Washington’s average annual wage grew by 6.7 percent in calendar year 2019 to $69,000, according to the state Employment Security Department—representing the largest percentage increase year over year since 1999.
The average weekly wage rose from $1,255 in 2018 to $1,340 in 2019. These figures include only those wages that are covered by unemployment insurance.
Much of the increase was driven by an 8.7 percent increase in total earnings, which grew by nearly $18.5 billion in 2019. Overall, the average number of workers in Washington covered by unemployment insurance grew by just over 59,267 in 2019.
The industries with the largest average wage growth in 2019 were transportation and warehousing, up 7.1 percent; information, up 6.5 percent; and educational services, up 6.4 percent.
The average annual wage is used to calculate unemployment benefits for jobless workers. The minimum weekly unemployment benefit, calculated at 15 percent of the average weekly wage, will increase by $13 to $201, for new claims opened on or after July 5th. At the same time, the maximum weekly benefit, which is the greater of $496 or 63 percent of the average weekly wage, will increase by $54 to $844.
Currently, about 20 percent of unemployment insurance claims are paid the maximum benefit amount, and 10 percent receive the minimum.
In addition to unemployment benefits, the average annual wage is used in computing employers’ unemployment taxes. Beginning in 2021, employers will pay unemployment taxes on the first $56,500 paid to each employee—up from $52,700 in 2020.
The state average wage also is used by the Department of Labor & Industries in calculating worker’s compensation benefits.