US inflation wipes out workers' wage gains

After months and years of budging, the wages of American workers have risen. However, the same force that drove wages up has also shot inflation up, almost negating the wage gains by most American workers. Wage gains at their highest levels in decades in the country. The pandemic, swift government stimulus and labor shortages have all given workers the power to negotiate. But the same economic recovery has left workers with less spending power than they had a year ago. 

Ty Stehlik, a front-desk hotel employee says they pleaded for a raise all through the pandemic and finally received an extra $1 per hour to make $15. But prices for rent and food have shot up so much that his 7% bump in wages was completely negated.  Stehlik says, "That raise meant nothing. 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." Stehlik also added that they're still dependent on family for help on covering rent and groceries. 

According to the Labor Department, average hourly wages rose 4.7% but when adjusted for inflation, overall wages fell 2.4% on average for all workers. The only sector where pay raises outpaced inflation was the leisure and hospitality industry. According to the analysis of the Labor Department, workers in this sector generally make the lowest hourly wages. In this sector, workers saw a 14% average raise from $17 an hour to more than 1$9.50 per hour. 

Source: The Washington Post