If you’re an online entrepreneur looking to set up an ecommerce business targeting the US market, it’s important to have a basic understanding of the average US income.
According to the latest data on average American income levels from the US Bureau of Labor Statistics (BLS), in 2019, the average salary in the US came in at $81,220.
This marked the first time that the average American salary exceeded the $80,000 barrier. It also represents a 6.4 percent year-over-year growth for the average US income—the largest increase in recent years.
Though there were slight dips of 0.16 percent and 0.92 percent in 2013 and 2014 respectively, the average American income has actually been increasing steadily in recent years.
As a matter of fact, the average American salary has risen every year since 2014. In the five-year period from 2014 to 2019, it increased by $16,788, which is a 4.77 percent average annual increase and a whopping 26.1 percent overall increase.
Average US Income in 2020
The latest statistics from the BLS show that as of the second quarter of 2020, the median weekly income of all full-time wage and salary American workers was $1,006. This is a 10.3 percent year-over-year increase and a 3.6 percent quarterly increase.
Assuming a 40-hour workweek, the average hourly income for American workers in Q2 2020 comes in at $25.05.
The BLS has cautioned, however, that the increase should be interpreted with care. Instead of a general increase in income levels across the board, which is unusual considering the economic recession triggered by the coronavirus pandemic, the growth in weekly income is representative of the higher number of job losses for workers with lower salaries than those with higher salaries.
In other words, those with lower salaries were more likely to be laid off, which makes it appear as if the average income has increased.
Average Income in the US Compared to the Rest of the World
According to data from the World Bank, the US is one of the countries whose citizens enjoy high levels of income. Along with Canada, Greenland, Australia, Japan, South Korea, and most European Union countries, the US is tagged as a “high income” country.
Given the relatively high average American salary, it should also come as no surprise that the purchasing power of Americans also ranks among the highest in the world, second to only China.