Workers who switched jobs to go from part-time to full-time employment experienced a decline in average hourly earnings in most industries in the fourth quarter, according to a new report from payroll giant ADP.
ADP’s Workforce Vitality Report found that overall wage growth in the fourth quarter of 2015 was 2.1 percent. For full-time workers, wage growth was 4.1 percent for those who held onto their jobs and 4.7 percent for full-time workers who switched jobs.
However, in some industries, average hourly wages actually declined for workers who switched jobs in order to go from part-time to full-time work, including professional and business services, finance and real estate, resources and mining, and information. Overall, there was a 5.8 percent decline. The average hourly wages increased, however, for some industries, such as manufacturing, leisure and hospitality, and the combined trade, transportation and utilities sector.
To ADP, the findings imply that workers are willing to accept lower average hourly wages if full-time work brings them benefits and a higher total income.
“Perhaps they are switching for better working conditions or a shorter commute,” said ADP vice president Ahu Yildirmaz, who heads the ADP Research Institute, during a conference call. “They are willing to accept lower hourly wages if benefits come with it.”
Wage growth for individual workers varied across industries during the past year, ADP found. Sectors such as information, finance and real estate, and professional and business services improved measurably during the year. Although job holders did well in the manufacturing and construction industries, job switchers did not fare as well. Leisure and hospitality, education and health services, finance and real estate, information and professional and business services offer better opportunities for job switchers. However, given the struggles in the energy sector from falling oil prices, growth has been lowest among both job holders and job switchers in natural resources and mining.
Wage Growth for Switchers Who Move from Part-time to Full-time
Year-over-Year Wage Growth | Switchers |
ALL | -5.8% |
Manufacturing | 5.2% |
Construction | -1.7% |
Resources and Mining | -6.7% |
Finance and Real Estate | -7.0% |
Information | -9.1% |
Professional and Business Services | -5.6% |
Leisure and Hospitality | 11.8% |
Education and Health Services | -1.4% |
Trade, Transportation and Utilities | 7.4% |
