How Do Wages Compare to Inflation?

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American workers have been losing ground for more than two years. Wage increases were far below inflation. This left many either living paycheck to paycheck or on credit cards.

Although inflation is down from 2022, workers are finding themselves playing catch up with limited funds. Are wages currently keeping up with inflation? And what is in store for American workers?

Wage Increases Were Low 2021–22

Compared to inflation, the American worker saw low wage increases in 2021 and 2022. According to the Society for Human Research Management (SHRM), the median salary increase for 2021 was 3 percent.