U.S. Workers Face Financial Strain Despite Wage Increases Amid Rising Costs
A recent analysis by MyPerfectResume reveals that although U.S. workers have seen an increase in their wages, the rising cost of living has effectively diminished their purchasing power. Between 2020 and 2024, the average annual wage increased by 18 percent, from approximately $64,000 to $75,600. However, consumer prices rose by about 21 percent during the same period, resulting in a decrease in real spending power. This means that a dollar in 2024 is equivalent to just 82 cents in 2020. The study highlights that, after adjusting for inflation, the typical worker is earning 2.6 percent less in real terms than four years ago. The rising costs of housing, groceries, energy, and other essentials have further strained household budgets, leading many workers to take on side jobs to make ends meet.