Millions of Americans opted to retire early during the COVID-19 pandemic in what has been termed the COVID Retirement Boom, and that drain on workforce participation could be playing a role in wage increases across the country.

According to payroll processing firm ADP Inc., from 2019 to 2021, and in contrast to years prior, low-end salaries increased most rapidly in cities with the lowest pay levels. Because it is more viable to remain out of the workforce in lower-cost cities, employers in those markets are struggling to hire and are offering increased pay to attract workers, the company’s “The Geography of Wage Growth” report theorizes.

As the economy opened back up following the worst of the pandemic, employers were able to bring back workers they previously employed or hire motivated workers. “But when that low-hanging fruit was picked, employers were left with a pool of candidates who had grown increasingly acclimated to living outside of the labor force. They had compelling reasons not to return to work, such as health concerns, school-aged children studying from home, or early retirement. In fact the latter may have been especially important, as the population in the nation’s low-income cities tends to be older than elsewhere.”

Complete your profile to continue reading and get FREE access to BenefitsPRO.com, part of your ALM digital membership.

Your access to unlimited BenefitsPRO.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical BenefitsPRO.com information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com

Already have an account?

 

BenefitsPRO

Join BenefitsPRO

Don’t miss crucial news and insights you need to navigate the shifting employee benefits industry. Join BenefitsPRO.com now!

  • Unlimited access to BenefitsPRO.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
  • Exclusive discounts on BenefitsPRO.com and ALM events.

Already have an account? Sign In Now
Join BenefitsPRO

Copyright © 2023 ALM Global, LLC. All Rights Reserved.