New ADP data suggests that, on average, U.S. workers who accepted a new job over the last 12 months are earning more per paycheck than if they had stayed with the same company.
Texans who worked with the same employer over the past 12 months saw their wages increase by 5.8% year over year in October, which fell in line with the national average of 5.7%, according to the latest ADP Pay Insights report.
Despite reporting a national wage growth of 5.7% year over year in October, ADP notes that it was the “slowest pace of growth since October 2021.” By contrast, job-changers saw their wages increase 8.4% year over year in October, although this was also the smallest increase since 2021.
As for the median annual salary in October, job-stayers in Texas earned $55,100, slightly below the national median pay of $57,800, data shows.
When looking at the third quarter of 2023, the year-over-year growth rate of wages and salaries in Texas rose by 3.8%, up from 3.5% in the second quarter, according to the latest data from the Federal Reserve Bank of Dallas.
“Texas job growth picked up in the third quarter, led by a sharp upturn in leisure and hospitality employment,” said Jesse Thompson and Ana Pranger with the Dallas Fed.
In a recent study, the Bank of America Institute acknowledged that switching jobs can often lead to higher wages. However, the study also noted the pay raise that job movers are getting is declining in 2023 compared to the prior year.
While wages in Texas were up 3.8% in Q3, average hourly earnings growth was only 2.8% year over year in Dallas-Fort Worth.
Although wage increases are slowing, the state is still experiencing accelerated job growth, as previously reported by The Dallas Express.
