"From 2020 to 2024, consumer prices for things like housing, groceries, energy, and everyday essentials climbed 21%, as measured by the consumer price index. During that same period, the average American worker's pay rose 18%, from about $64,000 to $75,600, according to figures from the Bureau of Labor Statistics."
"Those differences illustrate what many Americans have experienced: Inflation erased much of the apparent progress of wage increases, according to a recent analysis by MyPerfectResume, an online resume building site. In fact, the typical U.S. worker is now earning approximately 2.6% less in real terms-after adjusting for inflation and cost of living-than in 2020, the study found."
""The findings highlight a crucial truth: A high-paying job doesn't automatically mean a higher standard of living," Jasmine Escalera, a certified career coach who provides career advice for MyPerfect Resume, wrote in the report. "The nation got a pay raise on paper, but a pay cut in reality.""
From 2020 to 2024, consumer prices for housing, groceries, energy, and everyday essentials rose about 21%, while average worker pay increased roughly 18%, from about $64,000 to $75,600. Those shifts left the typical U.S. worker with approximately a 2.6% decline in real purchasing power after adjusting for inflation and cost of living. Only nine states recorded net real wage gains over that period. Wage gains on paper were largely offset by higher prices, reducing household purchasing power. Inflation is projected near 2.7% in 2025 and about 2.9% in 2026, suggesting continued pressure on real incomes.
Read at Fast Company
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