Despite headline-grabbing pay increases across many sectors, the real story of American wage growth is far more nuanced, revealing a complex tug-of-war between rising paychecks and persistent inflation that has left many workers wondering if they are actually getting ahead.
Key Takeaways
- U.S. average hourly earnings for all employees on private nonfarm payrolls rose 4.1% year-over-year in December 2023
- Real median weekly earnings for full-time wage and salary workers increased by 0.3% from the fourth quarter of 2022 to the fourth quarter of 2023
- Nominal median weekly earnings grew 4.1% year-over-year in Q4 2023
- Real wages up 1.2% in Canada for 2023
- U.S. construction sector average hourly earnings grew 5.2% YoY Dec 2023
- Leisure and hospitality wages up 4.8% YoY in 2023
- Real median weekly earnings for men aged 25-54 grew 0.5% in 2023
- Women's real median weekly earnings up 1.1% YoY Q4 2023
- Black workers nominal wage growth 4.2% in 2023
- California average hourly earnings up 4.5% YoY Dec 2023
- New York state wage growth 4.2% in 2023
- Texas private sector wages up 5.1% YoY 2023
- OECD average wage growth 3.8% in 2023
- Germany real wages up 2.1% in 2023 after decline
- UK nominal wage growth 5.9% YoY Dec 2023
While nominal wages rose, real gains were modest and varied across industries.
Demographic Wage Growth
1Real median weekly earnings for men aged 25-54 grew 0.5% in 2023
Verified2Women's real median weekly earnings up 1.1% YoY Q4 2023
Verified3Black workers nominal wage growth 4.2% in 2023
Verified4Hispanic wage growth 4.5% YoY 2023
Directional5White non-Hispanic wages up 3.9% 2023
Single source6College graduates wage growth 3.6% YoY 2023
Verified7High school graduates only up 4.3% nominal 2023
Verified8Workers aged 25-34 saw 4.1% wage growth 2023
Verified9Ages 35-44 wage growth 3.8% YoY
Directional1045-54 year olds up 3.7% wages 2023
Single source11Workers over 55 wage growth 3.4% 2023
Verified12Men with bachelor's degree real wages up 0.8% 2023
Verified13Women without college up 4.6% nominal 2023
Verified14Asian American wage growth 4.0% YoY 2023
Directional15Union members wage growth 4.7% vs non-union 3.5% in 2023
Single source16Full-time workers median earnings $1,145 weekly up 4.1% 2023
Verified17Part-time median weekly earnings up 3.9% 2023
Verified18Low-wage workers (bottom 10%) up 5.2% 2023
Verified19High-wage (top 10%) growth 2.9% YoY 2023
Directional20Mothers vs fathers wage gap narrowed with 1.2% faster growth for mothers 2023
Single source21Veterans wage growth 4.0% vs non-vets 3.9% 2023
Verified22Disabled workers up 3.6% wages 2023
Verified23Immigrants native-born wage growth differential 4.4% vs 3.8% 2023
Verified24Gen Z workers (18-24) up 5.1% 2023
Directional25Baby boomers wage growth 2.8% YoY 2023
Single source26STEM educated wages grew 4.2% 2023
Verified27Non-STEM bachelor's up 3.5% 2023
VerifiedDemographic Wage Growth Interpretation
In a welcome plot twist for the American economy, 2023 saw a refreshingly equitable script where the understudies—lower-wage workers, women, and union members—finally got a few more lines and a significantly better payday than the usual leading actors.
Industry Sector Wage Growth
1Real wages up 1.2% in Canada for 2023
Verified2U.S. construction sector average hourly earnings grew 5.2% YoY Dec 2023
Verified3Leisure and hospitality wages up 4.8% YoY in 2023
Verified4Manufacturing wage growth 3.4% YoY Q4 2023
Directional5Financial activities sector wages rose 4.5% YoY 2023
Single source6Health care and social assistance hourly earnings up 4.0% YoY
Verified7Retail trade wages grew 3.9% YoY Dec 2023
Verified8Professional and business services up 4.1% wage growth 2023
Verified9Information sector wages increased 3.7% YoY Q4 2023
Directional10Transportation and warehousing up 5.0% YoY 2023
Single source11Education services wage growth 3.2% YoY
Verified12Mining and logging sector up 6.1% wages YoY Dec 2023
Verified13Utilities wages grew 4.3% YoY 2023
Verified14Wholesale trade up 4.2% wage growth 2023
Directional15Other services sector 3.6% YoY increase
Single source16Tech industry software developers wages up 4.5% in 2023
Verified17Construction laborers wages grew 5.8% YoY 2023
Verified18Registered nurses in health care up 3.9% 2023
Verified19Retail salespersons wages 4.1% YoY growth
Directional20Heavy truck drivers up 6.2% wages 2023
Single source21Accountants in finance grew 3.5% YoY
Verified22Food service workers up 5.3% in hospitality 2023
Verified23Lawyers in professional services 3.8% growth
Verified24Electricians in construction up 4.7% 2023
Directional25Software quality assurance up 5.1% in IT
Single source26Home health aides 4.4% YoY growth 2023
Verified27Bartenders in leisure up 6.0% wages
Verified28Financial managers 4.0% growth 2023
VerifiedIndustry Sector Wage Growth Interpretation
The wage parade of 2023 saw everyone get a slightly bigger hat, though the miners and bartenders are now wearing top hats while teachers are still adjusting their caps.
International Wage Growth
1OECD average wage growth 3.8% in 2023
Verified2Germany real wages up 2.1% in 2023 after decline
Verified3UK nominal wage growth 5.9% YoY Dec 2023
Verified4France wages grew 4.2% in 2023
Directional5Japan average wage increase 2.3% in 2023 shunto
Single source6Canada average hourly wages up 4.0% YoY 2023
Verified7Australia wage growth 4.1% annually Q4 2023
Verified8Euro area compensation per employee up 4.7% YoY Q4 2023
Verified9China urban wage growth 5.8% in 2023
Directional10India real wage growth 2.5% for regular workers 2023
Single source11Sweden wages up 4.5% 2023
Verified12South Korea minimum wage up 5.0% to 9,860 KRW/hour 2024
Verified13Brazil formal sector wages grew 4.3% 2023 adjusted
Verified14Mexico wage growth 4.9% nominal 2023
Directional15Spain real wages down 0.5% but nominal 3.2% 2023
Single source16Italy compensation per employee 3.9% YoY 2023
Verified17Netherlands wages up 5.1% 2023
Verified18Switzerland nominal wages 2.0% growth 2023
Verified19Singapore wage growth 5.5% for rank-and-file 2023
Directional20South Africa average wage increase 6.2% in 2023 surveys
Single source21Russia real wages up 7.4% in 2023
VerifiedInternational Wage Growth Interpretation
While the global wage party featured a respectable average tempo, its attendees danced to wildly different beats, from Germany's cautious waltz into positive territory and Spain's unfortunate stumble with inflation, to Russia's unexpectedly boisterous mazurka and South Africa's vibrant jive.
Overall Economy Wage Growth
1U.S. average hourly earnings for all employees on private nonfarm payrolls rose 4.1% year-over-year in December 2023
Verified2Real median weekly earnings for full-time wage and salary workers increased by 0.3% from the fourth quarter of 2022 to the fourth quarter of 2023
Verified3Nominal median weekly earnings grew 4.1% year-over-year in Q4 2023
Verified4Average hourly earnings for production and nonsupervisory employees increased 4.2% from December 2022 to December 2023
Directional5Compensation costs for civilian workers increased 4.0% over the 12 months ending December 2023
Single source6Wages and salaries for civilian workers rose 3.9% year-over-year in Q4 2023
Verified7U.S. real average hourly earnings declined 0.4% from November 2022 to November 2023
Verified8Nominal average hourly earnings grew 4.1% YoY in May 2024
Verified9Employment Cost Index for wages rose 4.2% over 12 months ending March 2024
Directional10Private industry compensation costs increased 3.9% YoY in Q1 2024
Single source11U.S. wage growth for all private employees was 3.8% in 2023 annually
Verified12Atlanta Fed Wage Growth Tracker showed 4.1% median wage growth in April 2024
Verified13U.S. average weekly earnings rose 3.5% YoY in 2023
Verified14Real hourly wages grew 0.5% in 2023 for typical workers
Directional15Nominal wage growth averaged 4.6% in 2022 for U.S. workers
Single source16U.S. unit labor costs increased 2.7% in Q4 2023, related to wage pressures
Verified17Wage growth for private sector was 4.3% YoY in June 2024
Verified18Real compensation per hour fell 1.1% in Q1 2024
Verified19U.S. labor share of income showed wage growth stagnation at 62.4% in 2023
Directional20Average annual wages in U.S. reached $59,384 in 2022, up 5.4% from 2021
Single source21Wage growth slowed to 3.2% in manufacturing overall in 2023
Verified22EPI reports typical worker wages up 1.7% real in first half 2024
Verified23FRED data: Real median personal income grew 0.2% YoY in 2023
Verified24BLS: All employees hourly earnings up 3.9% YoY Q2 2024
Directional25Wage Phillips curve suggests 3.5% growth in 2024
Single source26U.S. decile wage growth at 10th percentile was 4.5% nominal 2023
Verified2790th percentile wage growth 3.2% YoY 2023
Verified28Median wage growth 3.8% for U.S. in 2023
Verified29Atlanta Fed tracker at 3.9% in June 2024
Directional30Nominal wage growth 4.0% projected for 2024
Single sourceOverall Economy Wage Growth Interpretation
Reading this spread of data feels like watching wages sprint admirably on a treadmill of inflation, where the nominal cheers are loud but the real finish line keeps frustratingly drifting just out of reach.
Regional Wage Growth
1California average hourly earnings up 4.5% YoY Dec 2023
Verified2New York state wage growth 4.2% in 2023
Verified3Texas private sector wages up 5.1% YoY 2023
Verified4Florida hourly earnings growth 4.8% 2023
Directional5Midwest region average 3.9% wage growth Q4 2023
Single source6Northeast wages up 4.0% YoY 2023
Verified7South Atlantic states 4.6% growth 2023
Verified8Pacific division (West Coast) up 4.3% 2023
Verified9Urban areas median wage growth 4.1% vs rural 3.7% 2023
Directional10Rust Belt states (OH, MI, PA) average 3.5% wage growth 2023
Single source11Sun Belt (AZ, NV) up 5.3% YoY 2023
Verified12NYC metro area wages grew 4.4% 2023
Verified13Los Angeles metro up 4.7% 2023
Verified14Chicago wages 3.8% growth YoY
Directional15Boston area 4.2% wage increase 2023
Single source16Dallas-Fort Worth up 5.0% 2023
Verified17Seattle metro wages grew 4.9% YoY 2023
Verified18Rural Midwest counties 3.2% growth 2023
Verified19Appalachian region up 4.1% 2023
Directional20Great Plains states average 4.0% wage growth
Single source21New England states 3.9% YoY 2023
Verified22Mountain West (CO, UT) up 4.6% 2023
Verified23Gulf Coast (LA, MS) 4.4% growth 2023
Verified24Upper Midwest (MN, WI) 3.7% 2023
DirectionalRegional Wage Growth Interpretation
The nation's wage growth paints a clear picture of workers chasing the sun, with the Sun Belt's sizzling 5.3% leads illuminating a stubbornly cooler and more tepid Rust Belt trailing at 3.5%, proving that while everyone got a raise, some thermostats are simply set higher than others.
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