Almost Three-Quarters Of Workers Say Inflation Is Outpacing Their Pay

Nearly three-fourths of American workers say that the cost of living is outpacing wages, according to a new report.

Bank of America’s 12th annual Workplace Benefits Report, “Navigating a New Era of Financial Wellness,” noted that more American workers are feeling pressure to their “financial wellness” because of soaring inflation.

According to a news release announcing the results, “71% feel the cost of living is outpacing growth in their salary or wages. This is having an impact on employees’ overall feeling of financial wellness.”

The percentage was up from 58% in February. In addition, 80% of workers are concerned about inflation, regardless of age, gender, race, or income.

Almost two-thirds of workers, 62%, are stressed about their finances despite being employed.

“Employees are feeling stressed by current economic conditions and they are looking for help from their employers across a range of financial and other wellness topics,” Lorna Sabbia, head of retirement and personal wealth solutions at Bank of America, said regarding the report.

The study showed that a majority of American workers see inflation as a major concern, despite recent drops in gas prices and a strong job market. In addition, though housing costs have started to slow in recent months, prices in other areas, such as food, utilities, and retail items, continue to soar.

Home energy bills could become a major source of concern as the nation nears the winter months. In a different Bank of America study released last week, U.S. utility bills have increased 16.3% year over year.

The higher costs are expected to hit lower-income Americans the most. With electricity prices up 33% year over year, simply keeping the lights on is becoming a struggle for a growing number of households.

Recent updates regarding inflation also appear to support the growing concerns. U.S. price levels between August 2021 and August 2022 rose 8.3%, according to data from the Bureau of Labor Statistics.

A poll from Bankrate that found 48% of American workers enjoyed a pay raise in the past year, while 21% found a higher-paying job, including 8% who received both, as The Daily Wire previously reported. However, 39% of workers received neither — the lowest level in any prior version of the survey.

However, just 39% of respondents who received a raise or a better-paying job reported that the income was enough to keep pace with prices. One-third of workers agreed that their income has either exceeded or kept pace with inflation over the past year.

“It will take more time and resolve to bring inflation down, which is why we passed the Inflation Reduction Act to lower the cost of healthcare, prescription drugs and energy,” President Joe Biden said in a statement on the Inflation Reduction Act. “And my economic plan is showing that, as we bring prices down, we are creating good paying jobs and bringing manufacturing back to America.”

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