5 States That Have Seen Highest Salary Increases
Written by
Brooke Barley
Edited by
Laura Bogart
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Are you struggling to keep up with inflationary spending? If you feel like your income is in a constant struggle with your economic needs, one way to earn a bigger paycheck might be to move.
A recent study by 1 Click Marketing looked at every state in the U.S. and compared average wages from 2020 to the latest BLS data to determine the percentage increase in each state. Here’s where pay has gone up the most since then.
1. Florida
“It’s no surprise to see Florida on the list since, as of now, it’s the fourth-largest economy in the U.S. with a very strong job market and no state income tax,” explained Peter Duris, CEO and co-founder at Kickresume.
Florida saw a 20.37% salary increase. Residents saw an average increase from $50,020 to $60,210. Florida has seen steady population growth since the pandemic, including many remote workers. “Many of these workers, especially in sectors like finance, have brought their higher salaries with them, and Florida’s lower cost of living has made the state an attractive destination,” said Echo Wang, CEO and co-founder at EpicBooks.
2. Idaho
Workers in Idaho got an 18.89% increase in average wages, where salaries have gone from $46,800 to $55,640. Duris noted this could be due to Idaho getting into more industries than in the past. “While it’s traditionally known as an agricultural state, Idaho has grown into a science and tech hub over the years, with high-paying jobs in these fields likely driving the rising wages,” he elaborated.
3. Utah
Those living in Utah experienced an 18.74% increase in average wages. The average salary has risen from $51,430 to $61,070 — the highest salary in the top five. Duris attributed this to more high-paying industries moving to the state. “Utah’s economy is also transforming and becoming increasingly diverse, with industries like finance and IT leading the way in offering more and more high-paying jobs,” he said.
4. South Dakota
South Dakota employees saw an 18.39% increase in average wages. The state’s salaries have gone from $44,960 to $53,230.
Duris added that those earning minimum wage in South Dakota might see a bump soon, so the state’s income will increase even more. “In South Dakota, a state law ties minimum wage to the Consumer Price Index,” he pointed out. “So, workers earning the current minimum wage may expect a raise in January. This ensures, to a certain degree, a continuous yearly growth for the wages.”
5. Montana
Rounding out the top five, Montana saw a 18.30% increase in average wages. The state’s salaries rose from $47,270 to $55,920. Wang attributed this to a need for skilled workers in the state. “With expanding industries in agriculture and tourism, employers can’t find enough skilled workers, which drives wages up even more,” she said. “As the need for skilled workers grows and the competition gets tougher, companies offer better pay to attract the best people leading to these big salary boosts.”
Duris added that the state has been passing laws that support a growing labor force: “Montana’s Governor Greg Gianforte credits their pro-business, pro-jobs policies for the increase.”
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