Manhattan Witnesses Most Significant Weekly Salary Increases, Yet It’s in Kansas

Manhattan salary takes center stage in a surprising twist in the competition for significant weekly pay gains, but this is not the Manhattan one might expect. Manhattan, Kansas, a city of around 55,000 residents, has claimed the top spot among 396 metropolitan areas. In December, it experienced a remarkable 34% surge in weekly paychecks compared to the previous year.

Economic Catalyst: Kansas State University’s Impact

Driving this unexpected economic upswing is the presence of Kansas State University, the largest employer in Manhattan, Kansas. Despite experiencing rapid wage growth, the city’s weekly earnings still remain below the national average of $995. This trend is evident not only in this city but also in other cities that rank within the top 10 for wage acceleration.

“Kansas State University fuels Manhattan’s economic boom, yet wage growth lags, challenging parity with the national average,” Bloomberg.

Contrast in the Big Apple: NYC’s Paycheck Downturn

In stark contrast, the New York City metropolitan area experienced a 0.6% decline in average paychecks. In December, the average settled at around $1,251. Additionally, the city faces one of the highest unemployment rates among large metros. This provides a sharp contrast to the prosperity witnessed in Manhattan, Kansas.

National Challenge: Paychecks vs. Inflation

The comprehensive data on weekly earnings, reflecting workplace locations rather than residential addresses, reveals a nationwide challenge. In most major cities, paychecks failed to keep pace with the inflation rate. Among the top 10 largest metro areas by population, only Houston and Washington, DC managed to surpass the December annual inflation rate of 3.4%, while Chicago saw a 0.4% decline in wages.

Economic Landscape Shift: Rising and Falling Metros

In December, 273 metros witnessed an increase in average weekly earnings, with Bismarck, North Dakota, making noteworthy advancements and joining the top 10 highest-paying metros, surpassing the median Manhattan salary. Conversely, 120 metros saw a decline, and three remained unchanged compared to the previous year. Notably, Huntsville, Alabama ascended from the 10th to the seventh spot in weekly wages.

Perennial Leaders: San Jose, San Francisco, and Midland, Texas

Despite the economic surprises in Manhattan, Kansas, San Jose and San Francisco in California, along with Midland, Texas, continue to lead in sizeable paychecks. These cities consistently maintain their positions at the forefront of high-earning locales. San Jose, situated in the costly state of California, maintains its top position with an average weekly paycheck of almost $1,800, equivalent to an annual income of roughly $94,000. This unforeseen turn in the wage narrative underscores the varied economic landscapes found across the United States. Smaller cities are surpassing their larger counterparts in terms of wage growth, revealing a nuanced and diverse economic reality.

“Smaller cities like Manhattan, Kansas, defy economic norms, surpassing larger counterparts in wage growth and resilience,” according to Barron’s.