Seattle Area Wages Grow 4.8% in 2012 for Nation's Strongest Increase

 
 

Seattle topped the nation in wage growth, tying Houston, but beating Boston, San Francisco, Los Angeles and New York. Wages in Seattle in the fourth quarter of 2012 were up 4.8 percent from the same period in 2011, compared to just 1.6 percent in Washington D.C., another area where the economy has been relatively strong. Wage growth was 3.9 percent in San Francisco and 3.3 percent in Los Angeles.

Here's the press release from Payscale:

Seattle – January 9, 2013 - PayScale, Inc. today announced The PayScale Index for Q4 2012, which tracks quarterly trends in compensation.

Even with the uncertainty brought about by the federal government’s budgetary issues, Q4 2012 proved to be yet another strong quarter for wage growth. Wages for most cities, industries, job categories and company sizes tracked by The PayScale Index are the highest they’ve been since 2006 and every measure of The PayScale Index experienced an annual growth in wages.

“While the headlines oftentimes go to the large-sized companies, The PayScale Index for the second consecutive quarter showed wage growth for small companies outpacing medium and large companies,” said Katie Bardaro, lead economist, PayScale. “Wages in Q4 2012 grew by 2.2 percent for small companies compared to only 1 percent for medium companies and 0.9 percent for large companies.  This strong quarterly growth pushed small companies to almost 5 percent year-over-year wage growth, compared to only 2.7 percent for medium companies and 3.3 percent for large companies.”

MetroRank By Pop(2009) Metropolitan Area PayScale Index 2012   Change
2011-2012
15  Seattle-Tacoma-Bellevue, WA 111.6   4.8%
Houston-Baytown-Sugar Land, TX 113.1   4.8%
14  Riverside-San Bernardino-Ontario, CA 105.0   4.5%
10  Boston-Cambridge-Quincy, MA-NH 109.5   4.5%
Dallas-Fort Worth-Arlington, TX 109.1   4.3%
13  San Francisco-Oakland-Fremont, CA 108.3   3.9%
Chicago-Naperville-Joliet, IL-IN-WI 108.0   3.8%
16  Minneapolis-St. Paul-Bloomington, MN-WI 108.3   3.7%
  United States 108.6   3.5%
Los Angeles-Long Beach-Santa Ana, CA 107.9   3.3%
Philadelphia-Camden-Wilmington, PA-NJ-DE-MD 109.1   3.2%
12  Phoenix-Mesa-Scottsdale, AZ 108.3   3.2%
19  Tampa-St. Petersburg-Clearwater, FL 107.1   3.2%
New York-Northern New Jersey-Long Island, NY-NJ-PA 108.0   3.1%
Miami-Fort Lauderdale-Pompano Beach, FL 106.7   3.0%
17  San Diego-Carlsbad-San Marcos, CA 107.5   2.7%
20  Baltimore-Towson, MD 107.9   2.6%
Atlanta-Sandy Springs-Marietta, Georgia Metropolitan Area 106.2   2.4%
11  Detroit-Warren-Livonia, MI 104.9   1.9%
18  St. Louis, MO-IL 107.3   1.9%
8   Washington-Arlington-Alexandria, DC-VA-MD-WV 108.3   1.6%

Q4 2012 PayScale Index highlights include:

 

·      Media & Publishing Jobs overthrew IT Jobs as the job category with the largest annual growth in wages in Q4 2012.

o   With a quarterly wage increase of 2.2 percent in Q4, on top of quarterly wage increases of 1.4 percent in the preceding two quarters, Media & Publishing Jobs experienced annual wage increases of 4.6 percent in Q4 2012, just beating out IT Jobs at 4.4 percent. 

o   After a bumpy ride from 2008 to 2011 that resulted in little to no growth, this job category has been on fire in 2012. 

·      Another winner this quarter is Construction Jobs – not only is new home construction the highest it has been in more than four years, but wage growth is the best it’s been in more than three years: 

o   Annual wage growth for Construction Jobs was tied for third across all job categories for Q4 at 4.2 percent.

   The Construction Industry didn’t perform quite as well relative to other industries, but finally reached wage growth levels higher than its previous peak in Q4 2008. And from Q1 2011 to Q4 2012, wages grew by more than 4 percent.

·      It was a big quarter for Food Service workers as wages in both the job category and industry finally rose above their 2008 peak levels.

o   Food Service and Restaurant Jobs have consistently shown little to no wage growth after a steep drop in late 2008. However, 2012 was a good year for this job category as wages grew each quarter until they finally surpassed their previous peak levels in Q4.

o   Annual wage growth for Food Service and Restaurant Jobs was 3.3 percent in Q4 and annual wage growth for the Food Services and Accommodation Industry was 3 percent – the highest either have been since being tracked by The PayScale Index.

Adds Bardaro:  “There is still no stopping the pay increases for jobs related to energy or technology, particularly highly skilled ones, as they experienced annual wage growth north of 3 percent and, in some cases, north of 5 percent.”

 

About The PayScale Index

The PayScale Index follows changes in total cash compensation for full-time, private industry employees in the United States and Canada. In addition to a US national index and a Canadian national index, it includes separate indices for the following:

·      15 private industries in the U.S. as defined by the North American Industry Classification System (NAICS)

·      20 largest U.S. metropolitan areas, as defined by the Office of Management and Budget (based on the July 1, 2009 population estimates by the United States Census Bureau).

·      Three company sizes in the U.S.: small (under 100 employees), medium (between 100 and 1,500 employees) and large (greater than 1,500 employees).

·      19 U.S. job categories, as defined, in part, by the Standard Occupational Classification (SOC) system.

·      Six largest Canadian metropolitan areas, as defined by the Standard Geographical Classification (based on the July 1, 2010 population estimates by the Canadian Census). 

The PayScale Index utilizes a unique approach to trend measurement. Unlike indices such as the Consumer Price Index, which measures the prices of certain goods and services (periodically updated to reflect changes in buying habits of Americans), The PayScale Index uses data on all private-sector, full-time employees working in a given time period.

 

PayScale has performed a detailed analysis of how various compensable factors, like work experience, education, employment setting and job responsibilities affect pay. This analysis is based on PayScale's extensive data of more than 40 million employee profiles, accounting for 250 compensable factors for more than 12,000 unique job titles, which show how the pay of actual workers varies with each of these factors.

 

Final Analysis: The Sporting Life in 2017

Final Analysis: The Sporting Life in 2017

Three predictions for the coming year on a new arena, an old arena and the Mariners.
| FROM THE PRINT EDITION |
 
 
 
As every first-year business student knows, a city’s economy is not considered “world class” until said city has erected at least four shrines to professional sports and these shrines remain empty and unused most days of the year. Seattle is knocking on the door of world classiness because it already has KeyArena, Safeco Field and CenturyLink Field up and running. Occasionally. Just one more monument to appease the great mass of athletic supporters and we’re there. Hallelujah!
 
It’s only a matter of time because Chris Hansen, the San Francisco rich guy who wants to build a new arena on First Avenue South and bring pro basketball and pro hockey to Seattle, is this close to getting his way. In October, Hansen revealed that he and his investors are now willing to pay the whole honkin’ bill for plopping a new arena into the SoDo neighborhood a block from Safeco Field. He still wants a piece of Occidental Way vacated and also expects some tax breaks from the city, but that’s how rich guys are. (See: Trump, Donald.) Besides, the people who believe we’re not world class until the NBA returns to Seattle are salivating over this deal because it’s the best deal we’re ever going to get
 
Of course, these same people said Hansen’s previous offer, which would have required that $200 million in public money be plowed into a new arena, was also the best deal we were ever going to get. 
 
Hansen’s decision to pay more for his arena places the sports economy clearly in the local spotlight this year. Heaven knows we could use more opportunities to pay $9 for a beer and see millionaire athletes selling Jaguars and BMWs on TV. It’s the kind of economic shot in the arm that only comes around whenever a sports league is in a coercive mood. 
 
And so, in the spirit of this January issue’s “looking ahead” theme, we offer three predictions relating to the regional economy as the Hansen arena intrigue continues to unfold.
 
Prediction 1: Hansen, who has already spent more than $120 million buying up property in the area of his proposed arena, will persuade the Port of Seattle, his arch nemesis in this melodrama, to fold up its tent and send all cargo-handling operations to Tacoma. That decision will pave the way for so many trendy bars and restaurants with names like Kale & Kumquat or Cobblestone & Wingtip that Hansen will be persuaded to create a private streetcar system to connect Pioneer Square with the burgeoning Stadium District. 
 
Prediction 2: The city-owned KeyArena, whose very future is clouded by the Hansen proposal, will announce plans to house up to 10,000 homeless persons every day. Even on days when the Seattle Storm and Seattle University basketball teams need the building, the city believes the Storm and the Redhawks could use the attendance boost, so it becomes a classic win-win.
 
Prediction 3: The Seattle Mariners, who still don’t like the arena proposal, will channel their hostility onto the field of play — and still not win the World Series. (This is called pattern-recognition analysis.) However, always mindful of improving the fan experience — because it’s not whether your team wins or loses, but whether you’re inclined not to press charges for being gouged by a vendor — the Mariners will introduce several new fan-friendly food items, plus mani/pedi stations in the pricey seats and roving loan officers to assist anyone trying to finance the purchase of hot dogs and sodas for a family of four. 
 
JOHN LEVESQUE is the managing editor of Seattle Business magazine. Reach him at john.levesque@tigeroak.com.