After dipping for a year below the national average, total compensation costs for private industry workers in South Florida have suddenly soared to the highest level by far among the 15 largest metropolitan areas.
New figures released last week by the U.S. Bureau of Labor Statistics that had been delayed by the federal government shutdown show that South Florida compensation rates rose a startling 5.7% in the year ended in September, far above the national increase of 3.5%.
By way of comparison, the one-year increase in South Florida a year earlier had been 2.2%, while the national increase was approaching 4%.
Across the nation’s largest metropolitan areas, the 5.7% compensation increase in South Florida was followed by 4.7% in Seattle; 4.5% in Houston; 4% in Chicago; 3.8% in New York; 3.7% in San Jose, Minneapolis and Dallas; 3.4% in Philadelphia and Los Angeles; 3.3% in Boston; 3.1% in Phoenix; 2.9% in Atlanta; 2.2% in Washington; and 2.1% in Detroit.
In South Florida, wages and salaries, which are by far the largest slice of total compensation, increased even faster than total compensation, rising 5.9% for the 12 months.
That wage gain was well ahead of second-ranked Houston at 5% and third-ranked Seattle at 4.9%. The lowest gain in wages and salaries among the top metropolitan areas was 1.9% in Washington, DC.
As usual, the Bureau of Labor Statistics did not attempt to explain the compensation disparities between South Florida and the rest of the nation. The Miami area in the study includes Broward, Indian River, Martin, Miami-Dade, Monroe, Okeechobee, Palm Beach and St. Lucie counties.
The annual rise in total compensation in South Florida for the past five years has been 4.1% in 2021, 6.7% in 2022, 5.2% in 2023, 2.2% in 2024, and 5.7% this year.
For wages and salaries alone, the increase in South Florida has been 4.7% in 2021, 7.1% in 2022, 4.9% in 2023, 2.4% in 2024, and 5.9% this year.
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