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2025 Real Wages Jump 4% as Inflation Slides

5/28/2026

47 6 Full Breakdown

Summary

Story summary

Real wages increased 4 percent in 2025, up from 3.2 percent in 2024.
Inflation fell to 0.9 percent in 2025, down from 2.4 percent the previous year.
Profitable firms comprised 83.1 percent of firms in 2025, with loss-makers at 16.9 percent.
The average wage raise was 5.8 percent, with administrative services up 7.5 percent, insurance up 6.6 percent, and accommodation up 3.9 percent.

History

Historical Context

After the early-1990s recession, the Federal Reserve cut rates to a record low and, by November 1998, held the federal funds rate at 4.75%, supporting a 1999 GDP surge of 4.87% and inflation of 1.5%. By September 2025 inflation slipped to 2.9% and corporate profitability remained high, echoing the late-1990s boom that began under the Clinton administration.

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Story summary

Real wages increased 4 percent in 2025, up from 3.2 percent in 2024.
Inflation fell to 0.9 percent in 2025, down from 2.4 percent the previous year.
Profitable firms comprised 83.1 percent of firms in 2025, with loss-makers at 16.9 percent.
The average wage raise was 5.8 percent, with administrative services up 7.5 percent, insurance up 6.6 percent, and accommodation up 3.9 percent.

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