Average Hourly Earnings by State: 2026 Rankings and Trends

Average hourly earnings are one of the most closely watched indicators of state economic health. In 2026, the latest official data from the U.S. Bureau of Labor Statistics show that average hourly earnings for private nonfarm employees ranged from under $30 in some Southern states to more than $50 in the District of Columbia, with wide regional gaps driven by industry mix, cost of living, and policy choices.

Key Numbers

• Highest average hourly wage (2025): District of Columbia — $53.37
• Highest state average hourly wage (2025): Massachusetts — $41.16
• Lowest among BLS-listed states (2025): Arkansas — $29.78
• Largest year-over-year increase (BLS-listed, 2024–2025): Arizona — 4.9%
• Highest average weekly earnings (BLS-listed, 2025): California — $1,371.82
• Average weekly hours in California (2025): 33.2 hours
• Average weekly hours in Alabama (2025): 35.4 hours

Explanation

Average hourly earnings measure what private-sector employers pay per hour worked, before taxes and other deductions. The Bureau of Labor Statistics calculates this figure by dividing total gross earnings by total hours paid for all employees on private nonfarm payrolls. It includes overtime, bonuses, and commissions, but excludes benefits and employer payroll taxes.

State averages differ because each state has a unique mix of industries. States with large technology, finance, and professional services sectors—such as California, New York, and Massachusetts—tend to report higher average hourly earnings. States with more jobs in retail, hospitality, and agriculture often report lower averages. Cost of living also plays a role: employers in expensive metro areas must pay more to attract workers.

In 2025, the most recent year for which BLS annual averages are available, average hourly earnings ranged from $29.78 in Arkansas to $41.32 in California among the states shown in the BLS state hours and earnings table. The District of Columbia, which is not a state but is included in many wage comparisons, had an even higher average of $53.37, according to World Population Review data.

Definition

Average hourly earnings (AHE) is a measure of the average wage rate paid to employees in the private nonfarm sector. It is calculated as total gross earnings divided by total hours paid. The measure includes overtime pay, shift differentials, and nonproduction bonuses, but excludes irregular bonuses, retroactive pay, and employer contributions to benefits.

The BLS publishes AHE data monthly through the Current Employment Statistics (CES) program and annually by state. The state-level figures cover all employees on private nonfarm payrolls, which includes goods-producing and service-providing industries but excludes government workers, agricultural workers, and the self-employed.

State Comparison

Wage levels follow a clear regional pattern. The Northeast and West Coast generally have the highest average hourly earnings, while the South and parts of the Midwest report lower averages. This pattern reflects both the concentration of high-paying industries and differences in the cost of living.

Note: Delaware weekly earnings were not available in the truncated source table.

Ranking Table

The following table ranks the top 10 states and the District of Columbia by average hourly wage in 2025, based on World Population Review data derived from annual income figures.

These figures are broadly consistent with BLS data, though small differences arise from methodology and the inclusion of all workers rather than only private nonfarm employees.

Year-over-Year Change

Average hourly earnings rose in every state shown in the BLS annual table between 2024 and 2025. The pace of growth varied from about 3.5% in Colorado and Connecticut to nearly 4.9% in Arizona.

These increases reflect a combination of tight labor markets, minimum wage hikes in several states, and inflation-driven wage adjustments.

Factors Behind the Trend

Several forces shape state-level average hourly earnings:

• Industry mix: States with large technology, finance, and professional services sectors tend to have higher averages. For example, California’s tech and entertainment industries push its average above $41 per hour.
• Cost of living: High-cost states such as New York, Massachusetts, and California must pay higher wages to attract and retain workers.
• Minimum wage policy: As of 2026, state minimum wages range from $7.25 to $17.95 per hour, with many states and cities adjusting rates annually. Higher minimum wages lift the bottom of the wage distribution.
• Unionization: States with higher union density, particularly in the Northeast and West, often have stronger wage growth and higher average earnings.
• Energy and resource industries: Alaska’s relatively high average hourly earnings ($37.92) reflect the state’s oil, gas, and mining sectors, which pay premium wages.

Methodology

The Bureau of Labor Statistics produces state-level average hourly earnings from the Current Employment Statistics (CES) survey, which samples about 119,000 businesses and government agencies representing roughly 629,000 worksites. For each state, BLS calculates average hourly earnings by dividing total gross earnings by total hours paid for all employees on private nonfarm payrolls.

The annual averages shown here are the mean of the 12 monthly figures for the calendar year. The data cover full-time and part-time workers, but exclude agricultural workers, the self-employed, unpaid family workers, and private household employees. Government workers are also excluded from the private nonfarm series.

Limitations of the Data

State average hourly earnings are useful for broad comparisons, but they have important limitations:

• Not adjusted for cost of living: A $40 average hourly wage in California may buy less than a $30 wage in Arkansas after housing and other costs are considered.
• Industry mix can skew averages: A state with many high-paying tech jobs may have a high average even if many workers in other sectors earn much less.
• Excludes benefits: The measure does not include health insurance, retirement contributions, or other non-wage compensation, which can vary significantly by employer and state.
• State averages hide local variation: Within a state, wages in major metro areas are often far higher than in rural counties.

‘Average hourly earnings should be interpreted alongside cost-of-living indexes and industry employment data to get a full picture of worker purchasing power.’

Why It Matters

Average hourly earnings affect household budgets, consumer spending, and state tax revenues. Higher wages can improve living standards but may also signal a higher cost of living. Policymakers, businesses, and workers use these figures to negotiate pay, set minimum wage policy, and evaluate regional economic competitiveness.

For workers considering relocation, comparing average hourly earnings by state is a starting point, but it should be paired with data on housing costs, taxes, and job availability. For employers, state wage data help benchmark compensation and understand labor market conditions.

Historical Data

The BLS annual averages show steady wage growth across states from 2023 to 2025. The table below highlights the trend for selected states.

Over the two-year period, every listed state saw average hourly earnings rise by at least $1.50, with California and Colorado posting gains of more than $3 per hour.

Source & Data Date

Primary data for this article come from the U.S. Bureau of Labor Statistics, State Employment and Unemployment and the Current Employment Statistics annual averages for 2023, 2024, and 2025, accessed September 10, 2026. Supplementary state wage rankings and 2026 minimum wage context are drawn from World Population Review and Gerald Financial Research Team. All figures are the most recent official or reputable estimates available as of the retrieval date.