Inflation Is Eroding American Workers’ Wages: Federal Reserve
Most workers in the United States have seen their wages fall behind inflation in the past year, according to a recent report by the Federal Reserve Bank of Dallas.
The Fed calculates that 53.4 percent of the American workforce saw their real wages decline between the second quarter of 2021 and second quarter of 2022, the Oct. 4 research report said. Real wages refer to inflation-adjusted wages.
“For the 53.4 percent of such workers in second quarter 2022, the median decline (that is, half of the declines were larger and half smaller) in real wage growth was 8.6 percent,” the report said.
“The average median decline over the last 25 years is 6.5 percent, with real wage declines typically falling in the range of 5.7 to 6.8 percent,” the Fed said….