Editor’s Notice: This story initially appeared on Smartest Dollar.
On the floor, the financial system of the final two years has been extraordinarily favorable to staff.
After spiking to just about 15% early within the COVID-19 pandemic, the U.S. unemployment rate right now sits round 3.5%. Regardless of employers’ urgency to rent, labor force participation has been slower to get better, and the “Nice Resignation” has staff quitting at historic rates searching for higher jobs.
With these elements contributing to a good labor market, staff have extra alternative of job alternatives, and extra employers have been elevating wages to rent and retain staff. Because of this, nominal wages are rising sooner than at any level in not less than 20 years.
However rising inflation over the course of 2021 and 2022 has taken a chew out of rising wages. Yr-over-year inflation (YoY), as measured by the Consumer Price Index, has hovered round or above 8% for a lot of 2022.
Costs for important bills like meals, shelter, and vitality have skyrocketed resulting from provide challenges. With costs rising so shortly, staff are discovering that their elevated pay doesn’t go so far as that they had hoped.
Whereas nominal wages proceed to rise to document heights, inflation-adjusted wages have proven indicators of decline. In non-adjusted {dollars}, common weekly wages spiked to $1,339 within the final quarter of 2020 and rose once more to $1,418 within the final quarter of 2021. However in inflation-adjusted {dollars}, wages really decreased by 0.8% over that span, from $1,429 to $1,418.
To find out the places the place pay is rising the quickest, researchers at Smartest Greenback—a evaluation web site for small enterprise insurance coverage—calculated the non-adjusted share change in wages from Quarter 4 of 2020 to Quarter 4 of 2021. The info used on this evaluation is from the U.S. Bureau of Labor Statistics’ Quarterly Census of Employment and Wages. Learn our methodology on the finish.
Listed below are the big U.S. metros (inhabitants 1 million or extra) the place wages are rising quickest.
15. New Orleans-Metairie, LA
- Non-adjusted share change in wages (YoY): +6.3%
- Inflation-adjusted share change in wages (YoY): -0.4%
- Non-adjusted complete change in weekly wages (YoY): +$75
- Common weekly wages This fall 2021: $1,265
- Common weekly wages This fall 2020: $1,190
14. Seattle-Tacoma-Bellevue, WA
- Non-adjusted share change in wages (YoY): +6.6%
- Inflation-adjusted share change in wages (YoY): -0.1%
- Non-adjusted complete change in weekly wages (YoY): +$126
- Common weekly wages This fall 2021: $2,033
- Common weekly wages This fall 2020: $1,907
13. Charlotte-Harmony-Gastonia, NC-SC
- Non-adjusted share change in wages (YoY): +6.8%
- Inflation-adjusted share change in wages (YoY): +0.1%
- Non-adjusted complete change in weekly wages (YoY): +$87
- Common weekly wages This fall 2021: $1,358
- Common weekly wages This fall 2020: $1,271
12. Atlanta-Sandy Springs-Alpharetta, GA
- Non-adjusted share change in wages (YoY): +7.0%
- Inflation-adjusted share change in wages (YoY): +0.3%
- Non-adjusted complete change in weekly wages (YoY): +$94
- Common weekly wages This fall 2021: $1,436
- Common weekly wages This fall 2020: $1,342
11. Cleveland-Elyria, OH
- Non-adjusted share change in wages (YoY): +7.1%
- Inflation-adjusted share change in wages (YoY): +0.3%
- Non-adjusted complete change in weekly wages (YoY): +$87
- Common weekly wages This fall 2021: $1,319
- Common weekly wages This fall 2020: $1,232
10. Chicago-Naperville-Elgin, IL-IN-WI
- Non-adjusted share change in wages (YoY): +7.2%
- Inflation-adjusted share change in wages (YoY): +0.4%
- Non-adjusted complete change in weekly wages (YoY): +$104
- Common weekly wages This fall 2021: $1,556
- Common weekly wages This fall 2020: $1,452
9. Salt Lake Metropolis, UT
- Non-adjusted share change in wages (YoY): +7.3%
- Inflation-adjusted share change in wages (YoY): +0.6%
- Non-adjusted complete change in weekly wages (YoY): +$96
- Common weekly wages This fall 2021: $1,407
- Common weekly wages This fall 2020: $1,311
8. Orlando-Kissimmee-Sanford, FL
- Non-adjusted share change in wages (YoY): +8.1%
- Inflation-adjusted share change in wages (YoY): +1.3%
- Non-adjusted complete change in weekly wages (YoY): +$92
- Common weekly wages This fall 2021: $1,233
- Common weekly wages This fall 2020: $1,141
7. Nashville-Davidson–Murfreesboro–Franklin, TN
- Non-adjusted share change in wages (YoY): +8.3%
- Inflation-adjusted share change in wages (YoY): +1.5%
- Non-adjusted complete change in weekly wages (YoY): +$107
- Common weekly wages This fall 2021: $1,398
- Common weekly wages This fall 2020: $1,291
6. Austin-Spherical Rock-Georgetown, TX
- Non-adjusted share change in wages (YoY): +8.3%
- Inflation-adjusted share change in wages (YoY): +1.5%
- Non-adjusted complete change in weekly wages (YoY): +$126
- Common weekly wages This fall 2021: $1,635
- Common weekly wages This fall 2020: $1,509
5. Denver-Aurora-Lakewood, CO
- Non-adjusted share change in wages (YoY): +8.4%
- Inflation-adjusted share change in wages (YoY): +1.6%
- Non-adjusted complete change in weekly wages (YoY): +$127
- Common weekly wages This fall 2021: $1,639
- Common weekly wages This fall 2020: $1,512
4. San Jose-Sunnyvale-Santa Clara, CA
- Non-adjusted share change in wages (YoY): +8.8%
- Inflation-adjusted share change in wages (YoY): +2.0%
- Non-adjusted complete change in weekly wages (YoY): +$322
- Common weekly wages This fall 2021: $3,961
- Common weekly wages This fall 2020: $3,639
3. Tampa-St. Petersburg-Clearwater, FL
- Non-adjusted share change in wages (YoY): +9.0%
- Inflation-adjusted share change in wages (YoY): +2.2%
- Non-adjusted complete change in weekly wages (YoY): +$108
- Common weekly wages This fall 2021: $1,302
- Common weekly wages This fall 2020: $1,194
2. Raleigh-Cary, NC
- Non-adjusted share change in wages (YoY): +9.6%
- Inflation-adjusted share change in wages (YoY): +2.7%
- Non-adjusted complete change in weekly wages (YoY): +$123
- Common weekly wages This fall 2021: $1,405
- Common weekly wages This fall 2020: $1,282
1. Miami-Fort Lauderdale-Pompano Seaside, FL
- Non-adjusted share change in wages (YoY): +12.1%
- Inflation-adjusted share change in wages (YoY): +5.0%
- Non-adjusted complete change in weekly wages (YoY): +$156
- Common weekly wages This fall 2021: $1,446
- Common weekly wages This fall 2020: $1,290
Methodology
The info used on this evaluation is from the U.S. Bureau of Labor Statistics’ Quarterly Census of Employment and Wages. To find out the places the place pay is rising the quickest, researchers calculated the non-adjusted share change in wages from Quarter 4 of 2020 to Quarter 4 of 2021. Within the occasion of a tie, the situation with the higher non-adjusted complete change in weekly wages from Quarter 4 of 2020 to Quarter 4 of 2021 was ranked increased. Notice: Solely places with full knowledge accessible throughout this time interval have been thought of on this evaluation.
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