New research has found that since President Joe Biden took office, American workers have seen their real wages fall.
A to learn by the Federal Reserve showed that Americans grappling with rising prices have suffered the sharpest inflation-adjusted wage losses in 25 years.
Over two-thirds of workers say their paychecks haven’t been able to keep up with rising prices.
“We find that the real (inflation-adjusted) wages of the majority of employed workers have not kept pace with inflation over the past year,” the study said. “For these workers, the average fall in real wages is just over 8.5%.”
“Taken together, these outcomes appear to be the worst that employed workers have faced in the past 25 years,” the researchers said.
Also read: Ouch — Jeff Bezos slams Biden for blaming gas stations: Here’s what the Amazon founder said
“For the 53.4% of those workers in the second quarter of 2022, the median decline (i.e. half of the declines were larger and half were smaller) in real wage growth was 8.6%,” the study said.
According to the report, the average median decline over the past 25 years is 6.5%, while the natural decline in wages has typically ranged from 5.7% to 6.8%.
“While there have been episodes over the past 25 years that have shown either a greater frequency or magnitude of real wage declines, the current period is unprecedented in terms of the challenges faced by employed workers,” the researchers added.
The consumer price index rose by 8.6% compared to the second quarter of last year at the same period this year.
Photo: Created with an image by jlhervas on Flickr.