Inflation Is Eroding American Workers’ Wages: Federal Reserve

Contact Your Elected Officials
The Epoch Times Header

Most workers in the United States have seen their wages fall behind inflation in the past year, according to a recent report by the Federal Reserve Bank of Dallas.

The Fed calculates that 53.4 percent of the American workforce saw their real wages decline between the second quarter of 2021 and second quarter of 2022, the Oct. 4 research report said. Real wages refer to inflation-adjusted wages.

“For the 53.4 percent of such workers in second quarter 2022, the median decline (that is, half of the declines were larger and half smaller) in real wage growth was 8.6 percent,” the report said.

“The average median decline over the last 25 years is 6.5 percent, with real wage declines typically falling in the range of 5.7 to 6.8 percent,” the Fed said.

The only other periods during the past 25 years when the decline in real wages was more severe than in the second quarter of 2022 were during the Great Recession around 2008, and in 2015, which were also the result of inflation turning negative.

The proportion of workers with negative real wage growth spiked to 55.5 percent during post-COVID-19 recovery and is currently at 53.4 percent. The last time the percentage was this high was in 2011. “The current time period is unparalleled in terms of the challenge employed workers face,” the Fed wrote.

The 12-month Consumer Price Index (CPI), a measure of inflation, stood at 8.3 percent in August according to data from the U.S. Bureau of Labor Statistics (BLS). Annual inflation has remained above 7.5 percent for every single month this year.

A Sept. 13 BLS news release calculated seasonally adjusted real average hourly earnings of U.S. employees to have fallen by 2.8 percent between August 2021 and August 2022.

Living Paycheck to Paycheck

The Fed has been raising interest rates as a measure to reign in inflationary pressures as well as wage growth. Some policymakers are especially worried about a wage-price spiral, a situation in which higher prices push up wages which then pushes up prices even more.

By Naveen Athrappully

Read Full Article on TheEpochTimes.com

The Epoch Times
The Epoch Timeshttps://www.theepochtimes.com/
Tired of biased news? The Epoch Times is truthful, factual news that other media outlets don't report. No spin. No agenda. Just honest journalism like it used to be.

Trump’s Middle East Triumph is Worth Celebrating Even As Peace Remains Elusive 

President Trump’s bold foreign policy defies globalist appeasement, showcasing unwavering American strength and decisive leadership on the world stage.

Are conservatives fighting a fiction of woke?

Wokery, it hurts to say it, is too disorganized to have an organized cosmology or doctrine of metaphysical belief.

Illinois Democrat Offenders Reveal Party

The crime of J.B Pritzker and Brandon Johnson in this episode of American history is called subversion at the least , but could be as serious as treason.

Inside the Public School Librarian Jihad to Keep Transgender Propaganda on Shelves

Public school librarians are doing all they can to keep child tranny propaganda flowing directly into the malleable minds of their charges.

Five Reasons Why The Latest Czech Elections Were So Important

Populist-nationalist politician Andrej Babis is poised to return to the premiership after his party's victory. Here are 5 reasons why this is so important.

New York AG Letitia James Indicted on Federal Charges

New York Attorney General Letitia James was indicted by a grand jury on federal charges, according to an indictment on unsealed on Thursday.

6 Ways Vaccine Policy Has Changed Under RFK Jr.

Health Sec RFK, Jr. and officials at the HHS changed recommendations and policies for multiple vaccines, including shots against COVID-19 and measles.

Journalists Recount Antifa Violence in Roundtable With Trump

President Trump met at the White House with journalists attacked by the newly designated terrorist group Antifa, joined by Cabinet officials for a roundtable.

IRS to Furlough 34,000 Employees as Government Shutdown Halts Treasury Operations

The IRS said in an emergency message to staff that it will furlough more than 34,000 employees starting on Oct. 8 due to the government shutdown.

Trump Says He May Invoke Insurrection Act in Portland If Necessary

President Donald Trump on Oct. 6 said he may consider invoking the Insurrection Act in Portland, Oregon, if necessary.

Trump: All Medium, Heavy Duty Trucks Entering US Will See 25 Percent Tariff on Nov. 1

President Trump announced on Monday that all medium and heavy-duty trucks entering the United States will see a 25 percent tariff starting on Nov. 1.

Treasury Names Social Security Commissioner as CEO of IRS

Treasury Sec. Scott Bessent announced that Frank Bisignano, the head of the Social Security Administration (SSA), will also serve as CEO of the IRS.

Agencies Terminated, Descoped 94 Wasteful Contracts With $8.5 Billion Ceiling Value, Says DOGE

Various federal government agencies have terminated and descoped 94 wasteful contracts over the past five days, DOGE said in an Oct. 4 post on X.
spot_img

Related Articles

Popular Categories

MAGA Business Central