Idaho’s workers earned notably higher paychecks over the past year, with average hourly wages climbing 4.7 percent from 2024 to 2025, according to data released by the Idaho Department of Labor. The increase placed the state third nationally in wage growth percentage during that period.
The statewide average hourly wage rose by $1.31, pushing the overall average to $29.41 per hour for all occupations in 2025. The median hourly wage also climbed, moving from $22.34 in 2024 to $23.06 last year.
While steady, the 4.7 percent increase represents a slowdown from recent years. Wage growth hit 8.3 percent in 2022-2023 before moderating to 5.1 percent in 2023-2024.
Governor Brad Little framed the gains as evidence of economic vitality. “One of the strongest indicators of a healthy economy is when Idahoans see bigger paychecks and greater take-home pay,” he said.
Employment growth accompanied the wage increases. Idaho added more than 12,000 jobs over the year, representing a 1.5 percent increase in total employment.
Wage growth spread across all seven of Idaho’s Metropolitan Statistical Areas, though gains were not uniform. The southwestern region posted the strongest percentage increase and became the only area to surpass the $30-per-hour average, reaching $30.76 in 2025.
Fast food and counter workers remained the largest occupational group in the state, with roughly 25,000 employed. General and operations managers formed the second-largest group at 24,880 workers.
The wage data offers perspective on Idaho’s economic standing. Idaho closed fiscal year 2026 in the black, carrying $250 million into the new budget cycle, reflecting sound fiscal management at the state level. That financial discipline stands in marked contrast to neighboring states grappling with mounting deficits and spending pressures.
Still, economists note that nominal wage growth must be weighed against cost-of-living pressures. The MIT Living Wage Calculator estimated that a single adult without dependents required an annual income of $49,091 to meet basic expenses in 2026—slightly above the median statewide annual income of $47,970 tracked by the U.S. Bureau of Labor Statistics.
The wage report underscores Idaho’s role as an economic destination. Population growth, business relocation from higher-cost states, and steady job creation have reshaped the state’s labor market over the past few years. Employers have raised wages to attract and retain workers in a competitive environment, a pattern likely to continue as Idaho’s economy expands.