RESEARCH TRIANGLE PARK – People who are changing jobs – called “switchers” – are making a lot more money than workers who remain at current positions, especially as overall wage growth is cooling despite millions of unfilled jobs, according to a new report.
The U.S. workforce is in a turbulent state. In September, a record 4.3 million people let their jobs – what statisticians call “quits.” And a chance to make more money is a big reason.
ADP, a management services company, says in its latest ADP Research Institute Workforce Vitality report that job switchers have improved their compensation by nearly 6% over the past year. That compares to an average increase of just over 2% for all workers, ADP says.
And 20.4% of the workforce is looking for better jobs, thus becoming “switchers,” the report says.
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The data underscores the top concern of executives – 22% are most worried about labor force and talent availability, says the recent report from the Duke University CFO survey. That percentage doubled from the first quarter of this year. The number two issue was far behind: inflation at 13%.
In the tech space, for example, where thousands of jobs are going unfilled in the Triangle and across the state, pay could be a reason why firms are either having trouble retaining talent or having to pay more to fill open spots.
Technology workers who switch jobs have enjoyed a nearly 10% increase in compensation – three times the raises granted to employees who stayed in place. Currently, 20% of the tech workforce is switching, ADP says.
The tech sector is hardly the only one affected by “switchers.”
Employment continues to grow as reflected in the dropping unemployment rate from the height of the pandemic. And millions of jobs are going unfilled. Yet wage growth has cooled to 2.3% in the second quarter of this year, a drop of nearly 4 percentage points from the first quarter, ADP says.
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“ADP data shows a rise in U.S. job switchers across industries along with increased wage growth for switchers,” said Nela Richardson, chief economist, ADP. “The increase in wage growth for job switchers could be driven by employers struggling to find talent and are willing to offer competitive compensation to secure employees.”
Here’s a look at what’s going on across the jobs spectrum from ADP:
Wage and Employment Growth by Industry – June 2021
|
Industry |
Wages |
YOY Wage Growth |
Yearly Growth |
||||
|
All |
Holders |
Entrants |
Switchers |
Employment |
Switching |
||
|
-ALL- |
$30.85 |
2.32% |
3.08% |
3.26% |
5.83% |
3.47% |
20.39% |
|
Goods |
|||||||
|
Construction |
$30.86 |
4.23% |
4.50% |
5.81% |
5.94% |
-1.91% |
14.74% |
|
Manufacturing |
$32.09 |
2.45% |
3.36% |
6.17% |
6.73% |
-0.63% |
16.78% |
|
Resources and |
$39.35 |
-0.50% |
6.06% |
0.00% |
11.81% |
-1.27% |
5.33% |
|
Services |
|||||||
|
Information |
$45.39 |
2.63% |
3.74% |
3.97% |
9.75% |
-4.27% |
20.05% |
|
Finance and |
$36.13 |
1.55% |
3.89% |
5.73% |
7.84% |
0.96% |
16.83% |
|
Professional |
$39.31 |
4.37% |
4.72% |
7.53% |
9.59% |
3.73% |
22.84% |
|
Education and |
$28.89 |
1.61% |
1.92% |
3.51% |
4.46% |
4.11% |
18.69% |
|
Leisure and |
$18.96 |
-2.12% |
-1.39% |
0.18% |
-1.27% |
13.32% |
26.03% |
|
Trade, |
$27.24 |
4.89% |
4.12% |
0.41% |
2.21% |
3.03% |
23.42% |
