By net worth, the United States has been the wealthiest nation in the world for the last 60 years. With its large, diversified economy of tourism, services, banking industries, renewable energy, etc., America has dominated the world’s economic landscape.
Median vs. Average Household Income in the US
According to the U.S. Census Bureau, by the close of 2022, the median household income was $74,580, while the average U.S. household income was $105,555. The disparity between the two numbers is due to how they have been extrapolated.An average income is the sum of all divided by the count of incomes in the data set. While the median is the income in the middle of the data set. This means that the average income can be a skewed number.
For example, if five individuals make between $40,000 and $50,000 and one makes $500,000, the average income will be $120,000. This contrasts with the median income, which would still be between $40,000 and $50,000.
The median income in the United States decreased 2.2 percent between 2021 and 2022. From 2019 to 2022, the median household income went from $78,250 to $74,580.
Median Household Income by Region
Median household income is different by region.- Northeast—$80,360
- Midwest—$73,070
- South—$68,230
States Differ in Income
Coming in at number one, Maryland’s median household income is $97,332. However, Maryland moves down the list to number 10 regarding personal income per capita, which is $69,694.Per capita income is derived by dividing the aggregate income of a particular group by the total population in that group. In this case, a state.
- District of Columbia—$90,640
- New Hampshire—$88,841
- New Jersey—$88,559
- Utah—$87,649
- Washington—$87,648
- Alabama—$56,929
- Kentucky—$55,629
- New Mexico—$53,463
- Arkansas—$50,784
- West Virginia—$46,836
Individual Income Distribution in America
How does income break down in America?The percentage of households earning less than $10,000 is 5.5 percent, while the highest percentage of household income earners with $200,000 or more is 11.5 percent.
But where does the average American fall?
The $100,000–149,999 income encompasses 16.9 percent of U.S. households. In second place comes those households earning $50,000–74,999 at 16.2 percent.
- $10,000–14,999—3.7 percent
- $15,000–24,999—6.8 percent
- $25,000–34,999—7.3 percent
- $35,000–49,999—10.7 percent
- $75,000–99,999—12.8 percent
- $150,000–199,999—8.7 percent
Highest and Lowest-Paying Jobs
There’s a difference between income, which can be various streams of revenue versus salary. Salaries are attributed to individuals and come from a single employer of self-employed payment.According to the U.S. Bureau of Labor Statistics (BLS), the mean for a salary or full-time worker is $53,490 annually.
The highest salary in the United States is a cardiologist, earning $421,330 annually. Shampooers are the lowest at $27,870.
- Nurse practitioners—$96,285
- Firefighters—$48,532
- Electricians—$47,800
- Pharmacy technicians—$35,800
- Construction managers—$84,185
- High school teachers—$51,640
- Investment banker—$104,670
An American product manager draws $132,000 instead of their European counterpart, who makes $90,000.
Employment in America
According to the BLS, as of November 2023, the U.S. unemployment rate was 3.7 percent. The lowest unemployment rates came from Maryland and North Dakota, with 1.8 and 1.9 percent, respectively.Nevada came in with the highest unemployment rate, with 5.4 percent.
Currently, most industries have some worker shortages. Most people have heard that leisure and hospitality have a labor shortage. They are now operating with 60 percent of the workers they need.
But the biggest labor shortage is in the professional and business services category. Currently, they have 50 percent of their positions filled.
Understand the Numbers
When evaluating the revenue generated by the average worker, it’s important to know where the numbers are coming from.There’s a significant disparity between median household income and average household income. Salary and income are also two different measurements.