Private-sector workers in these states had the biggest pay raises over the past year

Workers got historically large raises between March 2022 and March 2023, as companies scrambled to fill jobs. The standard 3% average increase gave way as compensation for workers in private industry rose 4.8% over the year, according to the Bureau of Labor Statistics. That includes a 5.1% increase in wages and salaries and a 4.3% boost in benefit costs.

Employers are predicting hikes of 4.6% for 2023, according to one survey of 1,550 U.S. companies by Willis Towers Watson.

But whether those amounts will help keep employees is far from certain. Another survey from Remote.co, which focuses on remote work, reports that 4 in 5 employees find inflation is outpacing their salaries. For urban consumers, the cost of goods increased 5% from March 2022 to 2023.

Some human resources professionals say it would take compensation increases of 8% to 10% to convince workers to stay in their jobs.

The job market is cooling, with openings falling in February 2023 to the lowest level since May 2021. But the number is still above the level before the coronavirus pandemic. Inflation also is cooling, with prices increasing at the slowest pace in the 12 months ending in March 2023. They rose 5% in the preceding 12 months, down from 9% in the summer of 2022.

Stacker used Bureau of Labor Statistics data to find which states had the largest pay increases from March 2022 to 2023. The analysis also includes the monthly change in pay. Maryland and Washington D.C. experienced wage decreases year over year and weren't included in the rankings.

#49. Virginia

- March 2023 average wage: $32.97 per hour
- Annual change: +1.1%
- Monthly change: -1.5%

#48. Iowa

- March 2023 average wage: $28.10 per hour
- Annual change: +1.2%
- Monthly change: -0.7%

#47. Illinois

- March 2023 average wage: $32.81 per hour
- Annual change: +1.3%
- Monthly change: -0.2%

#46. New Mexico

- March 2023 average wage: $26.90 per hour
- Annual change: +2.1%
- Monthly change: -1.4%

#45. Alabama

- March 2023 average wage: $28.86 per hour
- Annual change: +2.7%
- Monthly change: -0.9%

#44. New York

- March 2023 average wage: $36.50 per hour
- Annual change: +2.8%
- Monthly change: -0.4%

#43. Indiana

- March 2023 average wage: $29.38 per hour
- Annual change: +2.8%
- Monthly change: -1.0%

#42. Wyoming

- March 2023 average wage: $28.92 per hour
- Annual change: +2.8%
- Monthly change: -0.7%

#41. Michigan

- March 2023 average wage: $30.75 per hour
- Annual change: +2.9%
- Monthly change: -0.1%

#40. Delaware

- March 2023 average wage: $30.37 per hour
- Annual change: +3.0%
- Monthly change: -0.9%

#39. Kansas

- March 2023 average wage: $29.31 per hour
- Annual change: +3.0%
- Monthly change: +0.4%

#38. Wisconsin

- March 2023 average wage: $30.63 per hour
- Annual change: +3.1%
- Monthly change: +0.2%

#37. Nebraska

- March 2023 average wage: $30.26 per hour
- Annual change: +3.2%
- Monthly change: 0.0%

#36. California

- March 2023 average wage: $38.00 per hour
- Annual change: +3.3%
- Monthly change: +0.2%

#35. New Jersey

- March 2023 average wage: $34.72 per hour
- Annual change: +3.5%
- Monthly change: -0.9%

#34. New Hampshire

- March 2023 average wage: $33.68 per hour
- Annual change: +3.6%
- Monthly change: -0.6%

#33. Georgia

- March 2023 average wage: $30.21 per hour
- Annual change: +3.6%
- Monthly change: -1.8%

#32. Massachusetts

- March 2023 average wage: $40.29 per hour
- Annual change: +4.0%
- Monthly change: -0.3%

#31. Maine

- March 2023 average wage: $29.66 per hour
- Annual change: +4.1%
- Monthly change: -0.9%

#30. Hawaii

- March 2023 average wage: $34.29 per hour
- Annual change: +4.4%
- Monthly change: -0.2%

#29. Colorado

- March 2023 average wage: $35.21 per hour
- Annual change: +4.4%
- Monthly change: -0.2%

#28. Minnesota

- March 2023 average wage: $35.16 per hour
- Annual change: +4.5%
- Monthly change: -0.4%

#27. Kentucky

- March 2023 average wage: $27.86 per hour
- Annual change: +4.6%
- Monthly change: +1.2%

#26. North Carolina

- March 2023 average wage: $30.98 per hour
- Annual change: +4.7%
- Monthly change: -0.3%

#25. Mississippi

- March 2023 average wage: $24.75 per hour
- Annual change: +4.7%
- Monthly change: +0.6%

#24. South Dakota

- March 2023 average wage: $28.25 per hour
- Annual change: +4.8%
- Monthly change: +0.1%

#23. Alaska

- March 2023 average wage: $34.22 per hour
- Annual change: +4.8%
- Monthly change: -0.4%

#22. Connecticut

- March 2023 average wage: $35.81 per hour
- Annual change: +4.9%
- Monthly change: -0.2%

#21. Nevada

- March 2023 average wage: $29.39 per hour
- Annual change: +4.9%
- Monthly change: -0.4%

#20. Pennsylvania

- March 2023 average wage: $30.79 per hour
- Annual change: +5.0%
- Monthly change: +0.1%

#19. Arizona

- March 2023 average wage: $31.12 per hour
- Annual change: +5.1%
- Monthly change: -1.1%

#18. Utah

- March 2023 average wage: $32.42 per hour
- Annual change: +5.3%
- Monthly change: -0.6%

#17. Washington

- March 2023 average wage: $39.00 per hour
- Annual change: +5.3%
- Monthly change: -0.2%

#16. Louisiana

- March 2023 average wage: $28.33 per hour
- Annual change: +5.3%
- Monthly change: 0.0%

#15. Tennessee

- March 2023 average wage: $29.09 per hour
- Annual change: +5.3%
- Monthly change: -0.4%

#14. South Carolina

- March 2023 average wage: $29.14 per hour
- Annual change: +5.7%
- Monthly change: +1.6%

#13. Arkansas

- March 2023 average wage: $27.02 per hour
- Annual change: +5.8%
- Monthly change: -0.9%

#12. Texas

- March 2023 average wage: $31.12 per hour
- Annual change: +5.9%
- Monthly change: -0.2%

#11. Florida

- March 2023 average wage: $30.94 per hour
- Annual change: +6.5%
- Monthly change: +1.4%

#10. Missouri

- March 2023 average wage: $30.14 per hour
- Annual change: +6.6%
- Monthly change: -0.4%

#9. Idaho

- March 2023 average wage: $29.20 per hour
- Annual change: +6.6%
- Monthly change: +0.6%

#8. Ohio

- March 2023 average wage: $30.41 per hour
- Annual change: +6.6%
- Monthly change: -0.5%

#7. Montana

- March 2023 average wage: $29.13 per hour
- Annual change: +6.9%
- Monthly change: -2.5%

#6. Vermont

- March 2023 average wage: $31.88 per hour
- Annual change: +7.4%
- Monthly change: +1.1%

#5. West Virginia

- March 2023 average wage: $28.08 per hour
- Annual change: +7.4%
- Monthly change: +1.1%

#4. Oklahoma

- March 2023 average wage: $28.32 per hour
- Annual change: +8.1%
- Monthly change: -0.5%

#3. North Dakota

- March 2023 average wage: $32.47 per hour
- Annual change: +8.2%
- Monthly change: -1.0%

#2. Oregon

- March 2023 average wage: $34.12 per hour
- Annual change: +8.6%
- Monthly change: +0.2%

#1. Rhode Island

- March 2023 average wage: $34.08 per hour
- Annual change: +10.2%
- Monthly change: -1.3%

Data reporting by Paxtyn Merten. Story editing by Jeff Inglis. Copy editing by Paris Close. Photo selection by Elizabeth Ciano.