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U.S. Wages Show Signs of Recovery Amid Inflation

9/10/2025

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Story summary
  • Job listings in the U.S. increased in 2021, but inflation affected perceptions of the labor market, per Columbia University research.
  • Adjusted for inflation, wages were 4% lower than pre-pandemic levels, despite a high vacancy-to-unemployment rate in March 2022.
  • From January 2021 to July 2025, consumer prices rose 22.7%, while wages grew 21.8%, leading to a 0.7% decline in real hourly earnings.
  • Since May 2023, nominal wage growth has exceeded inflation, indicating a potential recovery in real wages.
  • Stable inflation and strong wage growth may help surpass pre-crisis real wage levels, though risks persist.