A monthly report from the payroll company ADP shows wage growth fell last month. They found in September workers who remained at their job for over a one-year period saw salaries grow by 5.9% year over year in September.
This represents a fall of 0.1% points since their August payroll report, ADP also found that those workers who changed jobs within a one-year period experienced a monthly wage growth decline of 0.7 points. Going from 9.7% in August to 9% in September.
The company’s data shows the September report is just one month out of a larger trend of slowing pay growth.
Last year job changers, typically younger workers with lower overall salaries, experienced a median annual pay growth of over 15%. During that same time frame, the pay growth for job stayers peaked at 7.9%. Since last year, monthly pay growth for both categories of worker trended down with changers falling about seven points and stayers falling three since their peak.
ADP is still showing wage growth for Gen Z workers, while the median pay for the nation’s youngest workers is still in the double digits and is the only age group with positive monthly change in pay growth. Their median salary in September hit $29,500 which is the highest in the three years of available data.
Younger millennial workers aged from 25 to 34 also recorded record monthly median salaries, but pay growth fell the most for them from 9% in August to 8.6% in September.
Arizona is among the states seeing a drop in median pay, ADP reported the median worker’s salary to be $51,000, a drop of $600.
Pay growth also fell 0.3% points from 7% to 6.7%. The state’s monthly decline in wage growth is the fifth highest in the country behind Wyoming, Idaho, Nevada, and Rhode Island.
Arizona is also one of fourteen states experiencing a decline in pay growth higher than 0.3% points.
