In the United States, the income of $100000 per year is still highly attractive and such employees are pleased to be paid such an amount of money. However, the frequency of households earning six figures or more and their distribution across the country by demographics and occupations is still questionable.
Overall Prevalence
The US Census Bureau has reported that if an employee earns $100,000 annually, he or she is among the financial top 20% of earners in the nation. An average of 18% of these households earn a combined income of more than $100k. Those figures point to the fact that although a hundred and twenty thousand dollars-plus annual income is above average, it is still not highly unattainable for today’s average American employee.
You see, $100k+ salaries are not as common as you might think and they depend on several aspects such as the location, industry, education, age, and many others.
By Region and State
Analyzing the income of $100k+, the West and Northeast regions of the USA have a higher income as compared to the total average income throughout the country. California, New York, Massachusetts, and Washington rank highest in having around 25-30% of households earning a minimum of $200,000. In the same respect, states in the Southern region and some parts of the Midwestern region have low average wages with less than 5% of employees earning more than $100,000 annually. The variations that can be attributed to the differences in wages and cost of living between the different regions are also relevant.
By Metro Area
In analyzing major US metropolitan areas, states and cities with the higher percentage of six-figure earners are those that are characterized as high-cost places for living and where various high-wage sectors often reside. About 40% of California households in metro areas like San Jose, San Francisco, and Washington DC have an income of $100,000 and above. However, in the lower-cost metros in the Midwest and the South such as Cincinnati, St. Louis, and Memphis – only 15-20% of families earn above $100K income.
By Occupation
Highly paid employees are mostly white-collar professionals who work in occupations that demand higher education qualifications earning $100000 and above. Traditional careers include physicians, lawyers, engineers, corporate executives, software developers, professors, and financial managers who mostly pay incomes of over $100000. The jobs that can be found in the households are legal, engineering computer, business, and healthcare management staff, and about 30-40% of this staff receives an average income of $100k and above according to BLS data.
On the other hand, lower-paying service industries, retail, food services, manufacturing, and labor positions rarely offer compensation of up to $100k. It is not easy to even earn a six-figure income, let alone if a person does not possess a college education.
By Education
This is evident from the findings which show that the level of education one has plays a significant role in determining whether one will earn 100k per year or not. According to the latest national statistic, less than 5% of employees with only a high school diploma earn more than $100k. For those with some college without a bachelor’s degree, the rate jumps to almost 10%. But it gets worse for the Americans with undergraduate and postgraduate studies, respectively. Superstars consisting of more than 30 percent of workers with a master’s degree and 40 percent of workers with a professional or doctoral degree earn more than $100,000 per year.
By Age
Newer employees are likely to earn less than their older counterparts, and wages are often calculated on a scale that increases as the employees progress through their careers. So, the $100k+ earning demographic is most likely composed of Americans within their most productive and thus highest wage earning ages. Surveying the census data, the 45-64 year group has 25% of its population earning more than 100,000 US dollars annually. For workers who started at ages 20 or younger, that figure is below 5%.
Therefore, let it be clear that $100,000 per year or above can be considered as a paid, comfortable, or even wealthy income depending on the American’s specific life situation, however, it is a very challenging target for the majority, as only 20% of people across the United States achieve this income. Characteristics of professionals with higher education, those who perform highly technical activities, with professional experience; and those who are set in their careers – six-figure remunerations are still unattainable dreams to many. Geographical locations also play a significant role in determining how doable or possible it is to demand $100k+ pay in the current employment landscape.
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