RESEARCH TRIANGE PARK – This new report will likely cause you to ask: How much was my raise (if any)? And: Is it time to move on to a new job in order to bump your compensation package?
ADP, which focuses on human resources, talent, time management, benefits and payroll, says in its latest employment report that wages have soared this year with inflation at levels not seen in decades – nearly 8% through October. And demand for workers remains high with millions of jobs going unfilled despite a surge in layoffs across the tech sector.
- Job changers have achieved a median increase of more than 15%
- Those who have stayed loyal are getting on average 7.6% raises
(For those working in North Carolina, “stayers” have done even better at 7.9% median increase in pay, ADP says. Changers data is not available for state-by-state.)
Raises have fallen since earlier in the year, however.
“Pay growth remained elevated even as it continued a modest but broad-based deceleration,” ADP says. “Job changers notched their fifth straight slowdown and the smallest increase in pay since January. Pay growth for job stayers edged down, too, led by leisure and hospitality, which had a rapid run-up in 2021 but has been falling since March.”
Federal Reserve interest rate hikes are biting into the jobs market. ADP notes.
“Turning points can be hard to capture in the labor market, but our data suggest that Federal Reserve tightening is having an impact on job creation and pay gains,” said Nela Richardson, chief economist at ADP. “In addition, companies are no longer in hyper-replacement mode. Fewer people are quitting and the post-pandemic recovery is stabilizing.”
ADP bases its findings on tracking of data on more than 10 million workers over the past 12 months. Large farms are paying more on average, and the best raises are coming in the leisure/hospitality sector which is still recovering from the COVID pandemic wipeout.
Raises also differ based on the industry sector in which you work Here’s what ADP found:
Median Change in Annual Pay for Job-Stayers by Industry Sector
- Natural resources/mining 7.8%
- Construction 6.8%
- Manufacturing 7.5%
- Trade/transportation/utilities 8.1%
- Information 7.3%
- Financial activities 7.8%
- Professional/business services 6.8%
- Education/health services 7.2%
- Leisure/hospitality 10.8%
- Other services 6.8%
Median Change in Annual Pay for Job-Stayers by Firm Size
- 1-19 employees 5.6%
- 20-49 employees 7.2%
- 50-249 employees 7.9%
- 250-499 employees 7.8%
- 500+ employees 8.1%
Read more about the report at: https://adpemploymentreport.com/