Inflation expected to outpace salaries for a few more years: Research
Inflation will likely continue to outpace most salaries over the next few years, according to new research.
The analysis from Moneywise, shared earlier this month, looked at data from the Bureau of Labor Statistics (BLS), the Federal Housing Agency (FIFA) and Redfin to determine how salaries have kept up with inflation over the last five years. The consumer price index (CPI), a popular measure of inflation, did not change from May and is up 3.3 percent annually, according to the most recent data.
Researchers found that 97 percent of occupations have failed to keep up with inflation over the past five years. Their analysis explained that when adjusted for inflation, salaries actually dropped an average of 8.2 percent over that period.
Moneywise noted that as inflation continues to eclipse salaries, home prices have also jumped by an average of 56 percent over the past five years.
The research looked into occupations across 36 industries and outlined what the median salary for those positions likely will be in 2028, based on the average increase over the five-year period. According to the forecast, no industry saw an increase in salary when adjusted for inflation.
The sales, real estate and engineering industries saw the highest negative change in their annual salaries. Aviation, customer facing roles, music, management and hospitality industries all saw the lowest negative change in their annual salaries, according to the study.
Waiters and waitresses, per a USA Today summary of the research, were the only ones to see any increase in salary when adjusted for inflation over the past five years. The research found that their median salary change over five years was up 1.73 percent.
Elementary school teachers, accountants, administrative assistants, registered nurses and general maintenance workers will see their adjusted salaries drop the most by 2028, according to the outlet.
Occupations where adjusted salaries will fare the best are wait staff, food preparation workers, retail sales workers, cashiers and customer sales representatives, USA Today reported.
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