The Upjohn Institute New Hires Quality Index for the second month was basically unchanged between November and December, at $21.23. Hiring rose 0.2 percent above its 13-year low. Hiring rates, which adjust for population growth, remain near a series low and are down 4.1 percent over the year.
Index creator Brad Hershbein takes a closer look at hiring trends for metro and nonmetro areas in this month’s news release. The wage index for newly hired workers in both metro and nonmetro areas grew from the start of 2022, with the metro area index rising higher before falling steadily. The nonmetro area index rose sharply, narrowing the gap with the metro area index before dropping sharply starting in the summer of 2024.
Hiring volume has fallen faster in nonmetro areas, off 8.8 percent from the start of the pandemic, compared to 4.8 percent for metro areas. Adjusting for metro areas’ stronger population growth, both areas experienced similar declines in hiring rates.
Despite some recent hiring gains, nonmetro areas continue to hold a small share of the total earnings power of all newly hired workers. Nonmetro areas saw their share slip from around 15 percent in 2005 to below 11 percent in 2021, where it has remained.
Read the full analysis or explore the index.
