U.S. workers’ gross pay rose 4.7% in August, with sharp metro differences

  • ADP reported faster wage growth in several U.S. metropolitan areas during August.
  • Gross pay rose 4.7% year over year, while base pay increased 3.2%.
  • The Department of Labor said nationwide wages grew 3.1% annually, the lowest since May 2021.

U.S. workers’ gross pay increased 4.7% in August from a year earlier, while base pay rose 3.2%, according to ADP Pay Insights. Wage growth was considerably stronger in some metropolitan areas and exceeded inflation, particularly where job creation was healthy, labor was scarce and employee turnover was elevated. ADP also found stronger gains in cities with substantial manufacturing and financial-services employment. Separately, the Department of Labor said nationwide wages rose at an annual rate of 3.1%, the slowest pace since May 2021, even as payroll growth exceeded economists’ forecasts. ADP measures private-sector employment, while the government’s nonfarm payroll figures also include government jobs.

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