Understanding the Average Salary in the United States

22 of May, 2023

When it comes to salaries, one thing is certain: everyone wants a good one. No matter your career or industry, you want to know that your hard work and experience are reflected in a competitive paycheck. Of course, you want to make sure that the salary you’re aiming for is fair — and not too high or too low for the task at hand.

That’s why understanding the current going rate for any given occupation in the US can be vital. At Sesame, we’ve compiled comprehensive research on average salaries across industries and careers in the United States—just for you.

In this article, we’ll dive into average salaries from both macro and micro perspectives to help HR managers and business owners make better decisions about payroll management within their organizations.

The Overall Average Salary in the US

Are you curious about the average salary in the US? According to the Bureau of Labor Statistics, the median annual wage for all occupations was $39,810. That means half of all workers earned more than that amount, while the other half earned less.

But of course, it’s important to note that these figures vary depending on industry and occupation type. For example, those working in management occupations earned a median salary of $104,240 in 2019. On the other hand, those working in food preparation and serving related occupations had a median salary of just $23,840.

As you can see from this breakdown, there are many factors that can affect how much people make—and so it’s important to be mindful of them while considering salaries and wages for any positions you may be hiring for.

Average Salary by Industry: High-Paying Sectors

It’s safe to say that the US is home to various industries and career paths offering high salaries. Not surprisingly, many of these fall under the category of STEM (Science, Technology, Engineering and Math) jobs. According to the US Bureau of Labor Statistics, the average salary for a STEM job is $87,570.

This well above the median wage of around $39,000 for all occupations in the US. But STEM isn’t the only sector offering competitive benefits and salaries. Other high-paying sectors include finance ($83,000), management ($77,000), healthcare ($74,000) and business ($76,000).

With these areas alone commanding six-figure salaries nationwide it’s no wonder why so many people are considering career changes and gearing up for a job within one of these sectors.

Average Salary by Occupation: The Top 10 Highest Paying Jobs

You might already know the top 10 highest paying jobs in the US, but do you know what salaries each of them can bring in? Let’s take a look.

1. Anesthesiologist

Anesthesiologists are some of the highest paid professionals, bringing home an average measly salary of $270,000. Not too shabby!

2. Surgeon

Surgeons come in a close second, with an average salary of $253,000.

3. Oral and Maxillofacial Surgeons

These bone and jaw masters make an average of $242,400.

4. Orthodontist

For those who like to work with teeth more specifically, the average orthodontist salary is around $229,380.

5. Obstetrician and Gynecologist

If women’s health is your calling, you can expect to have an average income of around $216,760 as an OB/GYN physician.

Average Salary by State: Where You Can Earn the Most

Do you know how much the average salary is in the US? It’s important to know which states offer higher earning potential and which don’t. Here’s an interesting fact: the highest salaries aren’t always found in the most expensive cities or states. Let’s dive a bit deeper.

The information below will give you an idea of what you can expect to make in the five highest-earning states in the US, on average:

• Connecticut: $58,680
• Massachusetts: $58,180
• Washington: $54,630
• New Jersey: $53,800
• Illinois: $51,970

If you’re looking to make a good salary and live relatively cheaply, Texas could be the right fit for you – it has an average salary of around $50,650 and living costs are lower than many other states. Tennessee is also a great option with an average salary of around $45,000 and low living costs.

Regardless of where you live, Sesame makes sure that HR professionals have easy access to accurate salary data across different industries so they can make informed decisions about their team members’ salaries – giving employees and contractors peace of mind while boosting their confidence in their own career prospects.

Average Salary by Experience Level: How Pay Changes Over a Career

When it comes to your salary, how much experience makes a difference? It’s the age-old question — and the answer is…a lot.

Here’s what the data shows us about how an average salary changes with experience:

• Entry-level (0-3 years of experience): The average inbox for entry-level positions in 2019 was $52,822.
• Mid-level (3-7 years of experience): The mid-level salary bracket saw an increase of 8.2% to an average of $57,059.
• Senior level (7+ years of experience): Senior level earners reported an average salary of $76,922 — that’s a 35% increase from entry-level positions.

Pretty impressive, right? That means that with just 7 years of experience in a job field, you can expect to earn over 44% more than those just starting out.

Of course, salaries can vary wildly depending on specializations and individual employers but data from sources like the U.S. Bureau of Labor shows that there’s a clear correlation between experience levels and paychecks.

As HR managers or business owners using Sesame Software’s cloud HR software suite, you’ll be able to use analytics to better understand how tenure correlates with compensation and develop more effective pay structures for your employees across all levels and roles.

Using HR Software to Track and Analyze Salaries

Aside from understanding what the average salary is in the US, HR managers and business owners can use specialized software, like Sesame, to track salaries and other key metrics. By doing this, you can gain a better understanding of how your current salaries compare to national averages and make data-driven decisions about your benefits packages.

Key Benefits of HR Software

With an HR software such as Sesame, you have access to a range of features that can help you set competitive salaries and create transparent compensation practices:

• Collect data on employee salary figures
• Analyze trends across all positions
• Track performance metrics
• Make labor costs visible
• Optimize compensation plans
• And more!

By having granular insights into payroll and labor costs from an HR software like Sesame, you can make sure your salaries are aligned with national averages as well as industry standards. This helps ensure that your team is getting paid fairly for their work while also keeping your business profitable in the long run.