Main Article: U.S. Labor Market
Household savings
Main article: Household savings in the United States
Salaries in medicine
Main article: Salaries in medicine
2024
According to official data, the growth of wages of the population exceeds the inflation rate
How much information security managers earn in the United States
The average salary of information security managers in North America as of the second half of 2024 reached $565 thousand a year. At the same time, 10% of information security directors receive more than $1 million. Such figures are reflected in the materials of the research and recruiting company IANS Artiso, published in early October 2024.
The findings are based on a survey of approximately 700 heads of information security units in the United States and Canada. According to the results obtained, in the technological sector, the average salary of information security managers is $407 thousand per year, but taking into account bonuses and equity, it reaches $721 thousand. In the financial sector, the indicator was recorded at $495 thousand. In the education segment, the average basic salary of information security managers is $243 thousand, while in medical institutions - $334 thousand.
The study found that the most effective way to get a pay rise is to change jobs, or at least notify higher management about it. Such actions provide an average salary growth of 31%. In contrast, simply doing your job and getting a standard annual raise only increases average payouts by 6.3%. At the same time, staff turnover by 2024 has almost halved since 2022, when 21% of information security managers surveyed changed their jobs in the previous 12 months.
According to the survey, among the 10% of the highest paid information security executives, approximately 23% noted a salary increase of more than 20% during the year. On the other hand, the authors of the report say, among the 25% of the lowest paid information security directors, two-thirds said their salaries had not changed or increased by less than 5%.[1]
2023
Average salary about $6.3 thousand per month
As of June 2023, the United States accounts for $91.2 thousand per employee per year of the wage fund at face value, compared with $78 thousand before the COVID-19 crisis in accordance with company declarations/BLS reporting statements. It is considered as all payments in favor of the employed, divided by the average number of employed.
These 91.2 thousand dollars include employer contributions to pension and insurance funds of employees and employer contributions to state social insurance totaling 15.9 thousand dollars, i.e. pre-tax salaries after payment of contributions amount to 75.3 thousand dollars per year or 6.3 thousand dollars per month.
From this $75.3 thousand, you still need to pay income tax. The current salary in the United States in July 2023 is about 6300 thousand dollars per month.
Record income gap between poor and rich - 19 times
In the US, the gap between the poor and the rich is widening, reaching an all-time high according to the Fed as of mid-2023.
From 1989 to 2013, the gap in annual income between the richest 10% and the poorest 20% of American families averaged 16.2 and changed slightly from year to year (income from assets and capital gains of the rich were offset by social benefits for the poor), but from 2014 the gap fell into a gap, reaching 19 by 2022.
This is due to the outstripping dynamics of capital income gains for the ultra-rich group. This imbalance can influence political trends, forming a leftist agenda aimed at the political demagoguery of social justice, equality, fraternity and the withdrawal of money from the rich, Spydell Finance wrote.
Pre-tax income of 20% of the poorest families is only $20.5 thousand per year by median - this includes income from salaries, entrepreneurial activity, social benefits and pensions, interest and dividends, income from capital gains and assets, including rental property.
The effective tax rate for the poor is usually negative, i.e. assistance from the state is more in the entire range of monetized benefits than total taxes and fees, however, this slightly changes the balance.
About 40 million Americans use food stamps, 80% of which are in the group of 20% of the poorest families, covering about 70 million people.
The net reduced ability to save in this category is no more than 31% of the number of families that save at least some money, while for the TOP 10% - about 84% of families regularly form savings.
Among the 20% of the poorest, no more than 4.3% in the income structure is income from entrepreneurial activity and assets, while for the 10% of the richest, half of the income is business and income from assets.
10% of the richest American families have a median income of over $390 thousand, and the average income is $720 thousand. Over 95% of the structure of this group is occupied by qualified and highly qualified Americans.
Salary of 175-200 thousand dollars per year for high-level specialists in the IT sector
The average level of remuneration for a highly qualified engineer/IT specialist/scientist/architect of computer systems in leading US corporations in 2023 is 150-200 thousand dollars per year of accrued pre-tax income (base salary + bonuses + bonuses, benefits + stock options) with more than 7-8 years of experience and the possibility of creating advanced innovative developments of a global scale.
This does not apply to management personnel. Large corporations have a 30-50% higher salary than the average for the economy according to the Indeed/Glassdoor job register and the BLS macroeconomic review.
Advanced vacancies in fast-growing segments, like the creation of generative AI with the possibility of project management, can offer 250-340 thousand dollars per year only the base salary with the possibility of reimbursement up to half a million dollars before taxes (50 million rubles per year). Taxes and fees should be deducted from this amount (with income of about $500 thousand per year - about 35% is cut in the United States).
It is clear that it depends on the company, region and position. The best capabilities in/,,,,, and MicrosoftOpenAI Google nVidia Adobe Salesforce AWS other large, high-growth companies AI in the Information Systems Architecture division.
175-200 thousand dollars per year of net income after the payment of all taxes and fees (if we do not take the highest segment of the TOP) is a very real level for highly qualified senior specialists with many years of experience and with real competencies in creating advanced/innovative developments of a global scale in fast-growing AI units, nanotechnology and biotech.
For a comparable advanced position in Europe, the average net disposable salary in 2023 is about $145-170 thousand, in Japan and South Korea about $135-160 thousand, in China $110-135 thousand, in Russia at the current course in a company like Yandex about $50-70 thousand.
Excluding hype divisions, the average net income is about 0.7-0.75 from the presented income for leading corporations and top specialists.
For engineering vacancies in companies such as Mercedes, Tesla, Airbus, Boeing, Intel, AMD and the like, the average net income of about 0.65 from the above income, i.e. up to 10 thousand dollars per month of net income (after paying all taxes and fees) is quite permissible for the best engineering minds. The average macroeconomic level can be 1.5 times lower, because large corporations greatly shift the proportion, Spydell Finance wrote.
It is fair to say that in 2023, the average net disposable monthly income starts at $10 thousand for highly qualified specialists in developed countries and in the largest corporations. The highest echelon is 20-30 thousand per month, but these are very rare specialists (elite).
This is the cost of the knowledge economy, where incomes are at least 3-5 times higher than the national level.
High salaries are fully justified through a high return on investment, because innovative developments are multiplied in many ways, creating hundreds of billions of dollars in revenue and trillion-dollar capitalization.
Rising wages offset the rise in inflation
The wage fund in the United States grew by 20% from December 2019 to April 2023, however, the main growth occurred from April 2021 - plus 15%, where the greatest intensity was from April 2021 to March 2022, when the annual rate exceeded 10%. At the end of April 2023, the annual increase is about 5% at par.
By March 2022, two-year PHY growth rates exceeded 20% - the maximum rate since 1981 during the period of high inflation in the United States.
The payroll fund is the payment of salaries, bonuses and bonuses in monetary terms, taking into account contributions to the social insurance fund for the entire official labor force in the United States.
PHY at this time is $14.1 trillion per year, or 62.3% of all gross income of American households - this indicator is useful for assessing the burden of business, Spydell Finance wrote.
However, without taking into account contributions to various social insurance funds, the amount of salaries and premiums is estimated at $11.6 trillion, or about $74-75 thousand per year per employee, excluding income tax.
The growth rate of PHY was so significant that it was possible to compensate for the entire accumulated inflationary momentum over 3 years. Taking into account inflation, the change in the payroll from December 2019 is plus 3.2%, but from mid-2021 unchanged.
The current PHY for April 2023 corresponds to the average indicators in the period from July 2021 to March 2022, i.e. the most aggressive inflationary impulse was digested.
All this determines a fairly strong consumer demand, which not only does not fall, but even continues to grow.
In terms of negative impact, the inflation crisis 2021-2023 is comparable to the crisis 2001-2003 (the largest decrease of 1.2% YoY in real terms), that is, the current damage is insignificant in the context of income.
A larger decline was observed in November 1970 (minus 1.6%), February 1975 (minus 4%), June 1980 (minus 4.4%), April 1991 (minus 2.5%) and in November 2009 (minus 5%).
The driver of PHY growth is a shortage of working personnel, a high margin of business and a shift in the employment structure to highly qualified professions.
Decline in real hourly earnings for 23 consecutive months
At the end of February 2023, real hourly earnings in the United States show a record decline for the 23rd month in a row.
That means Biden just two months into the presidency saw wage growth adjusted for, and inflation real incomes were negative for 92% of Biden's tenure, an unprecedented achievement.
Minimum wage - $1550
2022
Real wage growth by a quarter in 22 years
Wage fund $13.4 trillion per year, of which 66.8% is the service sector
Salaries, bonuses and bonuses are the main sources of income for American households (almost 2/3 of national income from all sources) and it is curious to look at the structure of the wage fund (PHF).
BEA annually publishes industry tables in the expanded GDP report, in one of which (Compensation of Employees by Industry) it is possible to assess in detail the structure of PHY in the context of sectors and sectors of the economy. The statistics are not operational - the updated data are released around the middle of the year and only on an annual basis.
In October 2023, there was the largest revision of statistics in 10 years, so the current cut of data for 2022 is as follows...
PHY (salaries, bonuses, bonuses along with insurance payments of all types calculated from salary) is $13.4 trillion per year in accordance with tax statistics and reporting of American business.
The private sector forms 83.1% in the structure of the national payroll, where agriculture forms an insignificant 0.47%, mining - 0.59%, manufacturing - 9.4%, electricity and utilities - 0.71%, construction - 5.19%, services sector in total 66.8%.
In the service sector, the most capacious sectors:
- health care - 11.5%,
- professional and business services, including scientific research - 10.7%,
- finance and insurance - 7.6%.
The state forms 18.9% of PHF in the entire US economy, where the federal government - 4.41% or $593 billion for the remuneration of federal employees (9.5% of all expenses of the federal government).
For three years (2022 to 2019), PHY grew by 2 trillion or 17.4% at par. Out of 17.4% growth, the professional and business services sector contributed 2.66 pp, healthcare - 2.05 pp, the state - 1.71 pp, finance and insurance - 1.53 pp, processing - 1.19 pp, administrative and management services - 1.09 pp, information sector - 1 pp.
The United States is a post-industrial society with a pronounced shift in priority towards information technology, fintech, biotech and scientific research, Spydell Finance wrote.
At least, this conclusion can be drawn both on the basis of an analysis of the structure of industries by value added and by the structure of the wage fund.
In the United States, wage growth at the national level (rather than per employee) occurs in the service sector, which generates 80% of the national wage fund growth structure over the past three years and has ¾ since 2009.
Since 2009, approximately 40% of the growth in all income of American households in the PHY segment has been concentrated in high-wage industries (since 2019 this trend has become more pronounced), i.e. where wages are at least 20% higher than the average for the economy.
This trend causes an integral increase in the solvency of American consumers, which keeps consumer demand at a high level. In 2000-2009, wage growth was concentrated in the mass segment of low and medium wages.
At the same time, the state's share is decreasing - in 2009-2011, the state's share in PHY was on average 21% of the national PHY, and in 2022 - 16.9%, i.e. in the United States, the weight of the private sector is increasing, where there is a fairly pronounced dynamics of a decrease in the share of industry and industries of low redistributions and conditional "old" way.
The decrease in the share of industry is mainly due to an increase in automation of production, which, with a relatively high production output of industrial products, requires less labor employed in industry.
Obviously, not all labor can be automated and the serving segment of the service sector (the industry of culture, sports, entertainment, catering, hotels and consumer services) in the aggregate is quite stable, i.e. the share of the above industries has remained at about the same level for the last 10-15 years.
The share of healthcare, education, science and technology, IT, business services, management and administrative services, the high stability of the financial sector is growing - these industries have the main driver of salary growth and it is in them that the main growth in added value is concentrated.
Decrease in real income per employee in the third quarter by 2.2%
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Overview of IT salaries in the United States
What is the IT industry in the United States in terms of labor? In mid-2022, almost 4.5 million jobs were concentrated in the most promising, capacious, profitable and rapidly growing segment of the American economy, which have a median income of $102.2 thousand according to Spydell Finance calculations based on the BLS review.
Below are the specialties, the number of officially employed in thousands of people and the median pre-tax income in thousands of dollars in mid-2022 (the list is sorted from higher salary to lower):
- Computer and Information Research Scientists - 36.5 thousand employed/$ 136.6 thousand
- Computer Network Architects - 180.2 / $126.9
- Software Developers, Quality Assurance Analysts, and Testers - 1795.3 /$124.2
- Database Administrators and Architects -149.3 / $112.1
- Information Security Analysts - 168.9 / $112
- Computer Systems Analysts - 531.4 / $102.2
- Computer Programmers - 147.2 / $97.8
- Network and Computer Systems Administrators - 339.9 / $90.5
- Web Developers and Digital Designers - 216.7 / $80.7
- Computer Support Specialists - 914.1 / $59.7
Salary statistics take into account PHY (base salary plus bonuses and bonuses in cash equivalent), but does NOT take into account stock options and non-cash items (corporate benefits, meals, fitness, corporate mortgage subsidies, free medicine from the company, and so on).
The average salary in IT is at least 1.5 times the median, and highly qualified specialists with great experience in large corporations can receive income 2-3 times more than the presented income, because BLS statistics unites all regions of the United States, all companies (taking into account small and medium-sized businesses) and employees of any experience.
Two interesting specialties can be distinguished here.
The most elite of all elites is Computer and Information Research Scientists. Scientists engaged in computer and information research develop innovative ways to use new and existing technologies, develop new computer languages, software systems, complexes and other tools, create and improve computer and hardware.
In this category, specialists develop operating systems, create game engines, drivers for hardware, create algorithms for information systems, and improve programming languages. Specialists can be divided into those who support existing systems (median income is close to official statistics) and those who create fundamentally new solutions.
Here, revenues can go into infinity, because 500-700 thousand dollars and even 1 million a year to leading specialists is quite the norm for 2023 in large corporations. Another thing is that there are literally dozens of them in one company, but the return on investment can be colossal, because we are talking about a business of hundreds of billions of dollars.
Software Developers, Quality Assurance Analysts, and Testers are the largest category with 1.8 million employees. This is the software developers. You can describe the nuances endlessly, but in this category the most significant spread of income due to large differences in the directions and specifics of applied problems.
Review of salaries of 1.4 million researchers: median income before taxes - $83.3 thousand per year
Who drives the progress of the American economy, who creates and develops science and technology?
In mid-2022 , there were 1.4 million scientists in the United States engaged in fundamental, applied and social science, the median pre-tax income of which was 83.3 thousand dollars, taking into account maintenance technical personnel (laboratory assistants, junior and secondary scientific personnel).
1.4 million people include personnel, both in state, quasi-state research units, and in private companies.
The least listed in the United States are scientists engaged in public opinion research, compiling and conducting surveys - income of 60.4 thousand (hereinafter, the annual median income in May 2022 will be taken into account, and in November 2023, incomes are about 6-12% higher), while sociologists and researchers of public processes receive about 100 thousand, and psychologists - 85.3 thousand.
The level of 60 thousand determines the minimum threshold for senior scientific personnel.
Anthropologists, archaeologists, environmental scientists, environmental protection specialists, fauna researchers, zoologists and wildlife researchers receive 60-67 thousand. Historians are unpopular - only 3.5 thousand people, and revenues 64.5 thousand.
Scientists in the field of agriculture and food industry are exploring ways to improve the efficiency and safety of agricultural enterprises and products - income 74.9 thousand.
Urbanists - specialists in urban construction, planning and arrangement have an income of about 80 thousand. Meteorologists, hydrologists and geophysics - 84-88 thousand.
Microbiologists, epidemiologists, biochemists and biophysics, scientific doctors and medical technical scientific personnel make up 266 thousand people, having an income of 82.8 thousand, and excluding technical personnel - 184 thousand people and 98 thousand dollars. Revenue is very different from the size of companies.
Physicists and astronomers receive the most - 139.2 thousand, political scientists - 128 thousand, economists and risk management specialists in assessing financial and economic imbalances - 114 thousand. Mathematicians, statisticians and Data Science specialists receive about 100-105 thousand.
Engineers receive a median income of about $97 thousand per year
Science is driven by scientists, and technology is implemented and developed by engineers, translating concepts into prototypes and serial copies.
In the United States [1] , 2.35 million engineers and auxiliary employees of various specialties are officially listed, having a median pre-tax annual income of $88.5 thousand, and about 560 thousand engineers of various specialties have income over $100 thousand.
Excluding technical and support personnel (580 thousand and median income of $60 thousand), engineers have an income of about $97 thousand.
Bio-engineers, chemical engineers, materials and electrical and electronics engineers have a median income of $100-106 thousand. Nuclear engineers receive $122 thousand, aerospace engineers - $127 thousand, oil engineers - $132 thousand, and developers of computer equipment (hard component) - over $132 thousand.
Least of all are surveyors, cartographers and landscape architects ($63-73 thousand).
Often, the line between an applied scientist nuclear physicist and a nuclear engineer is very blurred, because they work in close coordination and usually in one unit, where the directions of research and nuclear testing intersect. This is true for many other engineering and scientific areas.
Therefore, it is correct to take into account engineers together with scientists (1.4 million people, see above). If we single out scientists of purely humanitarian and social profiles, we are talking about 1.1 million scientists of applied sciences.
Accordingly, scientists, together with engineers, create a core of 3.5 million people driving the technological progress of the United States without taking into account IT specialists, of which there are almost 4.5 million people, and if you allocate the IT support service and system administrators - only 3.2 million IT specialists (including system analysts).
It is fair to talk about 6.7 million highly qualified workers engaged in creating innovations and supporting existing systems in the segment of science, technology and IT solutions.
This, of course, is a fairly limited list of qualified workers, since management personnel, financiers, lawyers, doctors, and so on are not taken into account.
2021: U.S. workers' salaries fall 70% over 40 years due to automation
Since 1980, the salaries of workers in the United States have decreased by 50-70% due to the fact that enterprises began to connect automation technologies to work processes. This is evidenced by data from a report by the National Bureau of Economic Research (NBER), published in mid-June 2021.
Over the past 40 years, artificial intelligence, robotics, as well as other innovative technologies introduced in various spheres of human activity have led to wage cuts, layoffs, income inequality.
Wages for low-level workers formations have declined significantly over the past four decades, with real earnings for people without secondary education falling by 15% since 1980. During the same time, the wages of workers with higher education and, to a much lesser extent, with a bachelor's degree rose sharply.
 | Many of the new job opportunities that technology discovered from the 1960s to the 1980s were beneficial for low-skilled workers, notes MIT economist Daron Ajemoglu. - But since the 1980s, and especially in the 1990s and 2000s, low-skilled workers have suffered a double whammy: they suffer layoffs, and the new tasks that emerge are slower and benefit highly skilled workers. |  |
The COVID-19 coronavirus pandemic has further accelerated the introduction of automation technologies, and new forms of artificial intelligence are focused on automating increasingly highly qualified tasks.
According to a report by the World Economic Forum, automation will cause approximately 85 million job cuts by 2025, and a Wells Fargo study says robotization will lead to the disappearance of 200,000 jobs in the banking industry over the next 10 years.
The trend toward automation could ultimately have an impact on all classes of workers, including in the wage aspect. For this reason, experts call for the development of measures to control and manage AI.[2]
2019
White incomes are significantly higher than black incomes
Rating of companies with the highest salaries
In September 2019, the recruiting portal Glassdoor published a rating of American companies with the highest salaries. The first place was taken by the manufacturer of information security solutions Palo Alto Networks with an average annual salary of $170,929. Pay a little less at Nvidia - $170,068. The top three was closed by the Twitter service ($162,852).
9 of the 10 most generous employers in the U.S. represent the technology industry, and most are based in San Francisco. This partly explains the high salaries - this city has high rental costs and intense competition for skilled workers.
The study also cites professions with the highest salaries. The doctor and pharmacists top the rating:
- Doctors - $193.4 thousand
- Pharmacy managers - $144.8 thousand.
- Dentists - $142.5 thousand
- Pharmacists - $126.4 thousand
- Architects - $122.6 thousand.
- Corporate advisers - $117.6 thousand.
- Software Development Managers - $114.2 thousand
- Medical assistants - $113.9 thousand.
- Corporate controllers of finance - $113.4 thousand.
- Software developers - $109.8 thousand.
Glassdoor conducted a study on July 1, 2018 to June 30, 2019. The average annual salary in the United States is estimated at $53,950. According to experts, some of the highest paid jobs require many years of study (for example, in medicine), and experience (financial and IT industries) plays a decisive role in others.
| | The culture and values of the company, trust in management and career opportunities are all the most important to ensure that employees are satisfied with their work. Although wages largely determine the choice of place of work, they should not be the only factor in making an important decision when applying for a job, the report says.[3] | |
Automation devours salaries
According to a study by economists at the Federal Reserve Bank of San Francisco (October 2019), automation has "made a significant contribution" to reducing the share of national income that goes to American workers over the past two decades.
The share of the workforce fell to about 56% from 63% in 2000, and the increase in the use of robots and other technologies was an important driving factor.
"Companies now have more opportunities to automate hard-to-execute positions than in the past. With rapid advances in robotics and artificial intelligence, robots can perform more tasks and tasks that required human skills just a few years ago. "
As a result, workers have become more reluctant to ask for significant pay increases out of fear that their employer will turn to automation to replace them.
2021: Hourly wage dynamics
As of April 2021, in the United States, it is still more profitable for dishwashers, hotel employees and teachers to stay at home than to work.
In 2018, CEOs running 350 top U.S. companies received an average of $17.2 million each, 278 times the salary of their average worker.
Since 1978, CEO pay in the U.S. has risen by nearly 1,000%, while the average wage for workers has risen by just under 12%.
2018: Highest paid professions in the public sector
As of early 2019, most states in the budget sector are most profitable to work as a football coach. Deans of medical and legal departments also earn well.
2017: Pay's share of GDP shrinks
Main article: US GDP
2015: Share of labour costs in business income declines
Consumption
Main article: Consumption in the United States
Notes
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