The California Employment Development (EDD) Department has made available new data on 10-year wage growth across every major industry in the Golden State.

It shows that over the past decade California’s labor market has experienced significant wage growth, driven by economic expansion and changing industry demands. However, when adjusted for inflation, the picture becomes clearer: real wage growth highlights how much purchasing power workers have actually gained. Focusing on three pivotal industries—Information, Leisure and Hospitality, and Construction—reveals where progress has been most impactful.

Note: The "real wage growth" figures in this article were calculated based on the the latest CPI data from the CA LAO. These figures should be considered estimates. All other data in this article is drawn from CA EDD Labor Reports.

Information Industry: Steady Growth in Real Earnings

The Information sector (including tech) continues to dominate in absolute terms, with nominal hourly wages climbing from $41.17 in 2014 to $62.30 in 2024, representing a 51% nominal increase. However, when adjusted for inflation, real wage growth in the sector stands at 12.19% over the decade.

This growth reflects the sector's resilience and ability to deliver meaningful increases in purchasing power for workers, even as California’s cost of living has risen significantly. Anchored by the state’s thriving tech economy, the Information sector remains a stronghold of economic opportunity, ensuring workers in this industry benefit from steady, inflation-adjusted wage gains.

Leisure and Hospitality: Leading in Real Growth

Although it remains the lowest-paid sector, Leisure and Hospitality has shown the most significant real wage growth, increasing by 25.18% from 2014 to 2024. Nominal wages rose from $15.69 to $26.49 over the period, a 69% increase. Even after accounting for inflation, workers in this sector have seen the largest improvement in purchasing power of the three industries analyzed.

This growth signals a shift toward narrowing wage disparities for workers in restaurants, hotels, and entertainment venues. While challenges remain—particularly as these wages still lag behind other industries—this real wage growth demonstrates a meaningful step forward for some of California’s most underpaid workers.

Construction: A Solid Foundation of Growth

The Construction industry experienced a 48% nominal wage increase, with hourly wages rising from $31.08 in 2014 to $46.07 in 2024. However, inflation-adjusted figures show a more modest 9.90% real wage growth over the decade.

This growth reflects the sustained demand for skilled labor in response to California’s housing crisis and infrastructure projects. While construction wages remain competitive, real growth in purchasing power has been slower compared to other sectors, indicating room for further improvement as the state continues to expand its infrastructure.

Real Wage Growth in Other Industries

Beyond the three highlighted sectors, other industries have also experienced varying levels of real wage growth when adjusted for inflation:

• Goods Producing: Nominal wages increased from $29.53 to $43.80 (48% growth), with real wage growth of approximately 9.88%.
• Private Service Providing: Nominal wages rose from $27.22 to $39.27 (44% growth), translating to a 6.67% real increase.
• Manufacturing: Wages climbed from $28.59 to $41.99 (47% growth), resulting in a 9.80% real increase.
• Trade, Transportation, and Utilities: Nominal wages grew from $21.94 to $31.49 (43% growth), but real growth was 6.10%.
• Education and Health Services: Wages increased from $28.16 to $39.09 (39% growth), with a 3.72% real increase.
• Financial Activities: Nominal wages rose from $33.45 to $46.95 (40% growth), leading to a 4.44% real gain.
• Professional and Business Services: Wages grew from $34.53 to $48.31 (40% growth), equating to 4.44% real growth.
• Other Services: Nominal wages increased from $22.97 to $35.65 (55% growth), translating to a 14.54% real increase.

Conclusion

California’s wage data reveals both progress and challenges across its diverse economy. The Information sector continues to offer high-paying jobs with steady real wage growth, while Leisure and Hospitality has made the greatest strides in improving wages relative to inflation. Meanwhile, Construction reflects the state’s infrastructure priorities but lags slightly in inflation-adjusted growth.

For other industries, real wage gains vary significantly, with some sectors barely keeping pace with rising costs. As California’s economy moves forward, understanding the nuances of real wage growth will be crucial in shaping policies to ensure equitable prosperity for all workers.