Inflation Outpacing Wage Growth For Over 40% Of Americans

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Wage growth for a large swath of Americans is being outpaced by the rate of inflation, according to data from Indeed, which reported people with low- and middle-paying jobs are likely feeling the most pressure.

Purchasing power for 57% of U.S. workers increased last year, according to Indeed, leaving 43% lagging behind the rise in cost of living.

While annual wage growth remains just above the annual rate of inflation, which grew to 2.7% in June, “the gap between the two is the narrowest it’s been in 12 months” Indeed added.

Wage growth has usually remained faster than the pace of inflation during periods of normal market conditions in the last few years, according to data from the Atlanta Fed's wage growth tracker.

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Overall wage growth remains “healthy and above inflation,” Indeed noted, even though many low- and middle-wage jobs have experienced pay increases at or below the pace of inflation.

Jobs in electrical engineering topped Indeed’s list of fastest-growing wages with a “much higher-than-average annual advertised pay growth of 6.3%” Wage growth of electrical engineering jobs was followed by legal (5.1%), marketing (5.1%), project management (4.6%), mathematics (4.5%) and IT operations (4.4%).

Physicians and surgeons led the way in slowest growing wage growth with a 0.8% increase since last year, which was followed by driving jobs (1%). Other slow-growing categories include arts and entertainment (1.2%), software development (1.4%), beauty and wellness (1.6%) and logistic support (1.7%).

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