Subscribe to Our Newsletter

Success! Now Check Your Email

To complete Subscribe, click the confirmation link in your inbox. If it doesn’t arrive within 3 minutes, check your spam folder.

Ok, Thanks

Compensation growth in Los Angeles outpaces U.S. average in new 2025 data

Wage and compensation growth in Los Angeles outpaced the national average in the year ending March 2025, according to new data from the U.S. Bureau of Labor Statistics. While growth has slowed slightly year-over-year, LA remains a top-tier metro for rising private sector pay.

Pat Sharyon profile image
by Pat Sharyon
Compensation Trends in Los Angeles vs. the Nation.
Private industry workers in Los Angeles saw stronger compensation and wage growth than the national average through March 2025, reflecting regional labor market strength.

New data from the U.S. Bureau of Labor Statistics (BLS) reveals that compensation growth for private industry workers in the Los Angeles-Long Beach metropolitan area continues to outpace the national average.

Per Capita Income by State: Explore U.S. Rankings with Interactive Map
Compare per capita income across all 50 U.S. states using a live, interactive map updated with the latest federal data. This tool offers a clear view of how income levels differ by region and where each state falls within national income tiers.

For the 12-month period ending March 2025, Los Angeles saw a 4.1% increase in total compensation, compared to 3.4% nationally. Wages and salaries alone rose by 4.4% in LA—again outpacing the national gain of 3.4%.

Line chart comparing 12-month percent changes in total compensation for U.S. and Los Angeles.

A Steady Performer in the West

Los Angeles ranked in the middle of the pack among the four largest metro areas in the West. Here's how it compares for the year ending March 2025:

  • Total Compensation Growth:
    • Seattle: 5.8%
    • Los Angeles: 4.1%
    • San Jose: 3.8%
    • Phoenix: 3.4%
  • Wage and Salary Growth:
    • Seattle: 5.6%
    • Los Angeles: 4.4%
    • San Jose: 3.5%
    • Phoenix: 3.2%
Line chart comparing 12-month percent changes in wages and salaries for U.S. and Los Angeles.

National Perspective: LA in the Top Half

In a comparison of the 15 largest U.S. metro areas, Los Angeles ranks:

  • 6th in total compensation growth
  • 6th in wage and salary growth

By contrast, Houston leads all metro areas with a massive 7.5% gain in total compensation, while Minneapolis-St. Paul saw the largest increase in wages and salaries at 5.7%. At the bottom of the rankings, Miami-Fort Lauderdale-Port St. Lucie saw just a 1.1% increase in compensation and a 1.2% rise in wages.

Bar chart showing total compensation and wage/salary growth by metro area.

Though LA remains a consistent outperformer, both local and national compensation growth have moderated over time. In 2022, LA’s compensation growth exceeded 5%, but has cooled to 4.1% by March 2025. Nationally, the same trend is apparent—dropping from 5.1% in early 2022 to 3.4% today.

California Per Capita Income: Historical Trends and Data Revisions
California’s per capita personal income has steadily increased over time, reflecting long-term economic shifts across the state. This page features interactive charts with historical data and revisions, updated automatically as new federal estimates are released.

What's Next?

The BLS plans to enhance data precision beginning July 2025 by publishing Employment Cost Index levels to three decimal places. This change will allow for even more accurate analysis in future reports.

California Unemployment Map and Labor Force Data
Explore California’s unemployment rate by county with this interactive map, plus current labor force metrics. Updated monthly with data from the EDD and U.S. Bureau of Labor Statistics.
Pat Sharyon profile image
by Pat Sharyon

Subscribe to New Posts

Subscribe for the latest in California today, every day.

Success! Now Check Your Email

To complete Subscribe, click the confirmation link in your inbox. If it doesn’t arrive within 3 minutes, check your spam folder.

Ok, Thanks

Read More