Americans Lose Their Wages

We’re in a conundrum.

While the job market is currently red-hot and millions of Americans are experiencing a rapid wage growth, their salaries are quickly being eaten away at by the highest inflation in 40 years.

According to Fox, the Labor Department found that the average hourly earnings for all employees surprisingly declined by 3% in May compared to a year ago.

Furthermore, Fox added On a monthly basis, average hourly earnings dropped 0.6% last month, when accounting for the inflation spike. 

So in reality, while workers are getting paid more, they are in reality making less money because of inflation brought on by the Biden Administration.

Senior economist at trade credit insurer Allianz Dan North explained, “Even though wages are growing rapidly, inflation is growing much faster, so workers are actually losing ground. They are effectively getting a pay cut, and that could surely put a drag on the economy.”