Californians are increasingly frustrated with economic conditions largely driven by diminishing real wages amidst rising living costs. A study analyzing wage data from late 2020 through 2024 revealed that while nominal pay increased in certain areas, the growth was consistently overshadowed by rampant inflation. In the Inland Empire, wages rose 15% but were dwarfed by a 22% surge in living costs, leading to a net decline in purchasing power. Similarly, both Los Angeles and the Bay Area faced significant real wage erosion due to inflation consistently outpacing wage increases, contributing to a pervasive sense of economic unease among residents.
In the Inland Empire, wages grew by 15% from 2020-2024, but a 22% living cost surge led to a buying power decrease of 5.6%. Despite challenges, this was the smallest decline in California.
In contrast, Los Angeles and Orange counties experienced a 6.1% real wage decline and the Bay Area faced a 7.2% decrease as inflation outpaced wage growth.
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