Report: Wages Continue to Inch Up in Michigan

The American Society of Employers in Livonia released its annual 2019 Compensation Survey results, which showed actual wages increased 2.7 percent year over year, while merit increase budgets increased an average 3 percent.
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Actual wages have increased 2.7 percent year over year, according to ASE’s 2019 Compensation Survey results. // Stock photo

The American Society of Employers in Livonia released its annual 2019 Compensation Survey results, which showed actual wages increased 2.7 percent year over year, while merit increase budgets increased an average 3 percent.

“This year’s survey results showed a continuation of the modest wage gains we have seen for the last several years,” says Mary E. Corrado, president and CEO of ASE. “However, despite the lack of volatility in wages, there remains challenges.

“Digging deeper into the data does reveal that jobs that require technical skills are commanding higher rates of increases than others. While that is not unexpected, it does require employers to proactively engage in ongoing market assessments. Unless something derails the current economic expansion, we expect pressures on wage growth to accelerate given the tightening labor supply.”

A total of 335 companies, 57 percent of which are located in metro Detroit, responded to the survey, which was distributed online to human resources professionals in January. Nearly 40 percent of the respondents were automotive suppliers, and 474 jobs were reported on. About 83 percent of the organizations that responded have up to 500 employees.

Organizations offering variable or incentive pay showed a slight increase to 83 percent in 2019 compared to 81 percent in 2018.

Several fields had average wage increases of 3.5 percent and higher, with the engineering support, human resources, inspection/quality, and supply chain/logistics job families each showing increases of 3.7 percent or higher.

Product development engineering and electric engineering job groups average wage increases were 3.8 percent and 3.6 percent, respectively.

This is the 67th year that ASE has published the annual survey. To obtain a copy of the results, contact Kevin Marrs, vice president of ASE, at (248) 223-8025 or kmarrs@aseonline.org.

The society was founded in 1902 and is a not-for-profit employer association providing people-management information and services to Michigan employers.

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