"A decade ago, low-income workers saw wages grow at the highest rate of any Americans. Now, the opposite is true, and the gap is widening between how quickly wages increase for wealthy and poorer U.S. households. In a Monday blog post titled "K-shaped economy," Apollo chief economist Torsten Slok warned the growing disparity is yet another sign of today's economy continuing to serve the rich, while poor Americans continue to struggle."
"Slok cited data from the Federal Reserve Bank of Atlanta indicating that for Americans in the lowest-wage quarter, nominal wage growth went from a high of 7.5% in 2022 to about 3.5% today, the lowest in about a decade. While wage growth for all income groups has declined in the last few years, growth for the highest-income quartile has held up better, dipping from a peak of about 5.5% in 2023 to more than 4.5% now, still one percent higher than the lowest-income group."
A decade ago, low-income workers experienced the fastest wage growth among income groups, but that trend has reversed. Nominal wage growth for the lowest-wage quarter fell from 7.5% in 2022 to about 3.5% today, the lowest in about a decade, according to the Federal Reserve Bank of Atlanta. Wage gains for the highest-income quartile declined less, moving from about 5.5% in 2023 to over 4.5% now, roughly one percentage point higher than the lowest quartile. JPMorganChase Institute data show slowing wage growth for millennials and Gen Z, reinforcing a widening K-shaped economic divergence across income levels.
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