Worker Pay Isn’t Keeping Up With Inflation Once Again

Live updates

1. 29d ago

   US worker pay gains stall as inflation surges

   US workers' pay gains have stalled, and in some cases, have effectively taken a pay cut due to inflation. The current state of worker pay and inflation is a concerning trend, with many Americans struggling to keep up with rising costs. Pay raises have significantly decreased, with Southern California seeing a 9-year low in pay raises. Workers are falling behind as inflation outpaces wage growth.

   Why it matters

   The issue of stagnant worker pay and rising inflation has significant implications for the US economy and individual households. As inflation continues to surge, workers are struggling to keep up with the increasing costs of living. This trend has been ongoing, with some workers experiencing their biggest raises in 40 years, only to have most of it taken away by inflation.

   What is confirmed

   • US workers' pay gains have stalled
   • Inflation has taken most of the pay raises
   • Southern California pay raises have sunk to a 9-year low
   • Americans have effectively taken a pay cut

   What to watch next

   • July CPI data release
   • Upcoming wage growth reports
   • Federal Reserve's response to inflation
   Sources used for this update (7)

   1. abcnews.com — Inflation surge has squeezed shoppers. Sluggish pay has made it worse
   2. NBC News — U.S. workers’ pay gains have stalled
   3. CNBC — Americans have effectively taken a pay cut. 5 financial tools to make your dollars go further
   4. cepr.net — July CPI Comes in on Target: A Quick Note on Wages and Prices
   5. CBS News — Americans got their biggest raises in 40 years. Inflation took most of it.
   6. The New York Times — As Inflation Eats Up Pay Gains, Workers Fall Behind
   7. The Cool Down — Southern California pay raises sink to 9-year low as inflation outpaces wages
   confidence 85%