These are the US cities with higher wage growth than the national average
By Staff Writer
Cities such as Columbus (Ohio), San Francisco, Louisville (Ky), Virginia Beach (Va) are registering encouraging growth in wages of over five percent while other cities have only 2.1% growth.
According to the latest data released by US Labor Department, during the past one year ending with June, hourly wages grew more than five percent in Virginia Beach, San Francisco, Columbus, and Louisville.
However, US lawmakers and economists worry over the slow growth rate in wages for the rest of the country in the wake of recovery in the economy. If wages are not increasing, how can Americans benefit from the recovery, economists asked.
The US Central Bank the Federal Reserve set the target for wage growth at 3.5%. While some cities surpassed the target, some fell short miserably.
Another positive development revealed by the Labor Department's data is the drop in unemployment rate. The unemployment rate in some cities is less than the national average.
The unemployment rate below the national average was recorded in cities including Rochester, NY, and Louisville, Ky.
The new job creation resulted to higher demand for skilled professionals and this is pushing up the wages.
The wage growth in Las Vegas picked up from negative -1.3% to positive 3.9% during the past two years. The new employment being generated in the economy recovery is witnessing many Americans taking up the jobs.
The US economic data research firm Headlight Data prepared a data analysis of 53 metropolitan cities with over one million population in 2014. San Jose, California, metropolitan areas topped the list of high wage growth, whereas in 2015 June, Columbus, Ohio, San Francisco, Virginia Beach and Louisville topped the list.
The average salary was in the range of $65,000 to $104,300 per annum across several states with a population of over 10 million in the US.
The wage increase for next year is likely to be about three percent on an average. This will be on par with 2015 average pay rise and above the inflation rate of 0.1% in June. The inflation rate is 1.7% excluding the food and gas prices.
Many US corporates offer pay rise of three percent on an average. According to a survey done by Towers Watson, the top performers would get a pay increase of over four percent while average performers get in the range of 2-3%.