According to a report that was issued on Tuesday by researchers from the Federal Reserve Banks of Dallas and Cleveland, more than half of all Americans saw their earnings fail to keep up with inflation between the second quarters of 2021 and 2022. This information was found in the report.
According to researchers who contributed to an article that was published by the Dallas Fed, only 44.6% of workers have seen a decline in their real wages over the course of a year over the course of the past 25 years on average, with the second quarter 2022 rate of 53.4% being the most aggressive since 2011. The median wage decrease for those whose wages went down was 8.6%, which is significantly higher than the average median wage decrease for the preceding 25 years, which was 6.5%, and significantly higher than the typical range of a 5.7% to 6.8% wage decrease.
According to the findings of the study carried out by researchers Robert Rich, Joseph Tracy, and Mason Krohn, “Despite the stronger wage growth due to the tightness of the labor market, a majority of workers are finding their wages falling even further behind inflation.” Although there have been periods in the past 25 years that have experienced episodes that demonstrate either a greater incidence or a larger size of real wage losses, the current time period is unprecedented in terms of the struggle that employed employees face.
Despite stronger wage growth due to tightness of the labor market, workers are finding wages falling even further behind inflation. For workers who experienced a decline in their real wage in Q2 2022, the median decline was 8.6%. https://t.co/EK9iPm8zip pic.twitter.com/C3BvHbPMbW
— Dallas Fed (@DallasFed) October 4, 2022
According to the most recent data from the Bureau of Labor Statistics, real average hourly earnings have been on a downward trend since March 2021 and have continued to fall every month through August 2022. This amounts to a total loss of 17 months. Inflation, on the other hand, has continued to hover close to 40-year highs, with prices having increased by 8.3% year-on-year in August.
"These consequences appear to be the most severe encountered by employed people during the previous 25 years," the researchers said after taking everything into consideration. "Taken together."
The preceding is a summary of an article that originally appeared on DAILY CALLER.
