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The Indicator from Planet Money · Friday, August 28, 2026

Teacher Pay Penalty Widens, Reaching Record High

A new report from the Economic Policy Institute indicates that public school teachers in the US are earning significantly less than their peers in other professions, a gap that has widened over time. In 2025, teachers earned an average of 74.8 cents for every dollar earned by comparable college graduates in other fields.

personSylvia AlegrettocompanyEconomic Policy Institute

The tape

3 quotes
That is the average wage that public school teachers in the US earned in 2025, compared with similar college graduates working in other professions.
Wayland Wang
Like in 1996, teachers made 6% less than their peers in other professions. In 2024, they made 27% less. That's actually a record.
Wayland Wang
And economist Sylvia Alegretto says this disparity has already taken a toll on recruiting and retaining teachers.
Wayland Wang
Heard on The Indicator from Planet Money — “The teacher pay penalty, Meta's major settlement, and a footwear flop, published Friday, August 28, 2026. Heardvine summarizes and quotes with attribution and timestamps, and links to the original everywhere.
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