A new study finds that Arizona experienced the sixth-largest wage increase between 2020 and 2023, recording an 18.4% increase. This wasn’t too far behind the state with the largest percentage increase, Montana, which saw a 20.7% rise. According to the data, only four states saw wage increases that outpaced inflation.
Work management experts Asana analyzed Bureau of Labor Statistics data on hourly wages and inflation from 2020 to 2023 to see which areas had the biggest wage increases since 2020.
| The states with the largest increases in wages from 2020 to 2023 | |||||||
| Rank | State | 2020 median hourly wage | 2023 median hourly wage | Percentage increase from 2020 to 2023 | Median hourly wage increase | Wage increase needed to equal inflation (19.1%) | Real wage increase after inflation |
| 1. | Montana | $18.20 | $21.97 | 20.7% | $3.77 | $3.46 | +$0.31 |
| 2. | Florida | $18.07 | $21.67 | 19.9% | $3.60 | $3.43 | +$0.17 |
| 3. | Idaho | $17.79 | $21.27 | 19.6% | $3.48 | $3.38 | +$0.10 |
| 4. | Utah | $18.98 | $22.60 | 19.1% | $3.62 | $3.61 | +$0.01 |
| 5. | South Dakota | $17.70 | $21.00 | 18.6% | $3.30 | $3.36 | -$0.06 |
| 6. | Arizona | $19.35 | $22.92 | 18.4% | $3.57 | $3.68 | -$0.11 |
| 7. | Indiana | $18.56 | $21.86 | 17.8% | $3.30 | $3.53 | -$0.23 |
| 8. | Maine | $19.45 | $22.88 | 17.6% | $3.43 | $3.53 | -$0.26 |
| 9. | Georgia | $18.59 | $21.86 | 17.6% | $3.27 | $3.70 | -$0.27 |
| 10. | Kentucky | $17.90 | $21.02 | 17.4% | $3.12 | $3.40 | -$0.28 |
| U.S. Overall | $20.17 | $23.11 | 14.6% | $2.94 | $3.83 | -$0.89 | |
Montana experienced the largest wage increase in America, with wages increasing by 20.7% between 2020 and 2023, above the 19.1% inflation rate experienced in this time. In 2020, the median wage per hour stood at $18.20, increasing to $21.97 in 2023, 83 cents an hour above the national average increase of $2.94.
Montana’s median hourly wage in 2020 was worth $21.66 in 2023 dollars due to inflation. This means that Montanans were 31 cents an hour better off in real terms when compared with the $3.46 increase due to inflation. This is also $1.20 per hour better than the national average, which was an hourly wage decrease of 89 cents per hour in real terms.
Montana’s best-performing metro area and the eighth-best nationally was Missoula, with median hourly wages increasing by 23.2% from $17.49 in 2020 to $21.55 in 2023.
Florida had the second-best wage increase, with wages increasing 19.9% on average from $18.07 per hour in 2020 to $21.67 in 2023, 66 cents better per hour than America’s overall increase.
In real terms, Floridians were 17 cents an hour better off on average in 2023 than in 2020. This is because 2020’s median hourly wage was $21.50 in 2023 dollars.
Florida’s best-performing area between 2020 and 2023 was The Villages, recording a 20.6% average increase from $15.94 to $19.22 per hour. Miami was the best-performing large metro area in America, with a 20.2% increase in median hourly wages, from $18.60 in 2020 to $22.36 in 2023.
Idaho was the third-best performing state. Median hourly wages increased by 19.6% from $17.79 to $21.27, 54 cents better than the national average increase. Idaho’s performance outstripped inflation, with Idahoans 10 cents an hour better off in real terms in 2023.
Twin Falls was the best area for wage growth in Idaho and the tenth best nationally, which saw wages increase by 22.6% from $16 an hour to $19.61 an hour. In real terms, residents were 57 cents an hour better off in 2023.
Utah was the fourth-best state for wage growth and the final state to outperform inflation, with wages increasing by 19.1%. In 2020, average wages were $18.98 an hour and were $22.60 an hour in 2023. This $3.62 increase narrowly beat inflation, with Utahans 1 cent better off an hour in 2023 in real terms.
Logan, Utah-Idaho, was Utah’s best-performing metro area and America’s second-best overall. Wages increased 26.2% from $16.06 to $20.26, and Logan residents were, on average, $1.15 an hour better off in real terms in 2023.
South Dakota is fifth, with wages growing by 18.6% between 2020 and 2023. On average, wages were $17.70 per hour in 2020 and $21 per hour in 2023. This increase of $3.30 didn’t outstrip inflation, seeing South Dakotans 6 cents an hour worse off in real terms in 2023.
Sioux Falls was South Dakota’s best-performing metro area, recording a 16.4% increase in median hourly wages from 2020’s $18.77 to 2023’s $21.85.
The best-performing metro area in America was Brownsville-Harlingen, Texas. Wages increased by 30.6% from $12.35 in 2020 to $16.13 in 2023, which saw residents $1.43 better off in real terms in 2023.
Rhode Island was the worst-performing state for wage increases, with wages only increasing by 7.6% between 2020 and 2023, less than half of the 19.1% inflation rate. In 2020, median wages were $22.77 an hour, and in 2023, the median hourly wage was $24.50. This $1.73 increase is $1.21 worse than the national average increase of $2.94 and saw Rhode Islanders $2.42 worse off per hour in real terms in 2023.
commented on the findings,
“On paper, Americans are better off now than at the start of the pandemic. However, to many Americans, it doesn’t feel this way. Inflation outpaced the median wage increases in all but four states between 2020 and 2023, which has contributed to the current cost of living crisis,” said a spokesperson from Asana. “This large amount of inflation comes from the measures employed to mitigate the pandemic’s worst economic impacts, in addition to other factors such as supply shortages driving up prices and companies raising prices above the inflation rate to profit from rapid price rises.”
