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Key Takeaways
- A new survey finds that workers feel wages didn’t keep pace with inflation this spring.
- Federal data show that since 2021, average hourly pay has risen by about the same amount as inflation.
The vast majority of American workers say their pay is losing ground to the cost of living, though federal data show it is more of a draw.
A new Monster survey says 93% of workers report their pay isn’t keeping up with rising costs. Just 7% of workers report receiving an inflation-related pay increase this year, according to the 2026 Cost of Living Report, the online job board Monster published Monday.
“This is the third consecutive year workers that have said their wages are falling behind the cost of living,” said Vicki Salemi, a career expert for Monster.
Why This Matters
How workers feel about their pay shapes what they spend, whether they job huntand how hard they push for a raise.
Workers said savings are absorbing the difference they see between price and pay growth. About 85% said they’ve dipped into savings and 42% said they’ve spent a significant share of what they’d set aside.
Those surveyed said they’re also trying to make up the difference by cutting nonessential spending. Meanwhile, more than one-third are leaning on credit or loans, and a similar portion reported reducing retirement contributions.
“We’re seeing people cut spending, use savings, and actively look for higher pay, but most aren’t seeing results,” Salemi said in a written statement.
Even while pay raises have pulled ahead of inflation most months over the last few years, data from the Bureau of Labor Statistics shows, there’s good reason many might not be feeling it.
Increases in wages have outpaced prices in most months since the spring of 2023. But as inflation spiked this spring, pay lost ground in April and May. In June, the average hourly earnings hit $37.64, up 3.5% over the year. The Consumer Price Index rose by about the same amount.
Monster says job hunting has picked up sharply: three-quarters say they’re looking for a higher-paying role, more than last year. But landing a new role isn’t proving easy—58% say it’s harder to find a job as companies cut costs.
While government data doesn’t show as bad an overall picture as Monster’s survey shows workers feel, they’re not imagining the price pressures either. The Iran war continues to cut deep into budgets, with gasoline costing more than a quarter more than a year earlier as of June. The broader energy index rose 15.7%.
Those looking to switch jobs for a pay raise continue to see larger wage gains, with job switchers gaining 4.1% over the year through June, compared with 3.4% for the year, according to the Federal Reserve Bank of Atlanta.
Read the original article on Investopedia
