SACRAMENTO, the United States, July 24: Over 40 percent of American workers have seen their real incomes decline over the past year, according to a labor market report released Thursday by the employment website Indeed.
The report revealed that posted wages in the United States rose by 2.9 percent year-on-year in June 2025, just marginally ahead of the 2.7 percent increase in the Consumer Price Index (CPI).
This narrow gap meant that for 43 percent of workers, earnings failed to keep pace with rising consumer prices, eroding their purchasing power in real terms.
Over 40 pct of Americans face real wage declines: research
While the share of workers outpacing inflation had recovered modestly from post-pandemic lows, the latest data highlighted the enduring challenge of wage stagnation, the report said, noting many Americans continued to struggle with the high cost of essentials such as housing, food and transportation, with wage increases insufficient to match real living expenses.
The report noted that wage gains had been concentrated in higher-paying occupations. Fields such as electrical engineering, legal services and marketing saw wage growth exceeding 6 percent annually.
In contrast, workers in traditionally lower-wage sectors, including food service, childcare and personal care, saw minimal increases or even declines in real pay.
These disparities contributed to growing dissatisfaction among workers in lower-income brackets, who face rising expenses with little improvement in earnings.
The uneven nature of wage growth could weaken household spending, which is a key driver of the U.S. economy, according to the report. Although inflation had moderated from its 2022 peak, slowing wage momentum was leaving many workers behind, especially those in hourly or service-oriented roles with limited bargaining power.
The report concludes that despite modest improvements in aggregate indicators, the lived experience for a large portion of the U.S. workforce remained one of economic discomfort.
"The labor market is solid, but its benefits are not being shared equally across the economy," it said.
