Real Median Earnings and Annual Percent Change

What is it and why does it matter?

Real median earnings measures the 50th percentile of all person earnings - or income obtained in return for labor or services. The median value is the middle value if all earnings are sorted from lowest to highest. The Census Bureau measures earnings as pre-tax income, including: wages, salaries, net income (gross receipts minus expenses) from self-employment, commissions, tips, and cash bonuses. It excludes the value of noncash benefits, like employer contributions to health insurance and Medicare and Medicaid payments. The earnings are adjusted for inflation. Tracking real median earnings provides insight into the largest source of income for most households. Changes to real median earnings tell us whether workers' incomes are growing or declining.

Latest Southeast Michigan trend:

Between 2022 and 2023, the region's real median earnings decreased by increased by $45, or 0.2%; real median earnings now stand at $45,422. Since 2019, real median earnings increased by 6.2%, or at an annual rate of 1.5%.