The US labor market maintained its trend of growth in wages in the second quarter but at a slower pace, according to the ADP Workforce Vitality Report released today. Growth in hours worked and employment drove gains.

The report tracks a set of full-time workers to determine wage growth among those who are consistently employed. This set of full-time 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 full-time job holders rose 3.2% year over year in the second quarter, down from 4.6% in the first quarter. Job switchers’ wage growth also slowed — to 5.1% in the second quarter from 6.0% in the first quarter — though they still maintain higher wage growth than holders.

“The positive trend in wage growth over the past few quarters suggests that wages may finally reflect the tightening labor market,” said Ahu Yildirmaz, VP and head of the ADP Research Institute. “Employers are continuing to provide raises to their workers for retention.”

Workers under 25 posted the most robust wage growth among job holders, up 7.6%.

Wage growth for full-time workers varied across industries during the past four quarters. Wage growth slowed in every industry but remained strong in most, with the exception of natural resources and mining. The information industry continues to lead the way in terms of wage growth at 6.5%.

Wage growth for job holders and job switchers in the second quarter of 2016:     

• All: Holders 3.2%; switchers 5.1%
• Manufacturing: Holders 3.6%; switchers 2.1%
• Construction: Holders 3.8%; switchers 5.7%
• Resources and mining: Holders -2.6%; switchers -8.1%
• Finance and real estate: Holders 3.4%; switchers 4.5%
• Information: Holders 6.5%; switchers 6.0%
• Professional and business services: Holders 2.9%; switchers 5.8%
• Leisure and hospitality: Holders 4.5%; switchers 7.1%
• Education and health services: Holders 2.8%; switchers 4.0%
• Trade, transportation and utilities: Holders 3.0%; switchers 7.8%

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