See the U.S. cities where worker pay is rising fastest
Although worker wages have risen modestly this year, pay is increasing much faster in some metro areas than in others, labor data shows.
The U.S. exhibits significant variation in worker pay across cities, with some areas experiencing faster wage growth than others. Nationally, workers saw a 4.7% increase in gross pay and a 3.2% rise in base pay from August 2022 to August 2023, according to ADP Pay Insights. However, certain urban areas have seen more substantial wage increases, even surpassing inflation rates.
These metros typically share common factors such as robust job growth, labor shortages, and higher employee turnover rates, as indicated by ADP data.
Wage growth is also often more pronounced in cities with a higher concentration of manufacturing and financial services firms. ADP's lead data scientist, Liv Wang, explained that labor supply shortages, resulting from an aging workforce or skill mismatches, can drive up wages. Despite nationwide wage growth slowing to an annual rate of 3.1% in August, the lowest since May 2021, strong payroll gains exceeded economists' forecasts, as reported by the Department of Labor.
The top 10 metro areas with the fastest wage growth in August and the top 10 industries with the fastest wage growth are detailed below, based on ADP's analysis.
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