SANTA MONICA, CA – Californians have seen the second-highest increase in average annual wages since 2010, according to a new report from Approve.com.
The national median annual salary was $ 43,265 in 2010 and rose to $ 58,494 in 2020, an increase of 35 percent or an increase of $ 15,228. Wage growth exceeded inflation rates in the US, but this was not the case in all states.
Washington saw the largest increase of any state over the 10-year period. Evergreen state saw the largest wage increase, 58.28 percent. In 2010, Washington’s average annual wage was only the 10th highest of any state. And in 2020, wages were the fourth highest in the country at $ 76,791.
Californian wages have increased 49.16 percent since 2010. This is almost 1 less than in Washington, but still around 14 percent higher than the national average.
In 2020, the median annual wage in the Golden State was $ 79,480, compared to $ 53,285 in 2010.
Wyoming saw the smallest increase, as wages only rose 21.5 percent. That is around 14 percent less than the national average. Louisiana ranked behind, where wages rose 25.33 percent. Although wages in Louisiana were lower than Wyoming in 2010, they rose slightly through 2020.
Mississippi also saw a slower rise, falling back to the lowest-income state by 2020.
States with the currently highest wages
Massachusetts is currently the state with the highest average annual wages. The average of $ 83,738 across the Bay State is $ 25,244 above the national average and $ 40,516 above the Mississippi average.
New York ranks second behind Massachusetts, with Empire State residents making an average of $ 600 less than Massachusetts residents.
“The motto of New York is the Latin word Excelsior, which means always upwards, but on the contrary, the average annual wages in the Empire State are growing more slowly than elsewhere and they no longer have the highest wages in the country as in 2010,” the report said.
California is the state with the third highest average annual wage, rising from the fifth highest in 2010. Although California is more than $ 4,000 lower than Massachusetts, California has average wages $ 21,000 above the national average.
What could happen by 2030?
Massachusetts, New York and California are currently the top three highest income states, but that is set to change by 2030 if wage developments continue over the next decade, the report said.
The median annual wage nationwide is estimated at $ 79,266 through 2030.
Washington could jump from fourth to first place and is expected to be the highest-income state by 2030, with an average annual wage of $ 121,545. Massachusetts is well on its way to falling back to second place when growth rates reflect the past 10 years. Wages will average $ 121,379, which is still well above the nationwide average of over $ 40,000. California is expected to maintain its position where the average salary will reach $ 118,553.
See where other states have been placed and read the full report from Approve.com.