated Wage Growth in Q3