The US labor market maintained its trend of growth in wages in the third quarter, according to the ADP Workforce Vitality Report released today.

The report tracks a set of workers to determine wage growth among those who are consistently employed. This set of workers falls into two categories: job holders and job switchers. Job holders are those who stay in the same job, and job switchers are those who change jobs.

Wages for job holders, overall, rose 4.3% year over year in the third quarter, the same rate as in the second quarter. Job switchers’ wage growth slowed slightly — to 3.6% in the third quarter from 3.7% in the first quarter. On average, job holders’ hourly wage levels are $10 more than that of job switchers.

“Employees in the information industry are experiencing some of the highest growth in wages, while overall employment growth in this area is relatively slow,” said Ahu Yildirmaz, VP and head of the ADP Research Institute. “I believe this is fueled by a war for talent among information industry employers who are increasing wages to attract and retain top talent.”

Workers under 25 posted the most robust wage growth among job holders, up 8.7%.

Considering wages across industries, the goods sector proved to be less attractive for job switchers compared to the service sector. Across the board in the industries in the service sector, job switchers' wage growth exceeded that of job holders. The information industry continues to lead the way in terms of wage growth at 5.2% and is the highest paid overall at $41.37 per hour. Among full-time job switchers, workers switching from leisure/hospitality jobs gained the most when making a move.

Looking at wage growth among only full-time workers, job switchers increased wages by an average of 5.0% and job holders increased wages by an average of 4.2%. 

Wage growth for full-time job holders and job switchers in the third quarter of 2016:     

• All: Holders 4.2%; switchers 5.0%
• Manufacturing: Holders 4.2%; switchers 2.7%
• Construction: Holders 4.7%; switchers 4.4%
• Resources and mining: Holders -0.1%; switchers -9.6%
• Finance and real estate: Holders 4.6%; switchers 5.0%
• Information: Holders 5.2%; switchers 6.8%
• Professional and business services: Holders 4.6%; switchers 6.4%
• Leisure and hospitality: Holders 5.2%; switchers 7.5%
• Education and health services: Holders 3.8%; switchers 6.6%
• Trade, transportation and utilities: Holders 4.1%; switchers 4.4%

The ADP Workforce Vitality Report was developed by the ADP Research Institute in collaboration with Moody’s Analytics.