The 6 States With the Fastest Pay Growth in 2025
Written by
Emily Fowler
Edited by
Zuri Anderson
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Paychecks are getting bigger in 2025, but not everywhere at the same pace. According to ADP®’s Pay Insights Report, the national median year-over-year pay increase for job stayers is 4.6% as of March. But several states are outpacing that baseline.
Drawing from ADP®’s latest monthly data, the fastest-rising wages this year show a clear trend: Some of the strongest pay growth is happening well outside the major metros.
Here are the standout states with the biggest pay bumps heading further into 2025, along with each state’s average annual salary in 2025, according to SoFi.
Idaho
- Annual pay change: 6.2%
- Average annual salary: $55,640
Idaho leads the nation with a 6.2% median pay increase as of March. That’s up from 6% year-over-year at the end of 2024. The state also had the second-largest percentage increase in employment between January 2024 and January 2025, according to the U.S. Bureau of Labor Statistics (BLS).
Wyoming
- Annual pay change: 6%
- Average annual salary: $57,928
Wages in Wyoming were up 6.5% at the end of 2024 and remain strong with a 6% year-on-year increase in March. The state’s unemployment level fell slightly to 3.4% between February and March, lower than the general U.S. unemployment rate of 4.2%.
Alaska
- Annual pay change: 5.6%
- Average annual salary: $66,130
Alaska’s pay growth was up 5.6% in March — the third-highest in the country. It also had the highest percentage change in employment of all the states between January 2024 and January 2025, at 2.8%, per the BLS.
Oregon
- Annual pay change: 5.5%
- Average annual salary: $66,706
Oregon continues to see pay growth in a relatively stable labor market, with annual pay up 5.5% year-over-year both in March and at the end of 2024.
Montana
- Annual pay change: 5.4%
- Average annual salary: $55,910
Montana posted 5.4% growth in March, dropping down from its year-over-year change of 6.2% in December 2024.
Nevada
- Annual pay change: 5.4%
- Average annual salary: $58,906
As well as seeing 5.4% wage growth, Nevada’s labor market is expanding, with employment increasing and unemployment rates decreasing. Â
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