Wage and Employment Growth Accelerating for Millennials
Millennials are seeing gains in wage and employment growth, according to new data from payroll giant ADP that also found significant gains among older workers who delay retirement.
The ADP Workforce Vitality Index, which measures the total wages paid to the U.S. private sector workforce, is 108 in the second quarter of 2015, growing 4.1 percent from a year ago and slightly higher than the previous quarter. For younger workers, the growth can be attributed mostly to strong growth in wages.
For older workers, the gains are mainly due to increased employment. The increase in employment in the older age group may be a result of more and more workers staying in their current jobs beyond the conventional retirement age while others are crossing the 55 age threshold. Younger workers are also working longer hours, whereas older workers are working less.
“The Vitality Index has several components: wage growth, employment growth and number of hours worked,” said ADP vice president Ahu Yildirmaz, head of the ADP Research Institute. “We have seen this quarter average hourly earnings increase by 2.5 percent year over year. This compares to 1.9 percent during the prior quarter. We see that wages accelerated this quarter. That, along with the employment growth, helped the increase in the Vitality Index.” Read more on Accounting Today.