New research finds that since President Joe Biden took office, American workers have seen a drop in their real wages.
A study by the Federal Reserve Bank has revealed that as Americans are struggling with soaring prices, they have suffered the steepest loss in wages adjusted for inflation in 25 years.
Over two-thirds of workers report their paychecks have been unable to keep up with rising prices.
“We find that a majority of employed workers’ real (inflation-adjusted) wages have failed to keep up with inflation in the past year,” the study said. “For these workers, the median decline in real wages is slightly more than 8.5%.”
“Taken together, these outcomes appear to be the most severe faced by employed workers over the past 25 years,” the researchers said.
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“For the 53.4% 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%,” the study said.
According to the report, the average median decline over the last 25 years is 6.5%, while natural wage declines typically dipped between 5.7% and 6.8%.
“While the past 25 years have witnessed episodes that show either a greater incidence or larger magnitude of real wage declines, the current period is unparalleled in terms of the challenge employed workers face,” researchers added.
The Consumer Price Index has soared 8.6% from the second quarter of last year compared to the same period this year.
Photo: Created with an image from jlhervàs on Flickr.
Image and article originally from www.benzinga.com. Read the original article here.