More than 1 million people across the country earn paychecks of $500,000 or higher, according to a report that analyzed payroll records on millions of salaries paid over the course of a year.
The study titled "High-paying jobs? They’re a dime a dozen," which was done by ADP, a leading management company that provides payroll and other services, concluded that “a substantial number of professionals found in every major metro” earn more than half a million dollars annually. Government data, including the Census Bureau’s American Community Survey, typically obscure the prevalence of hefty paychecks by capping the level of wages reported.
One California metropolis stood out from the rest, the ADP report found. The San Francisco Bay Area has the highest concentration of jobs that pay more than $500,000, “vastly outranking” other major cities. One in 48 jobs there pays $500,000 or more, nearly double the share in Austin, Texas, which has the second-highest concentration.
The Los Angeles and Long Beach region has the 12th-highest concentration of jobs that pay that amount. Slightly less than 1% of employees in Los Angeles and Long Beach earn more than $500,000, while 0.22% earn more than $1 million and 0.06% earn more than $2 million.
The wealthiest neighborhoods in the Los Angeles area include Beverly Hills, Pacific Palisades and Malibu, according to real estate firms.
In the Bay Area, more than 2% of employees earn at least half a million dollars, 0.54% earn at least $1 million and 0.15% earn at least $2 million. New York, Boston and Fort Meyers, Fla., are among the other highest ranked cities for employee wages, according to ADP.
The report attributed San Francisco’s “exceptional concentration” of high earners to Silicon Valley and the tech industry, in which executives and other individuals earn “extraordinary compensation.”
Other highly paid professionals including doctors and lawyers face income restrictions based on how many patients or clients they can serve, the report said. In the tech industry, however, productivity has no such constraints, especially at large companies.
“The Bay Area’s considerable lead likely reflects not just the dominance of tech in its economy and workforce, but also its position as the nucleus for the industry’s top talent and the corporate giants that rely most heavily on their expertise,” the report said.
Although Austin, which landed in second place on ADP's list, is another tech hub, the Bay Area's intense tech focus wasn't the only factor contributing to its singular status. Skyrocketing housing prices in the Bay Area have pushed out middle- and low-income residents, leaving the area’s population to be dominated by those earning more.
Nationally, 0.79% of jobs pay more than $500,000, which accounts for more than a million positions. Remote work has drawn high earners to desirable locations including Honolulu and parts of Florida.
“High earners aren’t confined to one industry or region,” the report said. “Though tech is at the forefront, very high salaries are more prevalent than one might realize.”
ADP collected the payroll data from July 1, 2023, to June 30, 2024, from metropolitan areas with more than 1 million residents.