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April 27, 2016

Q1 2016 Sees Accelerated Growth in Wages

ADP News Release (04/20/16)
A recent article from ADP, said the labor market has maintained its improvement in 2016’s first quarter according to the ADP Workforce Vitality Report. The acceleration was apparent in almost all industries, as well as in all age groups among full-time workers. “Year-[to]-year wages grew substantially for job holders in Q1 2016, rising from 4.1% in Q4 2015 to the current 4.6%,” says Ahu Yildirmaz, vice president and head of the ADP Research Institute. “This is a signal that continued employment growth is leading to a smaller pool of available talent, in turn motivating employers to increase wages to retain experienced workers.”

Bloomberg BNA reported the rate of wage growth for most U.S. workers will likely spike in the second half of the year, according to their most recent Wage Trend Indicator. Kathryn Kobe, an economist who maintains and helped develop Bloomberg BNA’s WTI database, said that she expects a 2.5% to 3% improvement in the rate of wage growth within the next six to nine months. Workers who switched from a full-time job to another full-time job experienced moderate to high growth in their hourly wages, across almost all industries. Workers who moved from a part-time job to a full-time job generally saw a decrease in hourly wage.