As the U.S. economy continues to recover from the pandemic, the impact on various sectors of the economy has been uneven. While some sectors of the economy have seen steady growth throughout the pandemic—especially those able to operate remotely in addition to housing-related sectors—others, such as tourism and hospitality, have been hard hit. With the availability of widespread vaccinations, demand for in-person services has returned.
A common theme emerging from the economic recovery is the increase in costs of both raw materials and labor in some sectors of the economy. Many businesses are reporting shortages of available workers. The good news for workers in some sectors is that wages have risen in many jobs. In this analysis, AdvisorSmith examined data from the U.S. Bureau of Labor Statistics to find the sectors and jobs where average hourly wages have risen the most.
Nationwide, from May 2019 through May 2021, the average hourly wage for private-sector workers increased an average of 9.9%, rising from an average of $23.36 per hour in May 2019 to $25.67 per hour in May 2021.
Sectors With the Biggest Average Hourly Wage Increases
1. Business Services
Business services had the highest number of industries within the top 100 for wage increases. Selected industries within business services with the most wage inflation included social science and humanities research (#13; 19.4% increase), security and armored car services (#30; 15.9% increase), office administrative services (#34; 15.4% increase), and employment services (#38; 14.7% increase).
2. Retail
The retail sector is currently among the industries having the most difficulty finding workers in the current economy. Wages have risen substantially in certain parts of the retail economy, especially those related to home and home improvement goods.
Notably, wages have risen in furniture stores (#6; 23.2% increase), building material and garden supply stores (#10; 20% increase), and beer, wine, and liquor stores (#31; 15.8% increase).
3. Medical Services
Wage inflation in the medical sector continued during the pandemic, which is a continuation of a long-term trend. Wage inflation in the medical sector included freestanding emergency medical centers (#1; 26.9% increase), offices of mental health practitioners (#11; 20% increase), offices of chiropractors (#12; 19.8% increase), among others.
4. Automotive Retail and Services
The automotive sector also saw increases in wages throughout the pandemic and into the recovery. Selected automotive industries which saw wage increases included tire dealers (#17; 18.1% increase), automobile dealers (#25;16.8% increase), and car washes (#45; 14.3% increase).
5. Construction
The construction industry had strong performance during the pandemic, as commercial landlords took advantage of empty offices to remodel and homeowners social distancing at home spent more on remodeling. Selected construction industries with high wage growth included roofing contractors (#37; 15.1% increase), residential remodelers (#40, 14.6% increase), and poured concrete structure contractors (#46; 14.2% increase).
6. Home Services
Home services also had strong growth during the pandemic as Americans spent more time in their homes. Industries within home services with high wage growth included exterminating and pest control services (#16; 18.7% increase), household goods repair and maintenance (#50; 13.9% increase), and services to buildings and dwellings (#75; 12.6% increase).
Top 100 Industries With the Highest Wage Inflation
The table below shows the top 100 industries where average hourly wages rose the most from May 2019 through May 2021. The table includes the average hourly wage in each of May 2019, May 2020, and May 2021. It also shows the percentage increase in average hourly wages in each industry, along with the employment in each industry in May 2019 and May 2021. Finally, the change in employment over the two-year period is also listed.
| Rank | Industry | Average Hourly Wage: May 2019 | Average Hourly Wage: May 2020 | Average Hourly Wage: May 2021 | 2-Year Wage Increase % | Employment: May 2019 | Employment: May 2021 | Employment Change |
|---|---|---|---|---|---|---|---|---|
| 1 | Freestanding emergency medical centers | $28.36 | $33.65 | $35.99 | 26.9% | 145.4 | 155.7 | 7% |
| 2 | Other motor vehicle dealers | $20.51 | $21.27 | $26.00 | 26.8% | 134.4 | 135.7 | 1% |
| 3 | Professional employer organizations | $18.15 | $22.19 | $22.98 | 26.6% | 327.6 | 313.1 | -4% |
| 4 | Employment placement agencies and executive search services | $25.68 | $29.87 | $32.35 | 26.0% | 258.8 | 242.9 | -6% |
| 5 | Boilers, tanks, and shipping containers | $22.54 | $26.14 | $28.30 | 25.6% | 71.2 | 70.1 | -2% |
| 6 | Furniture stores | $19.04 | $20.39 | $23.45 | 23.2% | 185.5 | 174.1 | -6% |
| 7 | Poultry processing | $14.78 | $16.19 | $18.13 | 22.7% | 211.3 | 201.6 | -5% |
| 8 | Building material and supplies dealers | $17.55 | $19.76 | $21.37 | 21.8% | 1010 | 1013.8 | 0% |
| 9 | Support activities for road transportation | $18.03 | $22.16 | $21.80 | 20.9% | 90.7 | 84.3 | -7% |
| 10 | Building material and garden supply stores | $17.41 | $19.50 | $20.90 | 20.0% | 1148.8 | 1176.2 | 2% |
| 11 | Offices of mental health practitioners | $20.65 | $22.00 | $24.78 | 20.0% | 93.2 | 112 | 20% |
| 12 | Offices of chiropractors | $18.05 | $19.53 | $21.62 | 19.8% | 107.9 | 110.8 | 3% |
| 13 | Social science and humanities research | $35.28 | $39.39 | $42.12 | 19.4% | 50.8 | 46.2 | -9% |
| 14 | Other personal care services | $18.65 | $19.33 | $22.25 | 19.3% | 147.2 | 133 | -10% |
| 15 | Securities and commodity contracts brokerage and exchanges | $40.61 | $41.68 | $48.25 | 18.8% | 337.2 | 344.5 | 2% |
| 16 | Exterminating and pest control services | $19.79 | $22.01 | $23.49 | 18.7% | 106 | 112.6 | 6% |
| 17 | Tire dealers | $16.81 | $18.76 | $19.86 | 18.1% | 152.6 | 148.6 | -3% |
| 18 | Other miscellaneous store retailers | $15.40 | $16.14 | $18.11 | 17.6% | 296.1 | 320.1 | 8% |
| 19 | New car dealers | $23.25 | $25.24 | $27.33 | 17.5% | 967.7 | 922.3 | -5% |
| 20 | General line grocery | $21.86 | $24.45 | $25.58 | 17.0% | 206.5 | 196.2 | -5% |
| 21 | Savings institutions | $22.04 | $23.54 | $25.79 | 17.0% | 67.2 | 66.1 | -2% |
| 22 | Computer and office machine repair | $22.31 | $24.61 | $26.10 | 17.0% | 31.1 | 29.8 | -4% |
| 23 | Natural gas distribution | $37.34 | $40.70 | $43.65 | 16.9% | 88.1 | 86.9 | -1% |
| 24 | Other health and personal care stores | $18.38 | $19.53 | $21.48 | 16.9% | 87.4 | 87.9 | 1% |
| 25 | Automobile dealers | $22.81 | $24.74 | $26.64 | 16.8% | 1103.9 | 1060.7 | -4% |
| 26 | Business associations | $30.99 | $35.12 | $36.19 | 16.8% | 81.3 | 77.8 | -4% |
| 27 | Motor vehicle and parts dealers | $21.01 | $22.59 | $24.50 | 16.6% | 1689.9 | 1642.9 | -3% |
| 28 | Other building finishing contractors | $24.69 | $23.99 | $28.76 | 16.5% | 59.6 | 55 | -8% |
| 29 | Professional organizations | $31.88 | $35.35 | $37.04 | 16.2% | 62.4 | 59.8 | -4% |
| 30 | Security and armored car services | $15.73 | $16.66 | $18.23 | 15.9% | 741.7 | 708.7 | -4% |
| 31 | Beer, wine, and liquor stores | $13.30 | $15.38 | $15.40 | 15.8% | 128.4 | 126.4 | -2% |
| 32 | Offices of all other health practitioners | $23.48 | $24.35 | $27.15 | 15.6% | 120.7 | 116.7 | -3% |
| 33 | All other ambulatory health care services | $24.59 | $27.09 | $28.41 | 15.5% | 118.4 | 116.3 | -2% |
| 34 | Office administrative services | $27.72 | $29.29 | $31.98 | 15.4% | 405.5 | 418.2 | 3% |
| 35 | Hardware | $23.21 | $24.23 | $26.77 | 15.3% | 68.6 | 70.4 | 3% |
| 36 | AO Electronic connectors and misc. electronic components | $19.16 | $20.78 | $22.08 | 15.2% | 65.7 | 67.1 | 2% |
| 37 | Roofing contractors | $24.97 | $25.65 | $28.74 | 15.1% | 167.7 | 161.9 | -3% |
| 38 | Employment services | $18.98 | $21.60 | $21.77 | 14.7% | 3401.9 | 3062.1 | -10% |
| 39 | Emergency and other relief services | $18.03 | $19.45 | $20.68 | 14.7% | 143.8 | 147.5 | 3% |
| 40 | Residential remodelers | $23.22 | $24.85 | $26.61 | 14.6% | 240.3 | 270 | 12% |
| 41 | Process and logistics consulting services | $27.07 | $29.51 | $31.02 | 14.6% | 103 | 110 | 7% |
| 42 | Animal slaughtering and processing | $15.83 | $16.92 | $18.12 | 14.5% | 441.4 | 449 | 2% |
| 43 | Offices of physicians | $31.25 | $33.18 | $35.72 | 14.3% | 2220.9 | 2263.4 | 2% |
| 44 | Other gasoline stations | $13.92 | $14.89 | $15.91 | 14.3% | 89 | 87.3 | -2% |
| 45 | Car washes | $14.34 | $15.53 | $16.39 | 14.3% | 154.3 | 162 | 5% |
| 46 | Poured concrete structure contractors | $25.71 | $28.36 | $29.36 | 14.2% | 199.6 | 201.2 | 1% |
| 47 | Investigation and security services | $17.25 | $18.15 | $19.69 | 14.1% | 864 | 825.9 | -4% |
| 48 | Pet care services, except veterinary | $14.93 | $16.61 | $17.04 | 14.1% | 116.5 | 119.8 | 3% |
| 49 | Residential mental health and substance abuse facilities | $18.56 | $20.68 | $21.16 | 14.0% | 205.7 | 203.4 | -1% |
| 50 | Household goods repair and maintenance | $18.79 | $20.94 | $21.41 | 13.9% | 60.3 | 62.8 | 4% |
| 51 | Grantmaking and giving services | $32.82 | $34.37 | $37.39 | 13.9% | 134.4 | 130 | -3% |
| 52 | Janitorial services | $13.73 | $15.14 | $15.64 | 13.9% | 976.9 | 895.5 | -8% |
| 53 | Home health equipment rental | $17.52 | $18.51 | $19.95 | 13.9% | 28.8 | 26.8 | -7% |
| 54 | Convenience stores | $11.41 | $11.88 | $12.99 | 13.8% | 126.4 | 131.3 | 4% |
| 55 | Other ambulatory health care services | $22.05 | $23.62 | $25.09 | 13.8% | 273.7 | 273.2 | 0% |
| 56 | Commercial machinery repair and maintenance | $25.94 | $26.54 | $29.50 | 13.7% | 178.2 | 171.4 | -4% |
| 57 | Scientific research and development services | $42.02 | $45.16 | $47.76 | 13.7% | 544.3 | 610.6 | 12% |
| 58 | New motor vehicle parts | $19.43 | $20.38 | $22.08 | 13.6% | 139 | 130.5 | -6% |
| 59 | Framing contractors | $24.07 | $24.93 | $27.34 | 13.6% | 78.7 | 73.2 | -7% |
| 60 | Miscellaneous store retailers | $14.40 | $15.34 | $16.35 | 13.5% | 698.6 | 662.8 | -5% |
| 61 | Auto parts, accessories, and tire stores | $16.73 | $18.13 | $18.99 | 13.5% | 451.6 | 446.5 | -1% |
| 62 | Furniture and home furnishings stores | $18.64 | $20.02 | $21.14 | 13.4% | 393.9 | 364.7 | -7% |
| 63 | Residential mental health facilities | $16.12 | $17.65 | $18.27 | 13.3% | 562.3 | 518.7 | -8% |
| 64 | Data processing, hosting and related services | $36.68 | $39.00 | $41.55 | 13.3% | 272.9 | 296.6 | 9% |
| 65 | Research and development in the physical, engineering, and life sciences | $42.50 | $45.57 | $48.13 | 13.2% | 493.5 | 564.4 | 14% |
| 66 | Electronic shopping and mail-order houses | $20.63 | $21.48 | $23.36 | 13.2% | 320.4 | 360.1 | 12% |
| 67 | Limited-service restaurants | $11.59 | $12.18 | $13.12 | 13.2% | 4022.7 | 3812.2 | -5% |
| 68 | Plumbing and HVAC contractors | $28.76 | $30.43 | $32.52 | 13.1% | 817.7 | 835.8 | 2% |
| 69 | Basic chemicals | $28.81 | $29.39 | $32.56 | 13.0% | 93.6 | 93.6 | 0% |
| 70 | Ornamental and architectural metal products | $21.10 | $22.20 | $23.83 | 12.9% | 168 | 168.3 | 0% |
| 71 | Other individual and family services | $18.96 | $20.33 | $21.41 | 12.9% | 358.9 | 365.1 | 2% |
| 72 | Grantmaking foundations | $36.70 | $38.09 | $41.41 | 12.8% | 76.6 | 75 | -2% |
| 73 | Administrative and support services | $18.72 | $20.34 | $21.12 | 12.8% | 7959.5 | 7306.8 | -8% |
| 74 | Used car dealers | $19.42 | $21.15 | $21.88 | 12.7% | 136.2 | 138.4 | 2% |
| 75 | Services to buildings and dwellings | $16.22 | $17.59 | $18.27 | 12.6% | 1935.3 | 1857 | -4% |
| 76 | Nondepository credit intermediation | $28.35 | $30.72 | $31.89 | 12.5% | 443.8 | 477 | 7% |
| 77 | Lessors of residential buildings | $19.93 | $20.84 | $22.41 | 12.4% | 286.2 | 274.7 | -4% |
| 78 | Freight transportation arrangement | $22.86 | $23.97 | $25.70 | 12.4% | 187 | 184.2 | -1% |
| 79 | Administrative and waste services | $19.01 | $20.62 | $21.37 | 12.4% | 8335.1 | 7675 | -8% |
| 80 | Activities related to real estate | $23.19 | $24.54 | $26.05 | 12.3% | 547.2 | 540.9 | -1% |
| 81 | General freight trucking, long-distance LTL | $23.92 | $24.65 | $26.87 | 12.3% | 232.4 | 225.4 | -3% |
| 82 | Commercial banking | $23.46 | $25.13 | $26.35 | 12.3% | 1022.8 | 971.3 | -5% |
| 83 | Ambulance services | $20.22 | $21.12 | $22.71 | 12.3% | 155.3 | 156.9 | 1% |
| 84 | Advertising agencies | $33.06 | $33.82 | $37.12 | 12.3% | 145.5 | 134.7 | -7% |
| 85 | Rubber products | $19.69 | $19.28 | $22.10 | 12.2% | 102.8 | 97.5 | -5% |
| 86 | Landscape architectural services | $28.81 | $26.48 | $32.33 | 12.2% | 28.2 | 28.4 | 1% |
| 87 | Packaging and labeling services | $16.25 | $17.39 | $18.23 | 12.2% | 54.6 | 53.7 | -2% |
| 88 | Credit intermediation and related activities | $24.48 | $25.97 | $27.46 | 12.2% | 1990.7 | 1994.2 | 0% |
| 89 | Restaurants and other eating places | $13.46 | $13.52 | $15.09 | 12.1% | 9851.3 | 8941.7 | -9% |
| 90 | Other plastics products | $18.41 | $19.37 | $20.63 | 12.1% | 245.3 | 232.4 | -5% |
| 91 | Water and sewer system construction | $26.80 | $27.56 | $30.02 | 12.0% | 150.7 | 148.7 | -1% |
| 92 | Support activities for transportation | $22.64 | $24.64 | $25.36 | 12.0% | 631.4 | 577.7 | -9% |
| 93 | Druggists' goods | $31.14 | $31.97 | $34.86 | 11.9% | 188 | 176.4 | -6% |
| 94 | Cement and concrete products | $23.39 | $24.34 | $26.18 | 11.9% | 152.3 | 140.7 | -8% |
| 95 | Lessors of real estate | $21.31 | $22.32 | $23.84 | 11.9% | 475.6 | 453.5 | -5% |
| 96 | Publishing industries, except Internet | $36.84 | $38.74 | $41.21 | 11.9% | 603.1 | 593.9 | -2% |
| 97 | Ambulatory health care services | $26.24 | $27.62 | $29.35 | 11.9% | 6595.6 | 6694 | 1% |
| 98 | Household appliance stores | $19.03 | $19.02 | $21.28 | 11.8% | 39.1 | 38.5 | -2% |
| 99 | Securities, commodity contracts, investments, and funds and trusts | $41.19 | $42.52 | $46.05 | 11.8% | 705.8 | 733.8 | 4% |
| 100 | All other fabricated metal products | $20.20 | $21.48 | $22.57 | 11.7% | 136.5 | 123.1 | -10% |
Methodology
To determine the industries with the highest levels of wage inflation, AdvisorSmith examined the data published by the U.S. Bureau of Labor Statistics, Current Employment Statistics, which reports employment levels and wages for industries and jobs across the country on a monthly basis. We used the July 2, 2021 release of The Employment SItuation which reported the average hourly earnings for workers in various industries, as well as the employment levels in various industries.
To determine the industries where wages are rising the fastest, our study examined the average level of wages for nonsupervisory workers employed in private industries from May 2019 through May 2021, to capture the change in wages over the course of the pandemic.
Additionally, our study excluded industries with decreases in employment of over 10% over the same time period. Our reasoning for excluding these industries is that some industries experienced major contractions in employment due to the pandemic, such as movie production. These decreases in employment were effectuated primarily by layoffs and firings of more junior workers in the industry, with only the most senior workers retaining their employment.
In these industries, the cause of rising wages is not inflation but rather a change in the composition of the workforce, with only more senior employees being represented. Thus, we limited our analysis to sectors in which employment decreased by 10% or less and sectors where employment grew over the study period.
We ranked these industries based upon the percentage change in average hourly wage for nonsupervisory workers from May 2019 to May 2021 and found the top 100 industries with the highest percentage increases in wages. We also classified the top 100 industries into broader sectors and counted the sectors with the most number of industries represented among the top 100.
Sources
- U.S. Bureau of Labor Statistics, Current Employment Statistics
