San Diego County Wages Stagnate Amid Inflation: A Comparative Analysis

San Diego County wages have shown minimal growth. As of the second quarter, wages increased by only 0.1% compared to the previous year. This growth rate is significantly lower than the national average of 4.4%. Among the ten largest counties in the U.S., San Diego had the slowest wage growth.

The average weekly pay in San Diego County stood at $1,526, above the average of $1,390 nationwide. However, this figure is overshadowed by comparisons to other counties. For example, King County in Washington recorded a 10% increase in wages.

Despite the underwhelming growth, San Diego’s average salary is still higher than that of Orange County, Miami-Dade, and Maricopa County. The wage growth data fluctuates due to the bureau’s broad wage definition, which includes various payouts like bonuses and profit distributions. This can lead to misleading averages if large one-time payments are not made consistently.

Inflation remains a pressing issue, with a 3.3% rise recorded in San Diego County through September. Economist Alan Gin noted that without wage increases, real income is effectively declining. Factors contributing to San Diego’s wage challenges include fewer corporate headquarters and the “San Diego discount,” where lower wages are accepted due to favorable weather.

Job losses in the high-paying professional and business services sector impacted overall wage growth, with a 4.4% decline in jobs and a 6.5% drop in weekly wages to $2,198. Other sectors, like education and health services, saw modest increases of 1% to $1,243 weekly, while leisure and hospitality grew by 2.5% to $746 weekly.

The information sector experienced the highest wage growth at 11.2%, with a weekly pay of $2,987, but this sector employs only 20,600 workers. Other sectors with substantial wage increases included government (up 4.8% to $1,671), construction (up 4.5% to $1,579), and trade, transportation, and utilities (up 4.4% to $1,183).

Orange County reported stronger wage growth of 4.2% with a weekly wage of $1,506, still slightly lower than San Diego’s figures.

The U.S. Bureau of Economic Analysis will provide a more detailed analysis of real personal income in December. This report will encompass wages, benefits, and other income adjustments for inflation, offering a clearer view of San Diego’s economic situation.

Wage Growth in Major Counties (Q2 2024)

• King: $2,507 – 10.4%
• Dallas: $1,644 – 5.2%
• New York: $2,721 – 4.6%
• Maricopa: $1,381 – 4.6%
• Harris: $1,574 – 4.4%
• Orange: $1,506 – 4.2%
• Los Angeles: $1,534 – 4.1%
• Miami-Dade: $1,400 – 3.2%
• Cook: $1,570 – 3%
• San Diego: $1,526 – 0.1%

Published: November 20, 2024