National (US) Pay Trends

Updated

National Wage Growth, Q4 2023

0.2%
since last quarter
4.7%
year over year
34.7%
since 2006
SEE METHODOLOGY

Highlights Q4 2023

Miami leads nominal wage growth in Q4, at 0.7 percent Q/Q and 5.4 percent Y/Y. The largest urban economy in Florida is strong in sectors with high wage growth, such as transportation, professional services, and hospitality.

Historically a high performer for wage growth, San Francisco and San Jose have fallen in the ranks in previous quarters and remain last. San Francisco saw 3.2 percent Y/Y growth and -0.1 percent Q/Q growth. San Jose, 1.3 percent Y/Y and -1.1 percent Q/Q. Wage growth has likely been dampened by layoffs and instability in the tech sector.

Nonprofits rank first in nominal wages by industry in Q4, with 5.9 percent Y/Y and 0.6 percent Q/Q growth. This sector is expected to grow significantly as demand for social work grows and baby boomers enter retirement and bequeath trillions of dollars.

In last, the Technology industry saw -0.4 percent Q/Q growth and 2.8 percent Y/Y growth in Q4 2023. The Technology sector has had to weather significant layoffs, banking failures, and stock market instability.

Installation, Maintenance, & Repair jobs have kept the top spot in Q4, nominal wages for these jobs grew 6.8 percent Y/Y and 0.3 percent Q/Q. Facing turnover and hiring woes for skilled labor, as well as inflation impacting cost of living, this job group is experiencing particularly high upward wage pressure.

Information Technology jobs remain last in nominal wage growth in Q4, with 3.0 percent Y/Y growth and -0.4 percent Q/Q growth. These jobs have taken the brunt of layoffs and instability in the current economic climate.

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Real Wage Index

Since 2006, wages have risen 34.7 percent overall in the U.S. But when you factor in inflation, “real wages” have actually fallen 10.9 percent. In other words, the income for a typical worker today buys them less than it did in 2006. The Payscale Real Wage Index incorporates the Consumer Price Index (CPI) into The Payscale Index (which tracks nominal wages) and looks at the buying power of wages for full-time private industry workers in the U.S.

Real Wage Growth, Q4 2023

-0.6%
since last quarter
0.6%
year over year
-10.9%
since 2006
SEE METHODOLOGY

The Payscale Index: National Real Wage Index (US)

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Methodology for The Payscale Index: Trends in Compensation

The Payscale Index tracks quarterly changes in total cash compensation for full-time, private industry employees and education professionals in the United States. In addition to a national index, it includes separate indices for specific industries, metropolitan areas, job categories, and company sizes. The Payscale Index uses 2006 average total cash compensation as a baseline.

See full methodology for compensation trend reports.

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