Former President Donald J. Trump wants to “Make America Prosperous Again.” That was the theme of the first day of the Republican National Convention. Economic policy, inflation, regulation and trade deals were the focus of Monday’s speech, according to the Republican Party.
Are wages keeping up with inflation? Are Americans on the path to getting wealthy? Here’s what we found:
The average hourly wage for employees rose year over year in June. Wages rose 3.9% between June 2023 and June 2024, growing faster than the rate of inflation, according to the Bureau of Labor Statistics. While this news is beneficial for employees, many Americans are still feeling the strain of the rising cost of living.
Wages outpace inflation
Inflation has risen sharply, but wages have risen even faster.
The Consumer Price Index, which measures changes in the prices of goods and services, has risen 20.8% since the pandemic began. According to the Bureau of Labor Statistics. During the same period, average hourly wages increased by 22.3%.
It’s normal for prices to rise annually across the U.S. economy, and a little bit of inflation is a sign of a healthy economy. Bankrate reportedA little bit of inflation can encourage business growth through higher employment and consumer wages.
The Federal Reserve currently targets an annual inflation rate of 2%.
CPI Report: Inflation slowed more than expected in June due to falling gasoline prices and rising rents
Will wage increases cover the rising cost of living?
According to the survey Bankrate According to the survey, nearly two-thirds of Americans saw a wage increase between October 2022 and the end of October 2023. About 38% said they got a raise and 16% said they got a higher-paying job.
According to the survey Bankrate The following is known between October 2022 and the end of October 2023:
- About 66% of Americans have seen wage increases at some point.
- Approximately 38% responded that they received a pay increase.
- 16% got a higher paying job
While price increases for common purchases have slowed or even reversed, few sectors of the economy are noticeably lower in price than they were before the pandemic, and average wages have risen slightly above the rate of inflation, though not for all households.
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Among workers surveyed who saw a pay increase, only a third said their income matched or exceeded the increase in household spending due to inflation.
Experts say people who work in retail and food service are especially vulnerable to inflation.
Bankrate researcher Sarah Foster told NBC:“These (service industry jobs) are low-wage industries, and while they may technically be beating inflation, they are also low-wage sectors that were likely living payday to payday even before inflation spiked.”