The median salary is the middle point of the income distribution, meaning that half of the workers earn more than this amount and half earn less. It is a useful indicator of the overall economic well-being of a population, as it reflects the income level of the typical worker.
Median Salary in the US in 2023
In this article, we will explore the Median Salary in the US in 2023, how it compares to previous years, what factors influence it, and what occupations and states have the highest and lowest median salaries. We will also answer some of the most frequently asked questions about median salary in the US.
How much is the median salary in the US in 2023?
According to the latest data from the Bureau of Labor Statistics, the median weekly earnings of full-time wage and salary workers in the US were $1,100 in the second quarter of 2023. This translates to an annual median salary of $57,200.
This was 5.7% higher than a year earlier, compared with a gain of 1.9% in the Consumer Price Index for All Urban Consumers (CPI-U) over the same period. This means that the real median salary (adjusted for inflation) increased by 3.8% year-over-year.
What factors affect the median salary in the US?
The median salary in the US is influenced by various factors, such as:
- Education: Higher levels of education tend to be associated with higher earnings. According to the Bureau of Labor Statistics, workers with a bachelor’s degree or higher had a median weekly earnings of $1,545 in 2023, while those with less than a high school diploma had a median weekly earnings of $652.
- Gender: There is a persistent gender pay gap in the US, meaning that women earn less than men on average. According to the Bureau of Labor Statistics. women had median weekly earnings of $993 in 2023, or 84.1% of the $1,181 median for men.
- Age: Earnings tend to increase with age, as workers gain more experience and skills. According to IncomeByZipcode.com, the median annual income by age group in 2023 was as follows:
| Age group | Median annual income |
|---|---|
| 16-19 | $17,600 |
| 20-24 | $30,400 |
| 25-34 | $49,600 |
| 35-44 | $61,200 |
| 45-54 | $64,000 |
| 55-64 | $60,800 |
| 65+ | $45,600 |
- Occupation: Different occupations have different levels of demand, skill requirements, and compensation. According to Forbes some of the highest-paying occupations in 2023 were:
| Occupation | Median annual salary |
|---|---|
| Anesthesiologist | $271,440 |
| Surgeon | $252,040 |
| Oral and maxillofacial surgeon | $237,570 |
| Psychiatrist | $220,430 |
| Chief executive | $193,850 |
Some of the lowest-paying occupations in 2023 were:
| Occupation | Median annual salary |
|---|---|
| Fast food cook | $23,400 |
| Dishwasher | $24,530 |
| Cashier | $24,590 |
| Waiter or waitress | $25,930 |
| Childcare worker | $26,790 |
- State: Different states have different costs of living, tax rates, minimum wages, and economic opportunities. According to Forbes Advisor, some of the states with the highest average salaries in 2023 were:
| State | Average annual salary |
|---|---|
| Massachusetts | $76,600 |
| New York | $74,870 |
| California | $73,220 |
Some of the states with the lowest average salaries in 2023 were:
| State | Average annual salary |
|---|---|
| Mississippi | $45,180 |
| Arkansas | $48,570 |
| West Virginia | $49,170 |
Conclusion
The median salary in the US in 2023 was $57,200, which was a 5.7% increase from the previous year. The median salary was affected by various factors, such as education, gender, age, occupation, and state. Some of the highest-paying occupations and states were in the fields of health care, management, and technology, while some of the lowest-paying ones were in the fields of food service, personal care, and hospitality.
The median salary is a useful measure of the economic well-being of a population, but it does not capture the full picture of income inequality, poverty, and living standards. Therefore, it is important to look at other indicators, such as the mean salary, the median household income, the poverty rate, and the Gini coefficient, to get a more comprehensive understanding of the income distribution and its implications for society.
Most Asked Questions and Answers about Median Salary in the US
Q: What is the difference between median salary and mean salary?
A: The median salary is the middle point of the income distribution, meaning that half of the workers earn more than this amount and half earn less. The mean salary is the average of all the workers’ earnings, meaning that it is calculated by adding up all the earnings and dividing by the number of workers. The mean salary is usually higher than the median salary, because it is influenced by outliers or extreme values at the high end of the distribution.
Q: What is the difference between median salary and median household income?
A: The median salary is the income of an individual worker, while the median household income is the income of a household, which may consist of more than one worker or other sources of income, such as pensions, dividends, or welfare. The median household income is usually higher than the median salary, because it reflects the combined earnings of all the members of a household.
Q: What is the difference between median salary and poverty rate?
A: The poverty rate is the percentage of people whose income falls below a certain threshold, which varies by household size and composition. The poverty threshold is determined by the US Census Bureau and is updated annually to account for inflation. The poverty rate is a measure of how many people are living in poverty, while the median salary is a measure of how much the typical worker earns.
Q: What is the difference between median salary and Gini coefficient?
A: The Gini coefficient is a measure of income inequality, which ranges from 0 to 1. A Gini coefficient of 0 means that everyone has the same income, while a Gini coefficient of 1 means that one person has all the income. The Gini coefficient is calculated by comparing the cumulative shares of income received by different groups of the population. The Gini coefficient is a measure of how unevenly the income is distributed, while the median salary is a measure of how much the middle-income group earns.
Q: How does the median salary in the US compare to other countries?
A: According to data from the Organisation for Economic Co-operation and Development (OECD), the median annual earnings for full-time workers in 2020 (the latest available year) were as follows for some selected countries:
| Country | Median annual earnings |
|---|---|
| Luxembourg | $68,268 |
| Switzerland | $62,283 |
| United States | $54,446 |
| Germany | $49,808 |
| United Kingdom | $41,030 |
| Japan | $40,247 |
| China | $12,472 |
| India | $3,228 |
Note that these figures are based on purchasing power parity (PPP), which adjusts for differences in price levels across countries.
Q: How does the median salary in the US vary by race and ethnicity?
A: According to data from IncomeByZipcode.com, the median annual income by race and ethnicity in 2023 was as follows:
| Race and ethnicity | Median annual income |
|---|---|
| Asian | $87,200 |
| White | $66,400 |
| Hispanic or Latino | $52,000 |
| Black or African American | $41,600 |
These figures show that there are significant disparities in income by race and ethnicity in the US.
Q: How does the median salary in the US vary by industry?
A: According to data from ZipRecruiter, some of the industries with the highest average salaries in 2023 were:
| Industry | Average annual salary |
|---|---|
| Information Technology | $91,440 |
| Engineering | $86,640 |
| Finance | $79,520 |
| Health Care | $78,720 |
Some of the industries with the lowest average salaries in 2023 were:
| Industry | Average annual salary |
|---|---|
| Retail | $31,200 |
| Education | $34,560 |
| Hospitality | $36,960 |
These figures show that different industries have different levels of demand and skill requirements that affect their compensation.
Q: How does the median salary in the US vary by education level?
A: According to data from ZipRecruiter, some of the education levels with the highest average salaries in 2023 were:
| Education level | Average annual salary |
|---|---|
| Doctorate | $102,240 |
| Master’s | $84,960 |
Q: How does the median salary in the US vary by education level?
A: According to data from ZipRecruiter, some of the education levels with the highest average salaries in 2023 were:
| Education level | Average annual salary |
|---|---|
| Doctorate | $102,240 |
| Master’s | $84,960 |
| Bachelor’s | $66,720 |
Some of the education levels with the lowest average salaries in 2023 were:
| Education level | Average annual salary |
|---|---|
| High school diploma or less | $36,480 |
| Some college or associate’s | $48,960 |
These figures show that higher levels of education tend to be associated with higher earnings in the US.
Q: How does the median salary in the US vary by gender?
A: According to data from ZipRecruiter, some of the gender groups with the highest average salaries in 2023 were:
| Gender group | Average annual salary |
|---|---|
| Male | $67,200 |
| Female | $55,680 |
These figures show that there is a persistent gender pay gap in the US, meaning that men earn more than women on average.
Q: How does the median salary in the US vary by age?
A: According to data from ZipRecruiter, some of the age groups with the highest average salaries in 2023 were:
| Age group | Average annual salary |
|---|---|
| 45-54 | $68,640 |
| 35-44 | $65,280 |
| 55-64 | $64,800 |
Some of the age groups with the lowest average salaries in 2023 were:
| Age group | Average annual salary |
|---|---|
| 16-19 | $20,160 |
| 20-24 | $34,560 |
| 25-34 | $51,840 |
These figures show that earnings tend to increase with age, as workers gain more experience and skills in the US.