Millennial hourly wages are higher than those of any other generation, according to the latest data from Paychex.
In its latest report, “The Rise of the Millennial Employee,” Paychex found that millennials' employment in hourly work has been steadily increasing since 2011, while hourly employment of Generation X and Baby Boomers have been steadily declining.
On average, millennials are seeing faster wage growth, too, and make $21.80 per hour, with annual hourly earnings hitting a growth rate nearly double the national rate (5.8 percent compared to 3 percent). Millennials also work less than the national average, putting in 38.6 hours per week, compared to 38.8 hours per week for hourly workers overall.
In addition, Paychex found that the west holds the greatest portion of millennial workers at small businesses — with 40.2 percent of small and medium-sized businesses (SMB) employees falling into this generation — though every region has at least a third of its small business workforce accounted for by millennials. The leisure and hospitality industry seems to be the most popular destination for millennial employees, with nearly half (49.9 percent) of overall employment in this sector made up by millennials. Professional and business services and education and health services, similarly hold high portions of millennial employees.
One key finding, Paychex noted, is the gender gap between millennial workers. The average hourly wage for a female millennial is $20.44, while it's $23.03 for men. Female millennial hourly workers also experience a lower annual growth rate in hourly wages at 5.3 percent, compared to 6.2 percent for men.
“Though the millennial gender pay gap is smaller in every industry compared to the all-generation gaps, in no industry do female millennials outpace males in wage growth,” Paychex found.
Paychex said the data should be used by employers to engage with the growing millennial workforce.
“Listen to what millennials are looking for in a workplace,” the company said in its report, adding that employers should consider offering flexible work hours, moving quickly in the recruiting process, provide goal-oriented feedback, provide meaningful work opportunities and foster professional connections between employees and mentors and colleagues.