We’ve been moaning about inflation for a couple years now, and for good reason - it’s been brutalizing our Paychecks! Everything is more expensive now, so our dollars don’t go as far. At some point it’s gotta' end, right? Well, maybe we’re there (FINALLY)!
Here are Five Fast Facts on wage growth vs inflation:
- 👊 Breaking Through - Weekly earnings grew by 0.6% in June. That’s the first year-over-year growth in over two years! Cue the rooftop parties!
- 🤔 Rates Holding Steady - The Federal Reserve raised interest rates 10 times over the last 15 months but as of June entered a “wait-and-see” period to let the markets settle into a new trend with the higher rates. Don’t know about you, but we get a mental image of shooting a few bullets around the corner and then ducking back and waiting to see what happens…
- 🙏 Trends Seem Good - Looking at broader market trends, there is some reason for hope. Hiring, labor movements, and business budgets seem primed to let workers keep that wage growth.
- 📉 Inflation Slows - Inflation has been slowing lately. This is a great thing, and gives employers a bit more wiggle room to pay their workers more. Also, it’s great that you don’t need a mortgage to buy eggs anymore.
- 😣 Not Out Of It Yet - It’s not over yet, though. The June jobs report showed that a lot of part time workers were part time because their hours were cut down from full time. So, this would suggest that the small job growth and wage gains we saw in June are already going backwards faster than Bud Light ditched Dylan Mulvaney.
🔥Bottom line: We seem to be at a fork in the road. No one really knows which way we’ll go next, but here’s hoping it’s the one where inflation goes down and wages go up! Regardless, we’ll take even the small wins where we can get them.
Is inflation still killing your Paycheck, or is it getting better?
Let us know by connecting with us on Facebook and Instagram! Also, remember to share this newsletter with your friends & coworkers!
BTW, If you’ve read this far and haven’t yet signed up for the weekly Paycheckology newsletter, CLICK HERE!
