Pa. wages growing faster than U.S. average, report shows

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Recent wage growth in Pennsylvania surpasses pre-pandemic levels and outpaces the national average, according to a new report by the Pennsylvania Workforce Development Association (PWDA). 

The report shows Pennsylvania wages rising faster than they did prior to the pandemic and at a rate exceeding the average across the U.S. 

“Pennsylvania’s wage growth is ahead of both its pre-pandemic levels and the national average,” Executive Director of the Pennsylvania Workforce Development Association Carrie Amann said in a statement. “In Pennsylvania, we’re seeing strong wage growth for many workers including lower-wage workers, indicating a period of opportunity as employers are willing to pay more to attract and retain talent.” 

“Pennsylvania’s Workforce Trends” is part of a series on the latest workforce development and labor market information impacting the state. According to a release, the series distills critical information for policymakers and stakeholders to develop responsive workforce development policy. 

Key findings in the report include the following: 

• Pennsylvania wage growth is exceeding pre-pandemic levels: Pennsylvania’s inflation-adjusted wages in 2023 are slightly exceeding their pre-pandemic levels. The Bureau of Labor Statistics reports a nearly 4% increase in average hourly earnings for non-supervisory employees from 2019 to mid-2024. 

• Pennsylvania wage growth is outpacing U.S.: Pennsylvania’s overall wage growth from 2019 to 2023 has been slightly faster than the U.S. average. Pennsylvania’s wages have grown across all income levels but trail the U.S.’s at lower income levels. In the 10th percentile, U.S. wages grew by 13.4%, compared to 9.2% in Pennsylvania, likely because of other states raising their minimum wages. In 2023, Pennsylvania’s median wage reached 104% of the national median wage, its highest level since 1997. 

• Wage growth by local workforce development areas (LWDAs): From the first quarter of 2019 to the fourth quarter of 2023, 15 of Pennsylvania’s 22 LWDAs saw growth in average weekly wages. Lancaster County led with a 6.3% increase, likely because of its low unemployment rate. Some suburban Philadelphia counties experienced wage declines during this period, including Montgomery County in the Lehigh Valley. 

“Our workforce development system now has a unique chance to help more Pennsylvanians share in this prosperity,” said Amann. 

Per a release, the PWDA serves as a clearinghouse for workforce development information statewide.