● Median household income in Phoenix was $77,041 (2023),up 3.9% compared to 2022 ● Phoenix’s cost of living is ~4% below the U.S. average, but housing affordability is tightening due to population and growth ● Median rent for a two-bedroom is around $1,580/month Why this impacts salary: Phoenix’s relatively lower living costs attract employers, but as housing demand surges, rising costs will force wages higher to maintain competitiveness. Cost of Living Insights ● Arizona’s minimum wage (2025): $14.35/hour, higher than the federal baseline ● Right-to-work laws limit union influence, but rising pro-labor sentiment nationally (e.g., captive audience meeting bans in other states) could spread. ● Federal incentives (like the CHIPS Act) are actively fueling semiconductor expansion in Phoenix, impacting labor demand. Why this impacts salary: Lower wage floors give employers short-term flexibility, but federal incentives and labor momentum raise long-term wage pressure. Legislation Insights ● Phoenix is home to ~154,000 advanced manufacturing jobs, ranking #4 in the U.S. for semiconductor employment and #2 for space & defense manufacturing ● The metro added 15,000+ new manufacturing jobs in 2023, leading the nation in manufacturing job growth ● Despite this, Arizona’s manufacturing employment has recently declined by 2.3% year-over-year, signaling headwinds Why this impacts salary: Strong long-term growth and short-term labor tightening create pressure to raise wages and retain skilled talent in an increasingly competitive market. Phoenix Insights ● The average manufacturing wage in Phoenix is $24.77/hour, with a range from $13.84 to $34.37 depending on skill level ● Production workers average ~$19.10/hour (Indeed) or around $49,154 annually (~$24/hour) ● Advanced technical roles (semiconductor, aerospace) typically pay significantly above these averages, creating wage competition. Why this impacts salary: High variation between entry-level and advanced technical wages compresses pay bands upward, forcing employers to adjust compensation strategies. Wage Insights Request A Custom Salary Guide