Best and Worst Markets for Salary Growth

The downhill slant of the economy has many impending college graduates scared. Some even are taking refuge from the economic storm by staying in school to avoid the poor economic condition of our job market. Many students recognize that education acts as a shelter for the economy and are staying in as long as they can.

But, if you’ve followed recent salary trends, you’d see that over the past year, some cities have demonstrated growth in wages for degree-holding individuals of up to 15 percent since 2007, according to PayScale.com. They also found that salary reports are showing wages for college graduates rising an average of three percent in the past three years.

Another good sign: the national unemployment rate for college graduates stayed at a low 4.7 percent in May, while high-school graduates saw 15 percent unemployment, according to the Bureau of Labor Statistics.

If you’re willing to relocate for a new job, it is important to utilize cost of living calculators and compare salaries by city to figure out where would be the best fit. Cost of living comparisons by city are also very helpful in assisting you in making the right decision. A cost of living estimator will be able to tell you if your salary averages will be able to fully support you in your new city. Don’t forget, the highest paying cities may not be places you would ever want to live, so you must consider your personal preferences as well. Find a salary that can provide enough to spend and save (hopefully in a city you love)!

So, whether you recently graduated or you’re anticipating earning your degree, check out this salary advice from a PayScale.com blog article.

Here are the best and worst markets for salary growth:

Best Markets for Salary Growth

1. Honolulu, Hi. This Hawaiian city has a strong military presence and is home to major military facilities and two universities which employ more than 23,000. Hawaii’s 2007 median wage back was below the national average of $55,000, so potential employees may be able to take advantage of employers making up for it now, according to Al Lee, director of quantitative analysis at PayScale. ($55,800, +15%)

2. Allentown-Bethlehem-Easton, Penn.-NJ. Lee says this region is an active center for Healthcare services, one of the few industries that has kept growing right through the downturn. If you’re interested in getting into the booming Healthcare industry, enroll in a RN to BSN degree program to become a nurse or other Healthcare degree program today! ($58,700, +15%)

3. El Paso, Texas. “National defense is huge here,” says Lee, “and Healthcare is strong.” The area’s lower-than-average wage may have been ready for an upward swing, too. ($49,000, +14%)

4. San Francisco-Oakland-Fremont, Calif. According to the article, the Bay Area was a high-paying market to start with, notes Lee McPheters, director of the Economic Outlook Center at Arizona State University. Hiring highly-skilled workers away from local competitors requires a salary bump, and recruiting from across the country demands high pay to coax hires west. Job-seekers will find the region is strong in Healthcare, an industry where unemployment rates are low – 3.2 percent currently for hospital workers – and labor shortages tend to drive up wages. ($73,800, +14%)

5. Virginia Beach-Norfolk-Newport News, Va.-NC. Just like El Paso, this market has military bases as a major employer here, with well-paid jobs for officers, pilots, nuclear engineers, and intelligence analysts. ($51,900, +14%)

There are many websites that offer a salary comparison by city which can be a helpful tool. Compare income by city as a key indicator of the economic health of those particular locations. Reference median income by city to see what the residents of that city are making and to project what you’ll possibly be making. If you compare the average income by city, you’ll have a better understanding of the market you’ll be entering.

Looking at salaries by city is an important step in the decision process that should not be overlooked. Be sure to do your research so you know the lowest salary you could live on. You’ll most likely find the lowest salaries in cities with the least amount of people.  Check out the worst markets for salary growth below!

Worst Markets for Salary Growth

1. Harrisburg-Carlisle, Penn. The state capitol Harrisburg saw 800 layoffs last year due to budget cuts and more are planned. Mix that with decreasing manufacturing output and increased layoffs, and wages start to shrink. ($49,900, -4%)

2. Portland-Vancouver-Beaverton, Ore.-Wash. Blame it on slower computer sales for the depressing wages for tech professionals. Big area employers such as Intel scaled back last year and are just starting to recoup. ($57,100, -1%)

3. Springfield, Mass. There just are no strong drivers to bring wage growth, Lee says. Social workers were the top-paid professionals, PayScale’s research shows. ($49,700, -1%)

4. Youngstown-Warren-Boardman, Ohio-Penn. This market is rich with auto-industry related business (like automotive parts makers) and, “There’s still a ripple effect out there from the auto industry,” says Lee. ($44,200, -1%)

5. Detroit-Warren-Livonia, Mich. Predictable story here in this market. Slowed automotive sales have lead to You probably know the story here – slowed automotive sales have led to layoffs of trained workers such as engineers. ($59,500, -1%)

Note from article: “Source: All salary data is from PayScale.com. The salaries listed are median, annual salaries for full-time workers with 5-8 years of experience and include any bonuses, commissions or profit sharing. Growth rankings track three-year median pay trends from 2007-2010.”