According to data published by the United States Census Bureau US household income fell 2.3% last yearthis due to the higher inflation rate and the increase in the cost of living.
The agency highlighted in its report published this Tuesday that Revenue fell to $74,580 in 2022 compared to $76,330 in 2021 during the pandemicIn this sense, he highlighted that inflation increased during that time by 7.8%.
The figures, on the other hand, showed that last year, The Supplemental Poverty Measure (SPM) rate also increased from 5.2% in 2021 to 12.4% in 2022this measure takes into account the participation of the population in government aid programs.
Although there was a significant drop in Americans’ income last year, the poverty rate in the country did not change much, remaining at 11.5%. This figure represents approximately 37.9 million Americans.
Although this year there have been some improvements in certain areas of the economy and sectors of the labor market have been reactivated, the roller coaster that has become Inflation continues to keep the American average cautious.
In its latest report from the Bureau of Labor Statistics published this Wednesday, the Consumer Price Index increased 0.6% in August, so inflation was a few points higher than last month at 3.7% compared to 3.2 % of July.
The more Americans continue to anticipate that the inflation rate will remain above 3%, the more they will demand wage increases. Many states and companies have adjusted salaries this year; However, it seems not to be enough for workers who must fight against high prices for food, goods, services, rent and gasoline.
According to Elise Gould, senior economist at the Economic Policy Institute, “Low- and middle-wage workers continue to struggle to make ends meet, although there has been some progress that we would love to see continue for lower-wage workers.”. Many people have seen very little increase in recent decades“, said.
Analysis from job site Indeed suggests wage growth will return to its 3% to 4% range by early next year.
Keep reading:
Source: La Opinion
