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 nearly $16,700 between January 2021 and April 2024, outpacing price growth during that period by nearly $3,800. In addition, new calculations show that wage growth outpaced price growth in nearly every state through the end of 2023. It is clear that while costs have risen due to pandemic disruptions and global conflicts, incomes have grown faster.
Additionally, the Biden 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 now falling. These efforts—alongside those to reduce the cost of prescription drugs, crack down on junk fees, and invest in supply chains to help goods move faster—are just some of the ways the Biden 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 President Biden took office, with the economy adding over 15 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 most recent data at the state level is for the last quarter of 2023, the strong national-level income growth through April shown above is a good sign that wages and salaries have also continued to grow at the state level.
|
Average Wages and Salaries Outpaced Price Growth Across the Country From Early 2021 Through the End of 2023 |
|||
| State Name | Increase in Wages and Salaries |
Increase in Prices |
Difference Between Wage Growth and Price Growth |
| Alabama | $11,549 | $9,482 | $2,067 |
| Alaska | $17,672 | $12,772 | $4,900 |
| Arizona | $13,381 | $12,833 | $548 |
| Arkansas | $11,324 | $8,453 | $2,871 |
| California | $18,888 | $12,828 | $6,060 |
| Colorado | $20,020 | $14,437 | $5,583 |
| Connecticut | $15,122 | $10,919 | $4,203 |
| Delaware | $13,075 | $12,424 | $651 |
| District of Columbia | $44,838 | $16,942 | $27,896 |
| Florida | $16,550 | $12,813 | $3,738 |
| Georgia | $15,203 | $11,248 | $3,955 |
| Hawaii | $17,542 | $12,403 | $5,139 |
| Idaho | $12,303 | $11,754 | $549 |
| Illinois | $17,842 | $11,382 | $6,460 |
| Indiana | $13,476 | $9,929 | $3,547 |
| Iowa | $12,258 | $10,046 | $2,212 |
| Kansas | $13,572 | $10,887 | $2,685 |
| Kentucky | $13,754 | $9,403 | $4,351 |
| Louisiana | $12,930 | $9,510 | $3,420 |
| Maine | $12,790 | $8,805 | $3,984 |
| Maryland | $14,989 | $12,654 | $2,336 |
| Massachusetts | $17,543 | $11,496 | $6,047 |
| Michigan | $13,572 | $10,268 | $3,304 |
| Minnesota | $15,121 | $12,395 | $2,726 |
| Mississippi | $8,602 | $8,833 | -$231 |
| Missouri | $13,682 | $10,993 | $2,689 |
| Montana | $13,175 | $12,161 | $1,014 |
| Nebraska | $13,978 | $11,239 | $2,738 |
| Nevada | $21,439 | $12,802 | $8,637 |
| New Hampshire | $15,827 | $10,869 | $4,959 |
| New Jersey | $17,107 | $11,177 | $5,931 |
| New Mexico | $13,813 | $11,085 | $2,728 |
| New York | $24,301 | $10,980 | $13,320 |
| North Carolina | $15,362 | $10,643 | $4,718 |
| North Dakota | $18,712 | $11,335 | $7,377 |
| Ohio | $13,363 | $9,790 | $3,573 |
| Oklahoma | $11,462 | $8,791 | $2,671 |
| Oregon | $15,510 | $9,758 | $5,753 |
| Pennsylvania | $14,815 | $9,406 | $5,409 |
| Rhode Island | $14,970 | $9,386 | $5,584 |
| South Carolina | $12,094 | $10,342 | $1,752 |
| South Dakota | $11,251 | $11,317 | -$66 |
| Tennessee | $13,717 | $9,941 | $3,775 |
| Texas | $17,229 | $11,072 | $6,158 |
| Utah | $16,037 | $14,011 | $2,026 |
| Vermont | $13,447 | $9,285 | $4,162 |
| Virginia | $17,238 | $12,111 | $5,127 |
| Washington | $22,114 | $10,937 | $11,177 |
| West Virginia | $10,283 | $9,299 | $984 |
| Wisconsin | $13,830 | $9,969 | $3,861 |
| Wyoming | $15,022 | $12,504 | $2,518 |
| Source: Table SQINC4 State quarterly personal income, population (BEA), Consumer Units (BLS), JEC Republican Staff Note: Calculations are done comparing Q4 2020 to Q4 2023 values for wages and salaries by state. Consumer units are allocated at the state level using BEA data on population. Consumer units for 2021 come from BLS, and the 2023 value is an annual extrapolation for 2023 using the observed growth rate from 2021 to 2022 applied to the 2022 value. |
|||
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.
