Florida has experienced a 27.3 percent increase in average earnings since 2019, ranking among the top three states for wage growth, driven by a competitive labor market, an influx of remote workers, and population growth.

Florida has emerged as one of the leading states in the U.S. for wage growth since 2019, with average earnings increasing by 27.3 percent, placing it among the top three states in the metric.

An analysis of Bureau of Labor Statistics data conducted by Stateline’s Tim Henderson attributes Florida’s wage growth to several factors, including a competitive labor market and the influx of remote workers from higher-income states such as New York. Such workers, particularly in sectors like finance, have been attracted to Florida by its favorable living conditions and lower cost of living, effectively bringing higher salaries into the state’s economy.

“Florida’s consistently low unemployment rate, which has remained below the national average since 2017, has intensified competition for skilled labor, driving up wages,” Hector Sandoval, director of the Economic Analysis Program at the University of Florida’s Bureau of Economic and Business Research, told the publication.

The state’s wage growth is not solely driven by its appeal to remote workers, as a broader trend of population growth and increased demand for labor has pushed employers to offer higher compensation to attract and retain employees. This pattern is similar to what has been observed in states like Montana, which is one of the only other states to see significant increases.

However, while Florida’s wage growth is a positive economic indicator, there are concerns about its sustainability, the analysis noted. Rapid wage increases may slow as the economy stabilizes post-pandemic, and inflation continues to affect real earnings.

States like Montana, where wages have surged by 28.3 percent, New Hampshire (28 percent), Washington (27.2 percent), and Maine (26.7 percent) have all recorded significant wage increases, which were also attributed to an influx of remote workers and local labor markets, particularly in areas that had lower wages before the pandemic.

In contrast, some states have experienced more modest wage growth, with increases hovering around the national inflation rate of 19.3 percent, including North Dakota (16.8 percent), Wyoming (17.5 percent), Connecticut and Michigan (18.1 percent), and New Jersey (18.2 percent).