Washington's Average Wage Grew In 2020 Amid Pandemic Layoffs

OLYMPIA, WA — Washington's average annual wage soared to $76,741 in 2020, as thousands of the state's lowest-paid employees faced layoffs amid COVID-19 restrictions, officials announced Tuesday. The state Employment Security Department calculated the figures based on the wages earned at jobs covered by unemployment insurance.

Employment officials reported average compensation grew by 10.1 percent last year, representing the most significant increase ever recorded. The unusual spike is due to more low-wage earners — like restaurant employees — losing their jobs, while higher-paid workers shifted to work remotely, the state found.

"The higher than normal increase in reported average wages can be attributed to the fact that thousands of lower-paid workers lost their jobs during the pandemic and higher-paid workers remained employed," the Employment Security Department wrote. "While it is common for the average wage to rise during recessions, since lower wage workers are more likely to be laid off than higher paid ones, the shift during the pandemic recession was much more dramatic than during the Great Recession."

Here are the industries that saw the highest wage growth in 2020, as classified by the state:

• Information: +16.9%
• Retail trade: +14.6%
• Arts, Entertainment and Recreation: +14.3%

The state uses the average annual wage to calculate unemployment benefits for jobless workers and the state's Paid Family and Medical Leave benefits. Using the new figures, officials said the minimum weekly unemployment benefit would increase to $295, up by $94, starting with claims filed on or after July 4. The maximum weekly benefit will grow to $929, up by $85.