Salary Trends in USA 2025
Wage growth, job market outlook, and compensation changes
Projected Average Wage Growth 2025
Key Salary Trends for 2025
The 2025 job market shows continued wage growth moderating from 2022–2023 peaks while remaining above pre-pandemic levels. Employers project 3.5–4.0% average salary increases, with significant variation by industry, skill set, and role type.
Major trends shaping 2025 compensation include AI/ML skill premiums (+15–25% for relevant roles), healthcare sector growth (+5–7% across most roles), continued remote work normalization with geographic pay adjustments, and skills-based hiring reducing degree requirements in some fields.
Understanding these trends helps job seekers and employees make informed career decisions about which industries to target, which skills to develop, and how to negotiate effectively. For baseline context, see the average salary in the US.
2025 Wage Growth Projections
| Category | Projected Growth | Notes |
|---|---|---|
| Overall US Wages | 3.5–4.0% | Down from 4.5% in 2023–2024 |
| Entry-Level Positions | 3.0–3.5% | Competitive market for talent |
| Mid-Level Professionals | 3.5–4.5% | Skills and experience valued |
| Senior/Executive | 4.0–6.0% | Leadership premium |
| High-Demand Skills (AI/ML) | 10–25% | Supply/demand imbalance |
Wage Growth Context
2025 wage growth of 3.5–4.0% represents a normalization from the exceptional increases of 2022–2023 (5–6%+ in many sectors) driven by post-pandemic labor shortages. Growth now slightly exceeds inflation (projected 2.5–3.0%), meaning modest real wage gains for most workers.
Salary Trends by Industry
| Industry | 2025 Outlook | Key Drivers |
|---|---|---|
| Technology | Stabilizing (+2–4%) | Layoffs ending, selective hiring |
| AI/ML Specific | Strong (+15–25%) | Massive demand, limited supply |
| Healthcare | Growing (+5–7%) | Aging population, shortages |
| Finance | Moderate (+3–5%) | Stable, fintech growth |
| Manufacturing | Growing (+4–6%) | Reshoring, automation |
| Retail/Hospitality | Moderate (+3–4%) | Labor availability improving |
| Construction | Strong (+5–8%) | Infrastructure spending |
Technology Sector
Outlook: Stabilizing after 2023–2024 layoffs
Big tech hiring slowed but specialized roles (AI/ML, security, cloud) remain hot. General software engineering salary growth moderating to 2–4%. Companies more selective, emphasizing experience and impact. Equity compensation remains significant at growth companies.
Healthcare Sector
Outlook: Strong growth (+5–7%)
Persistent nursing shortage, aging population, expanded care access driving demand. Travel nursing premiums declined from pandemic peaks but core nursing, PA, NP salaries continue rising. Healthcare IT combining both sectors for premium compensation.
AI/Machine Learning
Outlook: Exceptional (+15–25%)
Generative AI boom creating unprecedented demand for ML engineers, AI researchers, data scientists with AI specialization. Senior AI roles at top companies: $300K–$500K+ TC. Shortage of experienced practitioners drives premium.
Remote Work Salary Trends
| Work Arrangement | Salary Impact | 2025 Trend |
|---|---|---|
| Fully Remote (SF/NYC rate) | Highest | Less common |
| Fully Remote (National rate) | −10–20% vs. hub | Standard approach |
| Hybrid (2–3 days office) | Full local rate | Most common model |
| Fully In-Office | Full local rate | Increasing in some sectors |
Geographic Pay Adjustments
Most companies now adjust remote salaries based on location. Remote workers in lower cost-of-living areas typically earn 10–20% less than equivalent roles in SF/NYC. Some companies (GitLab model) pay globally standardized rates; others use tiered geographic zones.
Return-to-Office Trends
2025 sees continued push for hybrid work (2–3 days in office) at many large employers. Some companies offer salary premiums for in-office commitment; others require it without premium. Tech sector remains most flexible; finance and professional services trending toward office.
See our remote job salary guide for detailed analysis.
High-Demand Skills and Salary Premiums
| Skill Category | Salary Premium | Example Roles |
|---|---|---|
| AI/Machine Learning | +20–40% | ML Engineer, AI Researcher |
| Cybersecurity | +15–25% | Security Engineer, CISO |
| Cloud Architecture | +10–20% | Cloud Architect, DevOps |
| Data Engineering | +10–15% | Data Engineer, Analytics |
| Healthcare Tech | +10–20% | Health IT, Clinical Informatics |
AI/ML Skills
Largest premium in 2025. Generative AI experience (LLMs, prompt engineering, RAG) particularly valued. Senior ML engineers at FAANG: $350K–$600K TC. Growing demand in non-tech industries applying AI.
Cybersecurity
Consistent shortage drives premiums. CISOs at large companies: $300K–$500K+. Security engineers with cloud experience: $150K–$220K. Certifications (CISSP, CISM) add $10K–$25K.
Inflation Impact on Real Wages
| Year | Nominal Wage Growth | Inflation | Real Wage Change |
|---|---|---|---|
| 2022 | 5.1% | 8.0% | −2.9% |
| 2023 | 4.5% | 4.1% | +0.4% |
| 2024 | 4.1% | 3.2% | +0.9% |
| 2025 (Proj.) | 3.5–4.0% | 2.5–3.0% | +0.5–1.0% |
Real Wage Recovery
After 2022's negative real wage growth (wages grew but inflation grew faster), 2023–2025 shows modest real wage gains. Workers are finally seeing purchasing power increases, though 2022 losses not yet fully recovered for many.
Hiring and Job Market Trends
Skills-Based Hiring
Growing trend: companies removing degree requirements, focusing on demonstrated skills. Major employers (Google, Apple, IBM, Accenture) have reduced degree requirements for many roles. Benefits candidates with bootcamp, self-taught, or alternative credentials.
Contract and Gig Work
Project-based and contract work continues growing. Tech contractors often earn 20–40% more than equivalent salaried roles (without benefits). Platforms connecting skilled workers with short-term engagements expanding.
Internal Mobility
Companies investing in internal mobility as retention tool. Internal candidates often receive 10–15% raises for promotions; external hires typically require 15–25% premium. Career pathing and upskilling programs expanding.
Benefits and Total Compensation Trends
Healthcare Costs
Employer healthcare costs rising 5–7% annually. Some cost-shifting to employees through higher deductibles and premiums. Total compensation increasingly includes healthcare cost as significant component.
Retirement Benefits
401(k) matching remains standard (3–6% typical). Automatic enrollment and auto-escalation increasing. Student loan repayment programs emerging as benefit differentiator.
Flexibility Benefits
Remote/hybrid work policies as compensation component. Unlimited PTO policies expanding (though usage often lower than traditional PTO). Wellness stipends, home office allowances increasingly common.
See our salary negotiation guide for negotiating total compensation.
Salary Outlook by Role Level
| Level | 2025 Outlook | Key Factors |
|---|---|---|
| Entry-Level | Competitive (+3–4%) | College grad supply steady |
| Mid-Level (3–7 yrs) | Strong (+4–5%) | Experience valued, promotions |
| Senior IC (8+ yrs) | Strong (+4–6%) | Technical leadership premium |
| Management | Moderate (+3–5%) | Spans of control increasing |
| Executive | Variable (+2–8%) | Performance-tied |
Frequently Asked Questions
What is the average salary increase for 2025?
Most employers project 3.5–4.0% average salary increases for 2025. This is down from 4.5–5.0% in 2023–2024 but above historical 3% averages. High-demand roles (AI/ML, healthcare, cybersecurity) see higher increases of 5–25%.
Which industries are growing fastest in 2025?
Healthcare (+5–7% wage growth), AI/ML roles (+15–25%), construction (+5–8% due to infrastructure spending), and manufacturing (+4–6% due to reshoring). Traditional tech is stabilizing after layoffs.
Is it a good time to change jobs in 2025?
Depends on your field. Job changers typically earn 10–20% more than internal promotions. Market conditions vary by industry—healthcare and AI skills highly mobile, general tech more competitive. Research your specific role's market before deciding.
How does remote work affect salary in 2025?
Most companies adjust remote salaries by location. Fully remote workers in low-cost areas earn 10–20% less than equivalent SF/NYC roles. Hybrid arrangements typically pay full local rate. Some companies maintain flat national rates regardless of location.
What skills should I develop for higher pay?
AI/ML skills command highest premiums (+20–40%). Cloud certifications (AWS, Azure) add $10–20K. Cybersecurity credentials valuable across industries. Data skills (SQL, Python, analytics) increasingly baseline. Industry-specific expertise often more valuable than general skills.