● Phoenix’s cost of living index ranges from 107–110, driven primarily by housing and population growth. ● Median rent averages $1,750–$1,900/month, with sustained demand across suburban and urban markets. ● Housing affordability continues to influence wage expectations, particularly for early-career and mid-level roles. Why this impacts salaries: Cost of living pressures push employers to raise starting pay and adjust wage bands to remain competitive for early-career and mid-level talent. Cost of Living Insights Arizona Industrial Commission – 2026 Statewide ● Effective January 1, 2026, Arizona’s statewide minimum wage increases to $15.15/hour, adjusted annually based on inflation. ● Applies to most employers statewide, with required workplace postings and payroll updates to reflect the new rate. ● Employers must ensure compliance across all covered employees, including reviewing tipped wage credits and exemptions. Why that impacts salary: Raises baseline pay expectations statewide and increases wage compression pressure for entry-level and hourly roles. Arizona Proposition 206 – Paid Sick Time Accrual Adjustments (2026) ● Effective January 1, 2026, paid sick time costs increase as higher minimum wages raise leave accrual value. ● Employers with 15+ employees must allow up to 40 hours annually, while smaller employers allow up to 24 hours, with accurate tracking required. ● Paid sick time must be available for qualifying health and family needs. Why that impacts salary: Raises total compensation costs beyond base wages and affects hourly labor budgeting, especially for entry-level roles. Legislation Insights ● Manufacturing employs 180,000 workers statewide, with Phoenix as a major hub for semiconductors, aerospace, and advanced manufacturing. ● Large-scale capital investments continue to drive demand for engineers, technicians, and skilled production workers. ● Persistent labor shortages in advanced manufacturing place upward pressure on wages. Why that impacts salary: Industrial and advanced manufacturing demand accelerates wage growth for engineers, technicians, and skilled production workers, creating upward pressure across related support and administrative roles. Phoenix Insights ● The Phoenix metro labor market supports an average hourly wage of $30/hour, reflecting a diversified economy. ● Entry-level office, warehouse, and healthcare support roles commonly range from $17–$22/hour. ● Professional, technical, and specialized roles often exceed $80,000–$100,000 annually, increasing wage stratification. Why that impacts salary : Wage stratification is increasing, as entry-level roles rise modestly while professional, technical, and specialized positions see sharper pay growth driven by competition and skill scarcity. Wage Insights Request A Custom Salary Guide