According to the U.S. Bureau of Labor, the average annual salary in the United States in the fourth quarter of 2023 was $59,384. This represents a 5.4% increase compared to the same period in 2022, when the average American earned $56,316 per year. The average weekly salary reached $1,142, while the average American earned $4,949 per month in the fourth quarter of 2023. Although salaries have increased, wage growth has slowed – the increase in average earnings is smaller compared to the 7.3% rise between 2021 and 2022.
While this is an average, the numbers are predictably quite different when you break them down by demographics. The wage disparities between men and women, although they have decreased by 1% over the last 10 years, were reduced by only 0.7% between 2022 and 2023. This translates to an average male earning of $63,960, nearly $10,000 per year more than women, who earn $53,404.
Race is also a factor, with white men earning an average of $64,636. This is over $16,000 more than Hispanic or Latino men, who earn an average of $47,996.
With the annual inflation rate for 2023 in the U.S. at 3.4% for the 12 months ending in December 2023, up from the previous 3.1%, salaries are not keeping pace. In fact, a study conducted by MIT found that the average salary needed to live comfortably in the U.S. is $68,499 after taxes, nearly $10,000 more than what is currently earned.
Average Salary in the U.S. by Age
• The age group with the lowest average earnings is predictably those aged 16 to 24.
• Those earning the most are between 35 and 44 years old, earning 13.8% more than the national average.
• Average earnings begin to decline at age 45, and people aged 65 and older earn nearly 8% less than the national average.
Average Income in the U.S. by State
• Mississippi is the state with the lowest income, with an average annual income of $48,048, over $11,000 below the U.S. average.
• The state with the highest salaries is Massachusetts, with an average annual income of $86,840 in 2023 – over $27,000 above the national average.
• Missouri is closest to the U.S. average, with an annual income of $59,800, just $416 above the national average.
Average Salary in the U.S. by Occupation
• Cardiologists were the highest earners in the U.S. in 2022, with average salaries of $421,330 based on over 16,000 employed cardiologists.
• Hairdressers were the lowest earners, with an average annual salary of $27,870, based on over 7,000 employees.
Average Income in the U.S. by Race
• Analyzing average income by race in the U.S., the numbers show significant inequality.
• Hispanics and Latinos have the lowest salaries in the U.S., earning an average of $45,968 per year.
• The highest salaries are among Asians, with an annual average of $79,456. Asian men earned an average of $90,012.
Average Family Income in the U.S.
• The average family in the U.S. earned $74,755 in 2022.
• Racial disparity is prevalent, with Black or African American families earning less than all racial groups.
Income in the U.S. by Gender
• Wage disparities between men and women have decreased by only 1% since 2013.
• The average salary of women in the U.S. was over $10,000 less than that of men.
• The gap between the average salaries of men and women has decreased compared to 2022, but is higher than in 2021.
Source: USA Today