David Lerner Associates News

Paychecks on the Rise in America

Core Facts


Friday, July 12, 2019

Since 2009 saw the end of the Great Recession, a nearly decade-long economic expansion in America is now on the verge of becoming the longest in history, and unemployment is at an ultra-low 3.8%. 

The labor market is also turning out to be one of the best hiring seasons in recent years. Data shows that the rate of hiring college graduates in 2019 is up 11% from last year.  And after several years of economic growth, wages are finally starting to rise too.

Even though job growth saw slower expansion earlier this year, wages are continuing to rise as employers are on the hunt for top talent in today’s job market. Currently, the median base pay for full-time workers in the U.S. is $52,807 per year, according to Glassdoor’s Job Market Report. That’s up 1.4% from April 2018. 

In 2018, wages increased nearly $1 per hour across all industries, according to research, which analyzed payroll data from nearly 1 in 6 U.S. workers. Job switchers saw an average wage increase of 5.8%, or $1.90, while job stayers saw a 4.7% or $1.34. 

All this data paints a picture of a ripe job market with employers who are hiring and willing to pay well for qualified workers. That’s very good news for graduates with large college loans to pay off.

A survey of job markets and incomes in 5 major U.S. cities was performed by Glassdoor recently and the results showed some impressive growth in paychecks. It’s not surprising that San Francisco came in at number one, with the tech boom still alive and well in Silicon Valley. San Francisco has the fastest year-over-year pay growth of 2.6% and a median base pay of $72,030 per year. However, the site also saw a 2.9% decrease in job openings in the city. 

Cities like Los Angeles, New York, Seattle, Atlanta, and Washington, D.C. also saw pay increases and job opening decreases over the past year.

Coming in at 5th place, New York City saw a year-over-year growth of 1.9% and a median base pay of $63,507 per year. Compare that to the cost of living, and you start to get a sense of income versus expenditure.

In San Francisco and New York, the median rent is $4,500 and $2,817, respectively, according to real estate site Zillow. That’s compared to the median national rent price of $1,675 per month. [7] It’s certainly an interesting data point to help recent graduates evaluate where they should relocate to for opportunities on the rise, depending on their career choices.

 

 

IMPORTANT DISCLOSURES

Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law.

Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable-- we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC

 

 

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Founded in 1976, David Lerner Associates is a privately-held broker/dealer with headquarters in Syosset, New York and branch offices in Westport, CT; Boca Raton, FL; Lawrenceville, NJ; and White Plains, NY. For more information contact David Lerner Associates Call 516-921-4200 Visit our website: www.davidlerner.com

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Jake Mendlinger
Account Manager
Zimmerman/Edelson
516.829.8374 X 232
jmendlinger@zimmed.com

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