States Where Wages Increased The Most In The Last 5 Years

When it comes to identifying which states have experienced the largest growth in wages, we sourced the latest data from the Bureau of Labor Statistics’ (BLS) Occupational Employment Statistics (OES) for the mean annual wage for All Occupations. We analyzed the change in this average annual wage for the years from 2016 to 2021 (the latest year the BLS has occupational wage data available for) for each of the 50 states.

So, read on to find out which states have seen the biggest increase in average wages over the last five years.

States Where Wages Increased the Most Over the Last 5 Years

Looking over the states where wages increased the most, there are some loose geographic patterns. West Coast states fared quite well, with Washington state ranking No. 1 for the biggest growth in the average annual wage for All Occupations from 2016 to 2021. California came in at No. 3 and Oregon at No. 12. Hawaii, though not technically on the continental West Coast, ranked as the No. 2 states with the largest growth in wages over the last five years.

The Northeast, too, is well represented. Maine, Massachusetts, New Jersey, Rhode Island, and New York state all rank among the top 10 states where wages have risen the most. Meanwhile, the Mountain division states of Colorado and Arizona round out the top-10 list. Below is a list of the 10 states that experienced the greatest percentage growth in their mean annual wages for All Occupations from 2016 to 2021:

1. Washington 5-year growth in average annual wage: 23.17%
2. Hawaii 5-year growth in average annual wage: 20.90%
3. California 5-year growth in average annual wage: 20.53%
4. Maine 5-year growth in average annual wage: 20.48%
5. Massachusetts 5-year growth in average annual wage: 19.89%
6. New Jersey 5-year growth in average annual wage: 19.79%
7. Rhode Island 5-year growth in average annual wage: 19.65%
8. New York 5-year growth in average annual wage: 19.61%
9. Colorado 5-year growth in average annual wage: 19.33%
10. Arizona 5-year growth in average annual wage: 19.18%

It should be noted that most of this percentage growth was not all due to inflation. For instance, in Washington state, the average annual wage for All Occupations in 2016 was $55,810. When that is adjusted to 2021 inflation, it’s equivalent to $62,539. The actual mean annual wage in 2021 for All Occupations in Washington is $68,740. Below is a table that details the top 10 states, including each of their 2016 average annual wages adjusted to 2021 inflation: