SOURCE: Glassdoor

Glassdoor

November 01, 2016 08:30 ET

U.S. Wages Up 2.8% Year Over Year, New Glassdoor Local Pay Reports Reveal

Median base pay in San Francisco has grown 4.2% YOY, while pay in Los Angeles and New York grew 3.9%, Chicago wages grew 2.8% and Houston wages were largely flat, growing 1.6%

MILL VALLEY, CA--(Marketwired - Nov 1, 2016) - Worker pay in the U.S. has increased 2.8 percent in the past year to a median base pay of $51,404, according to the Glassdoor Local Pay Reports published by the Glassdoor Economic Research division. In its inaugural monthly compensation reporting, Glassdoor has released current pay data for nearly 40 industries and more than 60 job titles in the United States and five major metros: Chicago, Houston, Los Angeles, New York City and San Francisco. 

Wage growth in San Francisco was well above the national average, increasing 4.2 percent year over year to a median base pay of $65,927. Wages in Los Angeles and New York City grew 3.9 percent year over year to a median base pay of $58,827 and $60,365, respectively. During the same period, wages in Chicago rose 2.8 percent to a median base pay of $55,864 while wages in Houston grew just 1.6 percent to a median base pay of $54,462, largely driven by compression in the energy sector.

Healthcare jobs had some of the most significant wage growth nationwide over the past year, especially medical assistants (6.3 percent), registered nurses (3.4 percent) and pharmacy technicians (4.4 percent). For example, at the metro level in markets Glassdoor analyzed, median base pay for medical assistants grew most notably in Los Angeles 7.8 percent year over year in October to $38,160. Similarly, median base pay for pharmacy technicians grew by 5.8 percent year over year in Los Angeles ($36,987), and 5.3 percent in New York City ($29,770).

Despite rising demand for data scientists in numerous sectors, wages for this job declined 0.2 percent from October 2015 to $97,724 in the U.S. and remained relatively flat year over year across all five metros. For example, data scientist wages in Los Angeles grew 1.2 percent to a median base pay of $119,475 whereas Houston data scientist median base pay declined 2.0 percent from a year ago to $103,502. In tech-heavy San Francisco, data scientists earn $137,018 median base pay, but grew just 0.5 percent from a year ago.

Glassdoor's Chief Economist Dr. Andrew Chamberlain attributes this stagnation in data scientist compensation to the evolving definition of a data scientist -- while a data scientist remains a highly paid position, median compensation is being driven down because more employers are hiring more junior data scientists with less skills and prerequisites than were previously required for this role.

"The Glassdoor U.S. and Local Pay Reports data reveal modest wage growth nationally of 2.8 percent. Health care workers in certain key roles are seeing some of the largest increases in compensation, which isn't surprising given demand for many of these roles exceeds the amount of available experienced health care workers. While demand for data scientists is also high, there's been a shift in the core definition of what is required to be a data scientist. While in the past data scientists were generally very highly educated, many employers are now hiring data scientists and analysts at all levels, with less education and experience to help solve a range of business problems, across every industry," said Chamberlain.

Compensation for manufacturing and blue-collar jobs reveal a mixed bag. October 2016 wages for manufacturing jobs like production manager and manufacturing engineer grew by just 0.9 percent and 1.0 percent nationally, respectively. However, there are some blue-collar jobs with well-above average wage gains. For example, warehouse associates median base pay in the U.S. grew 7.7 percent to $44,920, while truck drivers median base pay grew 7.8 percent at the national level and 9.3 percent in Los Angeles.

For full local data and trends, the monthly Local Pay Reports can be found on the Glassdoor Economic Research site:

Introduction to Local Pay Reports

Leveraging the millions of salary reports collected from U.S. workers on Glassdoor, the Glassdoor Local Pay Reports leverages the same patent-pending technology and underlying data science behind its new Know Your Worth™ product that calculates the estimated market value of individuals to help them determine their worth in today's job market.1 Glassdoor Local Pay Reports takes this underlying work further, applying a proprietary machine learning algorithm to calculate the estimated median base pay and growth rates for more than 60 specific job titles and across more than 15 job categories including education, technology, retail and more. The local reports also estimate median base pay by industry and employer size, in addition to providing a snapshot of how wages have trended in each local market over the past four years. The Local Pay Reports are launching with a national report and for five major metros. Glassdoor expects to add more metros and data over time.

The Glassdoor Local Pay Reports provide important insight into what's happening around compensation in specific metropolitan job markets for specific jobs that is more current and more granular than many existing data sources, such as the Bureau of Labor Statistics Occupational Employment Statistics report, which is only updated once per year and uses broad occupational groupings.

"Government data lags behind the economy, and that's a problem when trying to understand what is going on with wages at a local level, right now. The Glassdoor Local Pay Reports give us near real-time data at the metro level so we can better assess exactly how wages in specific industries and job titles are moving in the local job market. These reports provide a pulse on wage growth for specific, real-world job titles that are easy to understand for ordinary job seekers. That helps give better context to employees to understand wage trends in their profession in their local job market and also provides another important data point for employers to benchmark against," added Chamberlain.

To learn more or subscribe to the monthly email alerts, visit: https://www.glassdoor.com/research/.

To read predictions from Dr. Andrew Chamberlain, Glassdoor's Chief Economist, about this month's BLS Employment Situation Report, visit: https://www.glassdoor.com/research/oct-2016-jobs-report. To speak with Dr. Chamberlain regarding the Glassdoor Local Pay Reports or his predictions for this month's jobs report: pr@glassdoor.com

Any individual can also keep tabs on their personal worth in their local job market through Know Your Worth by Glassdoor. Visit Glassdoor and/or download the Glassdoor Job Search apps for iPhone or Android. Know Your Worth also includes Salary Explorer™, a tool that allows people to explore how different titles, cities, companies and years of experience could impact their pay. For employers, see the Employer's Guide to Know Your Worth, with input from human resource executives at Glassdoor and other employers.

1 For more information about the accuracy of Glassdoor Local Pay Reports, visit: https://www.glassdoor.com/research/glassdoor-local-pay-reports-oct-2016

About Glassdoor
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