Washington’s average wage nears $59,000 in 2016

Washington’s average annual wage grew by 4-point-8 percent in 2016 to just under 59-thousand dollars, representing the largest percentage increase year over year since 2007.

According to the state Employment Security Department, the average weekly wage rose from 1-thousand-82 dollars in 2014 to $1,133 in 2016.  Those figures include only those wages covered by unemployment insurance.

Much of the increase was driven by a more than 7 percent increase in total earnings, which grew by nearly $12.5 billion in 2016.

The industries with the largest average wage growth in 2016 were retail trade; information; and real estate, rental, and leasing.

The average annual wage is used to calculate unemployment benefits for jobless workers.  The minimum weekly unemployment benefit will increase by $7 to $169 for new claims opened on or after July 3rd.  At the same time, the maximum weekly benefit will rise by $32 to $713.  Currently, about 20 percent of unemployment insurance claims are paid the maximum benefit amount, and 10 percent receive the minimum.

In addition to unemployment benefits, the average annual wage is used in computing employers’ unemployment taxes.  Beginning in 2018, employers will pay unemployment taxes on the first $47,300 paid to each employee — up from $45,000 in 2017. (Washington Employment Security Dept.)