How much do Idaho small-business workers earn? Not nearly enough, this report indicates
Small businesses in Idaho pay their workers wages well below the national average, according to a new report.
Idaho is ranked third from the bottom in salaries for businesses with 10-19 employees, beating out only Mississippi and West Virginia, the report from Venture Smarter said.
The consulting company analyzed U.S. Census Bureau data released in December 2023 to pinpoint wages in every state for workers in three small-business categories: fewer than five employees; five to nine employees; and 10-19 employees.
Wages in Idaho were far less no matter the number of workers at these businesses:
- The average annual wage at businesses with 10-19 employees was about $38,200, nearly 19% below the national average of about $46,800.
- At businesses with five to nine employees, workers were paid $36,700, about 18% below the national average of just under $44,900. The state also ranked third from the bottom in this category.
- At businesses with fewer than five employees, the average salary was $49,300, about 12% below the national average of $55,800. Idaho fared the best here, ranking No. 23.
Idaho’s minimum wage is $7.25 an hour, the same as the federal minimum wage, and $3.35 an hour for tipped employees.
Worst states for pay at businesses with 10-19 employees:
50. Mississippi, $36,000
49. West Virginia, $36,500
48. Idaho, $38,200
47. Arkansas, $38,500
46. Kentucky, $38,800
45. Montana, $39,100
44. South Dakota, $39,100
43. Oklahoma, $39,100
42. Nebraska, $40,100
41. South Carolina, $40,300
In a Venture Smarter news release with the study, a spokesperson said: “Factors such as the cost of living vary by area, and employers have a social responsibility to ensure they pay adequate and fair wages for their employees’ locations. Awareness of wage disparities also allows businesses to stay competitive when it comes to attracting and hiring skilled workers.”
Massachusetts had the highest-paid workers among the largest group of small businesses Venture looked at. Workers in that state earned an average annual salary of nearly $60,000, or 27% above the nationwide average.
Best states for pay at businesses with 10-19 employees:
1. Massachusetts, $59,600
2. Alaska, $55,500
3. California, $54,100
4. New York, $54,000
5. Connecticut, $53,000
6. New Jersey, $52,000
7. Maryland, $51,700
8. Illinois, $51,400
9. Washington, $51,100
10. New Hampshire, $50,800
