Wages climb 6 percent in Nashville in first quarter, exceeds nation

Jamie McGee | The Tennessean

Average weekly wages in Davidson County grew by 6.2 percent in the first quarter of 2018, compared to the same period last year, significantly outpacing the U.S. average wage increase of 3.7 percent.

"That’s a big deal," said David Penn, associate economics professor at Middle Tennessee State University. "That is more double, almost three times the rate of inflation."

The county was 19th in the country for its wage growth, outpacing Travis County in Texas, where Austin is located and Mecklenburg County in North Carolina, home to Charlotte.

Wage gains have been under pressure even as the country, state and city have seen unemployment rates fall. Nashville's unemployment rate fell to a record 2.2 percent in April, before increasing to 3.2 percent in June.

Average weekly wages increased to $1,228 in Davidson County in the first quarter, compared to $1,152 nationally.

The world’s richest people are getting richer According to an annual World Wealth Report.

"The extremely low unemployment rates are pushing up wage rates," Penn said. "Employers are paying more to both retain the workers they have and to attract additional workers.... The labor market is finally catching up to supply and demand."

While a six percent increase may not be sustained in the coming quarters, Penn said he expects substantial growth to continue.

Peoria, Ill., had the highest wage rate increase in the first quarter at 23.8 percent. San Francisco experienced a 10 percent increase as workers earned $2,485 weekly, on average, and Seattle also increased 10 percent to $1,761.

Reach Jamie McGee at 615-259-8071 and on Twitter @JamieMcGee_.