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Turnover Rates Indicate Stronger Labor Market

Tuesday, April 26, 2016

Although many sectors are still feeling the aftershocks of the recession, the job market is showing signs of improvement. According to the latest Workforce Vitality Report, full-time employees aged 25 to 34 got a 10 percent pay increase on average if they changed jobs during the first quarter of the year, up from 8.3 percent during the last months of 2015. Older employees who changed positions did well too. Workers aged 35 to 54 who switched positions saw an increase of 5 percent, versus last year’s 3 percent. And while turnover rates aren’t great for businesses, they do indicate that the labor market is improving. “These high rates of turnover are, of course, mostly good for employees, who are seeing many more opportunities and better pay,” Ahu Yildirmaz, chief economist of ADP Research Institute, which sponsored the study, said. “But people’s willingness to change jobs also means employers have a wider talent pool to draw from. So it’s not entirely bad for companies, either.”

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