Local Pay Reports: U.S. Median Pay Rises 3.2 Percent in January

Andrew Chamberlain

Andrew Chamberlain

Andrew Chamberlain, Author at Glassdoor US | Jan 31, 2017

The latest edition of the Glassdoor Local Pay Reports show U.S. median base pay growth accelerated slightly to 3.2 percent year over year in January to $51,360 per year. That’s an increase from the 2.9 percent revised pay growth recorded last month—a sign of continued strength in today’s robust labor market. Pay Gains by Metro Among metros, the fastest year-over-year growth in median base pay in January was in Chicago at 4.3 percent to $56,279. That’s a slight tick up from Chicago’s strong 4.0 percent pay growth last month. Among the five metros in our report, three enjoyed wage growth above the national average of 3.2 percent – Chicago, Los Angeles and San Francisco – while two metros experienced pay growth below the U.S. average: Houston and New York City. In Los Angeles, median base pay in January was up 3.8 percent from one year ago to $58,988 (up slightly from 3.4 percent last month). Similarly, median base pay in San Francisco was up 3.8 percent YOY in January, to $66,221 (largely unchanged from 3.7 percent last month). For the fourth month in a row, Houston had the slowest year-over-year pay growth among the metros we examined at 2.7 percent to $54,329 (up from 1.9 percent last month). Finally, median base pay growth in New York City slowed slightly in January, up 2.7 percent to $60,322 (down slightly from 2.9 percent last month). You can view the full January 2017 Glassdoor Local Pay Reports here. Highest and Lowest Paying Jobs One advantage of Glassdoor salary data compared to most government sources is that we’re able to show pay growth for real-world job titles that workers can easily relate to – rather than the hard-to-understand and often outdated occupational groups used by the Bureau of Labor Statistics. This helps job seekers understand what job titles are paying best today, helping them search for jobs smarter. In January, the nation’s highest median base pay was found among five key job titles in Glassdoor salary data: By contrast, the lowest U.S. median base pay in January was found in the following five job titles: Jobs with the Biggest Pay Raises and Largest Declines Jobs that are highest paying aren’t always where we see biggest growth. In January, here are the five jobs in the U.S. with the biggest percentage growth in base pay from one year ago: In addition to store manager, retail jobs like retail key holder and cashier are also seeing gains, which are a likely result from rising minimum wages across the country and more retail companies raising employees’ pay. Recruiters continue to see pay gains this month -- a sign that U.S. employers are increasing hiring efforts in the first part of 2017. The five jobs that saw biggest declines in pay in January compared to last year are: . In addition to Houston seeing slow pay growth, manufacturing jobs across the U.S. continued to see declines or stagnant growth in pay compared to last year, such as mechanical engineer (-0.9 percent to $71,756) and electrical engineer (1.6 percent to $76,723). One explanation is that weak job growth in manufacturing makes it hard for workers to bargain for higher wages. How Does it Work? Like the new tool Know Your Worth by Glassdoor, Local Pay Reports incorporate millions of salaries directly collected from U.S. workers by Glassdoor and apply a proprietary machine-learning algorithm to estimate trends in local pay. The Local Pay Reports estimate year-over-year growth in median base salaries by job title for more than 60 jobs across more than 15 job categories including education, technology, retail and more. The reports also estimate median base pay by industry and employer size, and provide a monthly trend of metro-level median base pay for each local market over the past four years. Our new Local Pay Reports fill an important gap in our knowledge about wage growth at the local level for specific jobs. Official BLS “Occupational Employment Statistics” are updated only once per year, and use broad occupational groupings that can be confusing for job seekers. Local Pay Reports are released monthly—using the latest data from Glassdoor—and show pay for actual job titles that are easy for non-economists to understand. Monthly Jobs Report Expectations The latest jobs report from the federal government is due out on Friday. This month, we expect to see 172,000 new jobs and an unemployment rate down to 4.6 percent in January. See our full analysis for more commentary and predictions here. To learn more or subscribe to the monthly email alerts, visit: https://www.glassdoor.com/research/. The Glassdoor Local Pay Reports can be found here: https://www.glassdoor.com/research/local-pay-reports/. Press inquiries: To speak with Dr. Andrew Chamberlain about this month’s report, email pr@glassdoor.com. Find our press release with executive quotes here. Follow him on Twitter: @adchamberlain.