Inflation Likely To Continue Outpacing Salaries For Next Few Years

Inflation is expected to continue outpacing salaries for the next few years, according to recent research from Moneywise. The study, which analyzed data from the Bureau of Labor Statistics, the Federal Housing Agency, and Redfin, found that 97% of occupations have not kept up with inflation over the past five years. When adjusted for inflation, salaries have actually decreased by an average of 8.2% during this period.

In addition to the impact on salaries, the study also noted a significant increase in home prices, which have risen by an average of 56% over the past five years. The research projected median salaries for various occupations across 36 industries up to 2028, based on the average increase over the past five years. The forecast revealed that no industry saw an increase in salary when adjusted for inflation.

The sectors experiencing the highest negative change in annual salaries were sales, real estate, and engineering. Conversely, the industries with the lowest negative change were aviation, customer-facing roles, music, management, and hospitality.

Interestingly, wait staff were the only group to see an increase in salary when adjusted for inflation over the past five years, with a median salary change of 1.73%. Occupations predicted to see the largest drop in adjusted salaries by 2028 include elementary school teachers, accountants, administrative assistants, registered nurses, and general maintenance workers. Occupations expected to fare the best are wait staff, food preparation workers, retail sales workers, cashiers, and customer sales representatives.

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