Inflation Cuts into Wage Gains

February 21, 2022

Driven by labor shortages, median hourly wages increased at an annual rate of 5.2% in December 2021, the highest level since June 2001. However, inflation cuts into buying power, and real wages — adjusted for inflation — actually dropped as inflation spiked in 2021. By contrast, negative inflation (deflation) during the Great Recession sent real wages skyrocketing temporarily even as non-adjusted wage growth declined.

mediam-hourly-wage-chart

All Securities Through Money Concepts Capital Corp., Member FINRA / SIPC

11440 North Jog Road, Palm Beach Gardens, FL 33418 Phone: 561.472.2000

Copyright 2010 Money Concepts International Inc.

Investments are not FDIC or NCUA Insured

May Lose Value - No Bank or Credit Union Guarantee

This communication is strictly intended for individuals residing in the state(s) of MI. No offers may be made or accepted from any resident outside the specific states referenced.

Prepared by Broadridge Advisor Solutions Copyright 2020.

A family is walking through an airport with luggage.

Family Fun for Less: Tips to Help Cut Costs on Your Next Vacation

June 28, 2025
Rising prices can make planning a budget-friendly family vacation challenging. Follow these tips to help.
A man and a woman are standing on a balcony.

Buying a Condo? Focus on the Financials

June 28, 2025
Condominiums, or condos, appeal to home buyers of all ages who want to reap the benefits of homeownership while spending less time and money on upkeep.
A woman is sitting at a table using a laptop computer.

Have You Set a Retirement Savings Goal?

June 28, 2025
Only 54% of workers or their spouses have tried to estimate the savings they would need to live comfortably in retirement; have you?
A woman is sitting in a beach chair reading a book.

Travel Spending Surpasses Pre-Pandemic Levels

June 28, 2025
Travel spending was hit hard by the pandemic but surpassed pre-pandemic levels in 2024. Where are they now?
Show More