What Influences the Average Wage in the US?
Wages in the United States are not just income received from a particular activity. The lifestyle of Americans and their social status depend on their levels. But in any case, the main thing is the presence of the work itself, whatever it may be.
In the US, even not a highly-skilled person can get a job, receive a decent salary, support a family, and easily get a real estate loan. Therefore, the loss of work and salaries leads to plentiful troubles. So, many Americans have to subsist on social welfare, giving up their usual life. Due to the protracted crisis in the economy that began in 2014, large companies have to cut budgets and lay off employees. And this fact influenced the amount of average salary in the United States.
The amount of salary in the US depends on many factors. The first is your work location since the same specialist in a large city will receive an income of about 50% more than in the provinces. According to the statistics, as of early 2021, the top cities with the highest wages included San Francisco, Portland, New York, Los Angeles, Boston, and San Jose. A lot also depends on the state. The highest salaries are in California, Illinois, Washington, Virginia, and New York. The lowest wages are paid in Mississippi, Idaho, Montana, Iowa, and South Dakota.
The level of education and work experience have always influenced the salary amount. The better these indicators, the higher the salary the applicant for a particular position can expect. Statistics also show that older workers, due to their experience, can usually expect higher payments than younger workers. Large companies, including state-owned ones, usually pay higher salaries than SMEs.
The minimum hourly wage also varies. In addition, nannies and nurses, small farm workers, animators in seasonal entertainment jobs, and federal investigators cannot qualify for the minimum federal wage.
In addition, in the first three months, a reduction in payment to 5.25 USD per hour for young employees under the age of twenty is allowed. But even after that, the rate of 5.85 USD per hour can be used. Moreover, each state can independently set the level of the minimum wage, both lower and higher than the federal one.
In the United States, the calculation of income by month is not accepted. As a rule, the yearly data is used for statistical purposes. The average figures are calculated based on hourly wages. Salary in 2020 compared to 2021 increased by 5%. The average hourly rate is approximately 18 USD.
Additionally, when determining the average rate, specialization, work experience, and acquired skills are taken into account. Bonus payments, company profits distributed among employees, and commissions are also added.
Overall, the average salary in the US has not stopped growing since 1950. The exception was the crisis of 2014 when it decreased by 3.5%. Hence, now, you know exactly what factors affect the amount of the average salary in the United States.
