Americans are getting smaller pay raises as inflation ticks up

Americans are getting smaller pay raises as tariffs and higher gas prices threaten to make everything more expensive.

Americans are getting smaller pay raises while tariffs and higher gas prices are threatening to make everything more expensive.

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Translation: The affordability problem isn’t improving.

New government data released Friday showed non-supervisory workers getting a 3.4% pay raise on average hourly earnings over the last year. That’s the slowest pace of wage gains since 2021, and a downshift from the last two years, when pay bumps were closer to 4%.