What is the average annual income in the US? As of October 18, 2023, according to the US Bureau of Labor Statistics, the average income in the US for full-time workers is $1,118 per week. Women had median weekly earnings of $1,005, or 83.2 percent of the $1,208 median for men.
The average salary in the US varies significantly across different states, reflecting disparities in the cost of living, job market dynamics, and industry concentration.
What Is The Average Salary In The US?
The Current Population Survey conducts a comprehensive nationwide sampling of households, where participants are queried about various aspects of their income. One specific inquiry involves asking employed individuals about their typical weekly earnings, capturing essential data on the wages and salaries of respondents.
A. Median Weekly Earnings: According to the Bureau of Labor Statistics (BLS), as of May 2023, the median weekly earnings for full-time US workers were $1,186. This translates to an estimated annual salary of $61,812.
B. Average Annual Salary: Forbes Advisor estimates the average annual salary in us to be $59,428. This figure is based on various sources, including the Census Bureau and the American Community Survey.
C. Other Metrics:
- Median household income: In 2021, the US Census Bureau reported that the median household income was $70,784. This includes income from all earners in a household, not just individuals.
- Mean annual wage: According to the BLS, the mean annual wage for all occupations was $74,738 in 2021. This means that half of all workers earned more than this amount and half earned less.
D. Factors Influencing Average Salary:
- Cost of Living: Certain states with a higher cost of living tend to offer higher salaries to compensate workers.
- Job Market: States with thriving economies and diverse industries often offer higher salaries due to greater competition for talent.
- Industry Concentration: States with a strong presence in high-paying industries like technology, finance, and healthcare typically have higher average salaries.
Average Annual Salary By States In US (2023)
The average annual salary in the US varies significantly across different states, reflecting disparities in the cost of living, job market dynamics, and industry concentration.
While average salaries provide a general overview, actual individual salaries can vary significantly depending on occupation, experience, education, and other factors.
Top Earners:
- California: Holding the crown with an average annual salary of $83,512, California's thriving tech, finance, and healthcare sectors contribute significantly to its high income levels.
- New York: Following closely behind, New York boasts an average salary of $82,448, fueled by its economic powerhouses in finance, media, and professional services.
- Massachusetts: Rounding out the top three, Massachusetts offers an average salary of $77,760, bolstered by its strong presence in technology, education, and healthcare.
Lower Echelons:
- Mississippi: Facing the reality of lower wages, Mississippi sees an average annual salary of only $49,692, primarily driven by its agricultural and manufacturing sectors.
- Louisiana: Following close behind, Louisiana grapples with an average salary of $51,452, reflecting its concentration in lower-paying industries like energy and agriculture.
- West Virginia: With an average salary of $53,244, West Virginia also faces the challenge of lower wages, mainly due to its reliance on manufacturing and mining industries.
Regional Analysis:
- Northeast Region: The highest average salary region with $65,383, influenced by strong economies in states like New York and Massachusetts.
- West Region: $60,579 with states like California and Washington boasting high salaries.
- Midwest Region: $56,114 with a more balanced distribution of salaries across states.
- South Region: $54,718 with lower average salaries compared to other regions.
Average Salary By Gender In US (2023)
Due to the limitations of readily available data, it's challenging to provide a comprehensive list of average salaries by gender for all 50 states in the US.
The gender pay gap represents the difference in average earnings between men and women. In the US, it remains a persistent issue, despite progress made in recent decades. The above data is an overview of the current situation.
Key Statistics:
- Men earn on average 18% more than women. (Bureau of Labor Statistics, 2023)
- The gender pay gap varies across different factors:
- Age: The gap is smallest for young workers and widens with age, reaching its highest point for women in their 40s and 50s.
- Occupation: The gap is larger in male-dominated occupations like computer and mathematical occupations and finance.
- Education: Women with advanced degrees still face a pay gap, although it is smaller than for women with lower levels of education.
- The gender pay gap has narrowed slightly in recent years, but it still persists.
Causes of the Gender Pay Gap:
- Occupational segregation: Women are more likely to be employed in lower-paying occupations.
- Discrimination: Women may face discrimination in hiring, promotions, and pay.
- Work-life balance challenges: Women often take on more unpaid childcare and housework, which can limit their career advancement and earning potential.
Average Salary By Age (2023)
In terms of age demographics, men between the ages of 35 and 64 exhibited the highest median weekly earnings. Specifically, men aged 35 to 44 had a median weekly earning of $1,401, those aged 45 to 54 earned $1,404, and men aged 55 to 64 earned $1,395.
A similar pattern was observed among women in the same age range, with median weekly earnings of $1,111 for those aged 35 to 44, $1,124 for those aged 45 to 54, and $1,077 for women aged 55 to 64.
The earnings contrast was most pronounced among individuals aged 16 to 24, with men in this group having a median weekly earning of $733 and women $695.
Notably, a narrower earnings gap was observed among younger workers, as women aged 16 to 24 earned 94.8 percent as much as their male counterparts in the same age group.
In contrast, among those aged 55 and over, the women's earnings ratio declined to 78.4 percent, highlighting a greater disparity in earnings between older male and female workers.
According to data from various sources, including the Bureau of Labor Statistics and Forbes Advisor, above is a breakdown of the average salary by age in the US for 2023:
Key Observations:
- Average salary generally increases with age, reaching its peak for individuals in the 45-54 age bracket.
- After the peak, the average salary tends to decline slightly for older age groups.
- There are significant variations in average salary across different age groups.
- The data presented is based on national averages and may not be representative of all professions or industries.
Average Earnings By Occupation In US (2023)
As per the data above, the profession that includes management and related occupations has the highest wages which is $56,447 thousand in the third quarter of 2023. Whereas the lowest paying occupation turns out to be of install and maintenance.
Resources for Further Information:
Websites like the Bureau of Labor Statistics offer cost-of-living calculators to help compare living expenses across different states. Analyzing specific job markets and salary trends within your desired field can provide valuable insights for career planning.
Here are some useful sites that are a reference to the above information and for your interest in further research.
- Bureau of Labor Statistics: https://www.bls.gov/oes/current/oessrcst.htm
- Forbes Advisor: https://worldpopulationreview.com/state-rankings/average-income-by-state
- National Center for the Elderly: https://www.nia.nih.gov/
