Although salaries have increased, the rate of growth has slowed down compared to the 7.3% rise seen between 2021 and 2022.
Salaries and wages in the United States have been on the rise annually, but the specifics can vary widely based on several factors such as location and age. For instance, Mississippi has the lowest average income at approximately $48,000, as reported by the U.S. Bureau of Labor Statistics.
To understand how your earnings stack up against others both nationally and within your state, we’ve gathered official data to provide a detailed breakdown of average salaries. This analysis covers different categories such as age, race, gender, occupation, state, and educational background.
Key Findings on Average Salaries:
- National Average: In the fourth quarter of 2023, the national average salary was $59,384.
- By Age: Individuals aged 35 to 44 are the highest earners, making 13.8% more than the national average.
- By State: Mississippi has the lowest average income ($48,048), while Massachusetts has the highest ($86,840).
- By Occupation: Cardiologists were the top earners in 2022 with an average salary of $421,330, while shampooers earned the least at $27,870.
- By Race/Ethnicity: Hispanics and Latinos had the lowest average income ($45,968), and Asians had the highest ($79,456).
- Household Income: The average family household income was $74,755 in 2022.
- By Gender: The gender pay gap narrowed by 0.7% last year but had increased by 1.3% between 2021 and 2022.
- By Education: Full-time workers over 25 without a high school diploma earned an average of $47,580 annually.
- Wage Growth vs. Inflation: Salaries grew by 4.4% in 2023, whereas the Consumer Price Index rose by 3.4%.
Detailed Breakdown:
Annual Earnings in the U.S.
In the fourth quarter of 2023, the average annual salary in the U.S. was $59,384, marking a 5.4% increase from the previous year. The average weekly earnings were $1,142, translating to $4,949 monthly. Although salaries have increased, the rate of growth has slowed down compared to the 7.3% rise seen between 2021 and 2022.
Gender Pay Disparities
Despite a slight reduction in the gender pay gap over the past decade, it narrowed by only 0.7% between 2022 and 2023. Men earned an average of $63,960, while women earned $53,404. This gap varies with age, being less significant among younger workers and more pronounced among older ones.
Income Disparities by Race and Ethnicity
There are notable differences in earnings based on race and ethnicity. White males have an average income of $64,636, while Hispanic or Latino males earn $47,996. The data also shows that Asians earn the most on average ($79,456), while Hispanics and Latinos earn the least ($45,968).
Salary by Age
Individuals aged 35 to 44 are the highest earners, averaging $1,303 per week or $67,756 annually. Earnings peak in this age group and decline afterward, with those aged 45 to 54 earning $66,300 and those aged 55 to 64 earning $64,688. The lowest earners are those aged 16 to 24, with an average annual income of $38,168.
State-Specific Incomes
Mississippi has the lowest average income at $48,048, followed by Arkansas, South Dakota, and Idaho. In contrast, Massachusetts leads with $86,840, followed by Washington, California, and New York. The cost of living varies significantly, impacting how these salaries are perceived in different states.
Occupational Earnings
Medical professionals dominate the highest-earning occupations, with cardiologists leading at $421,330. Other high earners include orthopedic and pediatric surgeons. The lowest-paid jobs include shampooers, fast food cooks, and amusement park attendants.
Education and Earnings
Education greatly influences earning potential. Workers without a high school diploma earn an average of $47,580, while those with advanced degrees (e.g., master’s degrees) earn $144,300. The gender pay gap is most pronounced among those without a college diploma.
Wage Growth vs. Inflation
While wages grew by 4.4% in 2023, the Consumer Price Index increased by 3.4%. Some states, like New Mexico, saw wages grow faster than inflation, whereas others, such as New Jersey, experienced slower wage growth compared to inflation.