Start budgeting now: Employers across the US are planning to raise salaries by an average of 3.5% in 2025, according to a new survey.
That’s just the average across all industries polled, however, and not all industries are increasing pay equally in the next year.
The survey breaks the numbers down further, so you can see how well your own industry is doing. Just three categories will have salary increases averaging over 4% — Government, Construction, and Engineering and Science.
What’s the Average Salary Increase for Your Industry in 2025?
Government, engineering, and science positions will increase pay the most on average, while education workers are among those who will see their talents rewarded the least, averaging just 3%. See if you can find your own industry in the stats below.
Here are the fifteen main categories that were polled, alongside the average percentage that pay will increase for non-management employees within that industry segment:
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- Healthcare and Social Assistance: 3.6%
- Manufacturing: 3.3%
- Nonprofit: 3.2%
- Agencies & Consultancies: 3.8%
- Real Estate and Rental and Leasing: 3.4%
- Construction: 4.1%
- Retail & Customer Service: 3.1%
- Education: 3.0%
- Technology (including software): 3.7%
- Energy & Utilities: 3.5%
- Engineering & Science: 4.2%
- Finance & Insurance: 3.7%
- Food, Beverage & Hospitality: 3.4%
- Government: 4.6%
- Transportation & Warehousing: 3.5%
The survey also tracked the actual pay increases that we’ve seen in 2024 so far: These average 3.6% across the US and 3.4% across Canada.
For more breakdowns that include sectors, US regions, and even US states, check out the full study from Payscale.
Don’t Get Trapped in a Dry Promotion
2025 is still a long way off. As you prepare your own career goals, keep salary increases in mind.
Plenty of employers would be happy to skip the pay raise conversation entirely, if the dawn of “dry promotions” is any indicator. The term refers to promotions that don’t come with a salary increase to justify the extra responsibilities.
According to the latest data from the Consumer Price Index, the cost of living in the US rose 3% between June 2023 and June 2024. If you aren’t getting salary increases that match that price hike, you’re effectively getting a salary reduction.
We’ve written a guide to the ins and outs of negotiating salary increases. Check it out, and you might pick up a few pointers that can help you out in 2025.
