How much does the average American make? Understanding this can help employers offer competitive salaries and employees to negotiate better terms.
Calculating the average national earning isn’t so straightforward, however, especially since averages vary from state to state, and other factors like income source, experience level, education, and more contribute to earning potential.
Check out this assessment of national salaries to find out whether you fall above or below the par.
What’s the National Average Income?
What is the average income in the US?
According to the latest report released by BLS, the median weekly earnings of full-time employees in the US are estimated at $1,003. This amounts to $4,012 in an average month or $52,156 annually. The numbers are based on the earnings of 115.3 million American full-time workers and indicate a 0.7% YoY increase.
That being said, some sources report a lower average annual salary for the US. The average individual income of Americans for 2020 was $35,805 per year, a slight decrease from the year before.
(BLS) (Economic Research)
How much did the average American make in 2021 by the hour?
The latest estimates show that the seasonally adjusted hourly wage of all employees in the US is $11.19. The data highlights a decrease since February 2021, when it was estimated at $11.41. The summer months remained steady, with an hourly wage of about $11.23. In September, it peaked at $11.25 and reached its lowest point in October, at $11.19.
How much does the average American make a month?
The monthly salary in the US can significantly vary depending on employee educational level. For instance, the average monthly salary of employees with a doctorate degree is $7,532, while those with a professional degree make, on average, $7,444 per month. Those with a master’s degree earn $5,988 a month and Americans with a bachelor’s degree have a median monthly wage of $4,992. Finally, those with an associate’s degree bring in $3,548.
What’s the average salary by age?
The age group with the lowest salaries is teenagers (16-19 years old) who make $519 a week on average. Median earnings begin to increase with the early 20s age group, with full-time employees aged 20-24 earning around $650 per week.
Americans aged 25 to 34 bring in $935 a week, which amounts to $48,620 a year. Employees in the 35-44 age group earn $1,149 per week or $59,748 annually, and the average yearly income in the US for employees 45-54 years old is the highest among all age groups. This demographic earns $1,169 or $60,788 annually.
Millennials vs. Gen Z: Which generation has more substantial economic power?
Research reveals that Gen Z’s economic power is the fastest-growing across all generations. The generation’s income is expected to increase from $440 billion to $3.5 trillion by 2030, accounting for a quarter of the global income and surpassing millennials’ income by 2031.
The Gender Gap: How much does the average American make a year by gender?
According to the latest wage gap statistics, women in the US make $0.82 for every $1 a man makes, indicating a one-cent increase compared to the previous year.
Experts suggest that this slight improvement could be attributed to lower-paid women exiting the workforce due to family care or layoffs caused by economic turmoil from the pandemic. Women in the control group made $0.98 for every $1 a man earns, which means they still earn less than men doing the same job.
The average salary in America: How much do women make?
The median income of women in the US is estimated at $916 a week, which amounts to $3,664 a month, or $47,632 annually. Asian women in the workplace have the highest earning average, with $1,189 a week. Hispanic or Latino women make the least, earning $723 per week. White women earn $929 per week on average, while black women earn around $783 on a weekly basis.
Men’s salary: How much does the average American make?
With an average of $1,100 per week, men earn more than the national average. Asian men earn the most, with a median income of $1,414 a week, which amounts to $5,656 a month or $73,528 a year. Furthermore, white men weekly earn $1,134, whereas Hispanic or Latino men bring in just $826. Black men have the lowest weekly earnings, with a median of $816 per week.
What’s the US median household income by race or ethnic group?
The median household income in the US for all racial and ethnic groups is estimated at $67,521 per year. The median income is the largest for Asian households at $94,903. Caucasian households also had a high median income of $74,912. On the other hand, Black and Hispanic families fall below the median household income at $55,321 and $45,870 per year.
What are the average US salaries by profession?
Many of the highest-paid professions are in the healthcare industry. Anesthesiologists have a highly specialized career that tops the list of highest-earning professions, with a mean annual wage of $271,440.
Surgeons bring in $251,650, whereas obstetricians-gynecologists earn $239,120. Moreover, orthodontists make $237,990, oral and maxillofacial surgeons earn $234,990, and physicians in other specialties average around $218,850.
What’s the average income in the US by industry?
At $147,732, the average salary is the highest in the Information industry. Full-time employees managing companies and employees stand at $138,006, whereas those in finance and insurance make on average $124,106.
Full-time employees in utilities, mining, professional, scientific, and technical services make on average above $100,000 annually. On the other hand, employees in accommodation and food services have the lowest average wage of $31,121.
What’s the average salary in the US by occupational group?
Occupation and education level are immense indicators of average income in the United States. Management occupations have the highest average salary of $126,480. Legal occupations have an average wage of $112,320, whereas Americans in computer and mathematics occupations make $96,770. Healthcare support, food preparation, and serving-related occupations have the lowest average salaries, with $32,250 and $27,650, respectively.
What’s the average salary in the US per month for a software engineer?
The average salary for a software engineer in the US is $117,032. According to Indeed, software engineers make on average $4,500 in cash bonuses per year. The highest paying city in the US is San Francisco, with an annual average wage of $141,147. New York ranks second, with $124,178, and Dallas and Seattle follow behind with $112,837 and $112,390.
What percent of the US population makes over 100k?
The percentage of households earning more than $100,000 annually reached 33.6% in 2020. In recent years, the increase has been driven by economic growth and expanding demand for skilled workers, causing a rise of 3.1 percentage points. Even though this trend was disrupted by the economic crisis caused by COVID-19, experts predict that it won’t eliminate growth for the period as a whole.
Was 75k a good salary in 2021?
According to a study conducted by Princeton University, $75,000 is the income threshold at which the happiness of Americans isn’t fueled by earning more money. Undoubtedly, $75,000 looks reasonable considering it’s more than 30% of the national median income.
Defining a good salary largely depends on the place of living. For example, in some states, the average salary falls short of what’s needed to live comfortably, and even Americans making $75,000 might need to make some budget cuts.
How much does the average American make in a lifetime?
According to some estimates, the average American will earn $3 million in their lifetime. The sum, however, depends greatly on job title, education, race, gender, location, and other factors. For example, women will earn between $1 million and $1.5 million less than their male counterparts. Having a bachelor’s degree, however, can add about $250,000 to $500,000 to the total sum.
(Pocket Your Dollars)
What is a good average salary in the US?
The median wage to cover all the necessities in the US is $67,690. At $58,321, Mississippi has the lowest annual salary, whereas Hawaii has the highest, with $136,437. According to these numbers, living paycheck to paycheck is common in the life of Americans, even moreso, since after the coronavirus outbreak.
What salaries are in the top 10 percent for income by state?
There’s always a gap between the median wage and the top 10% of earners. The size of this gap varies depending on the state, however. For example, the New York median income is $72,108, whereas the top 10% make $291,906.
Similarly, in Washington, you’ll need to earn about four times the median income to reach the top 10%, who make $262,118. In Connecticut, the average salary of the top 10% earners is $306,153, and in New Jersey, it is $305,190.
(Go Banking Rates)
Which state has the highest average salary in the US?
According to expert analysis, the states with the highest earnings have an average salary of $98,000. New Jersey has the highest average income of $114,691. Connecticut and Massachusetts follow with $113,031 and $111,498, respectively. Other states with the highest average incomes are Washington, Virginia, New York, California, New Hampshire, Hawaii, and Maryland. In comparison, Mississippi reported the lowest average salary, with $62,835.
(World Population Review)
What salary is upper class?
The upper class consists of adults whose household income is more than double the national median after being adjusted for household size. For example, to be considered an upper class, one person should earn a minimum of $78,281. For a household of five, the minimum amount needed to be regarded as upper class is $175,041. According to research, nearly 20% of Americans are upper class.
How many Americans are part of the richest 1% of the world’s population?
Data based on the average US salary reveals that there are 20,914 Americans who qualify as part of the world’s richest. The number is greater than for any other country on the planet, with China coming in at a far second, with 4,887 one-percenters. To rank in the top 1% of earners in America, you’d have to make, on average, $737,697 a year.
(Credit Suisse, Investopedia)
What is the average American income for the middle class?
Middle-class households are considered those with an annual income that is two-thirds to double the national median income. According to recent estimates, middle-class income ranges from $50,641 to $135,042 in the United States. That said, the state and metropolitan area people are living in, as well as the size of the household, plays a major role in determining what’s considered middle-class.
What is a good average salary in the US?
A good salary is considered the salary that is above the national average of $52,156 a year and is enough for people to cover living expenses, including food, utilities, transportation expenses, apparel, and credit payments, while leaving opportunities for occasional purchases and savings.
That said, a good salary will vary depending on where people live. For example, a good wage in an urban region can range from $70,000 to $150,000, whereas in rural areas can be between $50,000 and $80,000.
The Takeaway: How Much Does the Average American Make?
Currently, there are 115.3 million full-time workers in America, some of whom are compensated with an annual salary, while others earn hourly wages. Looking at average American earnings is a complicated topic as there are significant variations in pay relative to education level, job type, experience, and social-economic factors.
Knowing the national average and median earnings can give you a good idea of what to expect in certain locations. Additionally, it can help employers offer competitive salaries and increase employee retention. So, how much does the average American make? The answer is around $35,000, but studies show it would have to double to increase the prosperity and happiness of the population.