US August job switchers' pay rose significantly more than for those who stayed, with base salary increasing by 4.7%.
ADP's latest report shows that base pay for job changers in the U.S. private sector increased by 4.7% in August, higher than the 3% for job stayers. When including total compensation such as tips, commissions, and bonuses, job changers' wages rose by 7.3% year-over-year, compared to 4.4% for job stayers. Data from the Atlanta Fed also indicates that median wage growth for job changers was 5% last month, while for job stayers it was 3.6%. Nela Richardson, chief economist at ADP, stated that even in a job market with fewer hires and layoffs, changing jobs remains an opportunity to increase wages. However, Diane Swonk, chief economist at KPMG, pointed out that despite the increased premium for changing jobs, the job-switching rate has not risen accordingly.
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