Newly released data shows that two out of the top three states for average hourly wage growth in the nation are in our region. This is good news for consumers when considering regional purchasing power.
Montana came in with the second-highest increase in the country, just behind Kentucky. In 2024, the Treasure State had an average wage of $27.96, and in 2025, that number rose to $29.27. Its top private sector industries include health care, retail trade, and construction. Companies are continuing to make the move from states with high regulatory burdens to states like Montana that embrace a business-friendly regulatory environment.
A recent example is the semiconductor manufacturer Eshylon Scientific relocating to a new facility in Bozeman from California. According to an analysis of the most recent purchasing power data from the Tax Foundation, $100 in non-metropolitan Montana has the actual purchase worth of $111.53. This context is important when comparing it with other states like Washington that have a higher average wage but are more expensive for consumers.
Idaho came in third in wage growth, with $28.10 for an average wage in 2024, increasing to $29.41 in 2025. The Gem State’s non-metropolitan $100 purchasing power was even better than Montana’s at $114.01.
Idaho Governor Brad Little commented on the achievement, “One of the strongest indicators of a healthy economy is when Idahoans see bigger paychecks and greater take-home pay. Rising wages mean more opportunities for families, more confidence for workers, and more prosperity in communities across our state. Idaho’s continued wage growth reflects the strength of our economy and our commitment to creating an environment where businesses can thrive and workers can earn more.”
Along with new businesses moving from other states, existing companies like Micron are reinvesting into Idaho and expanding operations. The Boise metro has added roughly 8 million square feet of industrial buildings since 2022, which is four times the amount of the prior five-year period.
Wyoming’s average hourly wage in 2024 was $29.20, increasing to $30.18 in 2025. Even though Wyoming isn’t in the top three for average wage growth, the increase signals that its economy is staying active and productive. The real purchasing power of $100 in the Cowboy State is $110.31. Wyoming also continues to see low unemployment around 3% and has high-paying jobs with a big concentration in the energy and natural resources field.
Washington State’s 2024 hourly wage was $39.10 and increased to $40.14 in 2025. While the higher overall average wage may seem impressive, $100 in Seattle has the real purchasing power of only $88.50. There are many poor policy decisions policymakers have made that lead to a lack of purchasing power, but one of them is imposing the highest minimum wage in the country at $17.13 an hour, with an even higher minimum wage of $21.30 in Seattle.
When the government meddles in the market like this, it can create the illusion that pay is good even though, in reality, policies have dramatically increased the price of everything else in the area. Because of the poor tax and regulatory environment in Washington, employers continue to warn they are looking to set up shop elsewhere.
It’s no coincidence that the top states in the country for growing hourly wages embrace limited regulations, prioritize tax relief, and favor a small government approach. Combining growing wages, affordable purchasing power, and a favorable business climate means higher productivity and economic growth.
A good lesson to learn from this data is that policies have consequences. Idaho, Montana, and Wyoming show that companies are continuing to provide high-value jobs and invest more in those states, while Washington’s economic future is facing self-inflicted headwinds.
Sam Cardwell is a Policy Analyst for the Mountain States Policy Center, an independent research organization based in Idaho, Montana, Washington and Wyoming. Online at mountainstatespolicy.org.
