'That raise meant nothing': Inflation is wiping out pay

'That raise meant nothing': Inflation is wiping out pay increases for most Americans [View all]

“That raise meant nothing,” said Stehlik, 23, whose roommate works at the same hotel. “I’ve got student loans. My roommate’s got medical debt. Most of my co-workers work two or three jobs, and they’re still having difficulty making ends meet.”

After years of barely budging, wage growth is finally at its highest level in decades. A global pandemic, combined with swift government stimulus and unexpected labor shortages have put workers in the driver’s seat, giving them the kind of negotiating power they had never imagined.

But in an unexpected twist, the same strong economic recovery that is emboldening workers is also driving up inflation, leaving most Americans with less spending power than they had a year ago.

Although average hourly wages rose 4.7 percent last year, overall wages fell 2.4 percent on average for all workers, when adjusted for inflation, according to the Labor Department.

Read more: www.washingtonpost.com/business/2022/01/22/wages-inflation/