California wages up 2.7%, eighth-smallest raises in US

While California bosses started 2026 at the top of the charts for boosting staff, they were fairly skimpy with their pay raises.

My trusty spreadsheet analyzed a federal employment report that tracks jobs and average weekly wages across the 50 states and the District of Columbia. This quarterly data is drawn from employers’ unemployment insurance filings and is considered a more accurate tally than monthly survey-based reports.

Since good stats take time, we’re looking at the first quarter of 2026. California’s average weekly wage was $1,986. That’s the sixth-highest in the country and 20% above the national average of $1,654.

Where were wages above the Golden State? The District of Columbia at $2,725, New York at $2,363, Massachusetts at $2,201, Connecticut at $2,080 and Washington state at $1,998.

And lowest pay? Mississippi at $1,051, West Virginia at $1,188 and South Dakota at $1,211.

As for California’s economic arch-rivals, Texas was No. 13 at $1,646, and Florida was No. 19 at $1,518.

Slim raises

But when it came to pay bumps, California workers lagged most of the country.

Wages in California grew just 2.7% over the year, ranking eighth from the bottom and falling short of the nation’s 3.9% average. National inflation ran at 2.7% in the quarter, so the typical Golden State worker saw their pay raise eaten up by the high cost of living.

Biggest wage gains? New York, up 6.5%; Idaho, up 6.2%; and Wyoming, up 5.8%. Smallest raises? Hawaii, up 1.7%, Nevada, up 2.1% and North Dakota, up 2.4%.

And the rivals? Texas was No. 24 at 3.8%, while Florida ranked No. 13 at 4.3%.

Job bump

California’s small raises are a sharp contrast to one of the year’s economic surprises: statewide job growth outperforming the nation.

Remember, the Golden State is the nation’s largest job market with 18.2 million workers, 12% of the 155 million Americans who have a job.

With a workforce that big, you might figure California would be at the top of the list anyway. But the nation’s economy started 2026 in a shaky condition.

But get this: California added 163,900 new jobs in the year ended in the first quarter. That’s not only more than any other state, but it was also more than the entire country as a whole. The U.S. added just 154,800 jobs over those 12 months.

Texas had the second-largest gain, up 84,700, while 32 states lost jobs over the 12 months. Worst was Maryland, down 45,900; the District of Columbia, down 32,200; and Massachusetts, down 32,000.

And ponder the U.S. job market’s lethargy this way: Florida ranked 13th best for having a flat job market over 12 months.

Pointing it out

Despite its heft, California’s job market also shined on a percentage-point basis.

Jobs in the Golden State grew at a 0.9% annual rate in the first quarter, third-best among states and far faster than the nation’s weak 0.1% growth.

Who topped California? Nevada, up 2%, and Idaho, up 1.9%. Biggest drops? The District of Columbia, off 4.5%, Maryland, off 1.7%, and Oregon and Alaska, off 1.3%.

Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com

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