Wages and salaries have risen significantly throughout the United States since January 2021. Updated calculations by the JEC Democrats find that average U.S. wages and salaries grew by over $17,600 between January 2021 and July 2024, outpacing price growth during that period by nearly $4,500. It is clear that costs have risen due to pandemic disruptions and global conflicts, but incomes have also grown and at a faster rate.
Additionally, the Biden-Harris administration and Congressional Democrats like JEC Chairman Martin Heinrich are continuing to fight to lower food costs, and data for recent months show that grocery prices are stabilizing. These efforts—alongside those to reduce the cost of prescription drugs, make housing more affordable, crack down on junk fees, and invest in supply chains to help goods move faster—are just some of the ways the Biden-Harris administration and Congressional Democrats are working to further cut costs for families.
This income growth is the direct result of the massive employment recovery and strong wage growth that has occurred since the start of the Biden-Harris administration, with the economy adding nearly 16 million jobs between January 2021 and today. This growth has also come with notable wage increases for middle- and low-income Americans, which has helped narrow income inequality for the first time in decades.
Across the country, incomes also grew faster than prices through the end of 2023
This strong wage growth has been spread out across the country, with average wages and salaries growing faster than average prices in nearly every state. This coincided with strong state-by-state employment growth throughout this period, and shows how the strong economic growth spurred by Democrats’ investments in workers and families has been felt throughout the country. While the data below only go through the last quarter of 2023, the strong national-level income growth is a sign that wages and salaries have continued to grow at the state level.
Overall, these data show that income growth is putting money back into people’s pockets across the country, even after accounting for cost increases. Democrats have shown that they are up to the task of passing laws and enacting policies that can drive down costs while supporting workers and boosting wages.
