Human resources and payroll company ADP ranked cities across the nation based on three factors that determine labor market strength: annual wage growth, wages for new hires and employment rate.
Human resources and payroll company ADP ranked cities across the nation based on three factors that make for a strong labor market: annual wage growth, wages for new hires and employment rates.
The study, released in August, covered 55 U.S. cities with populations of over 1 million, according to ADP.
Among the top cities surveyed were Denver, Oklahoma City, Las Vegas, Seattle, Portland, Oregon.
Cities with the lowest rankings include Providence, Rhode Island; Tampa, Florida; Baltimore, Salt Lake City and Cleveland.
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Economists say the industry can play a key role in metropolitan areas' economies. (Kennedy Hayes/FOX Business)
Julia Pollack is chief economist at Zip Recruiter. Pollack says the lack of growth in industries and careers or jobs could be because many people are sticking with the status quo.
“People are saying we've gone from mass departures to mass stayers or mass stayers. Companies are hiring fewer employees, but there are also fewer layoffs and fewer job hops than before the pandemic,” Pollack said. “If you have a job you love, you have unprecedented job security. But if you're out of work or stuck in a job you hate, your future prospects are diminished,” Pollack said.
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For those for whom changing jobs or industries isn't an option, Pollack said the good news is the labor market may accelerate soon.
The Federal Reserve has signaled it will likely begin cutting interest rates as soon as September 18, which should help accelerate hiring and the labor market.
The ADP report ranked Denver as the hottest job market, with new hires earning an average hourly wage of $19. The monthly employment rate was 4.5%.
The study also noted that cities with thriving and resilient industries have an advantage in the job market. Denver, for example, has seen major hiring activity from companies such as PepsiCo. ADP said in the study that construction and manufacturing jobs were the biggest drivers of Denver's high ranking.
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PepsiCo Beverages North America spokeswoman Jessica Nielsen said the company is building its largest manufacturing facility in North America and plans to double its Denver workforce to 500.
A PepsiCo spokesman said the new manufacturing facility will be 1.2 million square feet. (Kennedy Hayes/FOX Business)
“We've been here since the 1950s. PepsiCo has a big presence in the community and we wanted to maintain that presence,” he said. And expand our footprint,” Nielsen said.
Nielsen said the new building will be named High Point.
A PepsiCo spokesman said the new facility will serve most Western states, including Utah, New Mexico and California. (Kennedy Hayes/FOX Business)
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According to the Bureau of Labor Statistics, the fastest-growing industries across states include health care, such as nurse practitioners and physician assistants, and government jobs, such as cybersecurity analysts.
