Labor Day was created over a century ago to commemorate the achievements of the American workforce, and in 2023 the nation's 167 million workers have something to celebrate: wage gains that are putting them ahead of inflation.
Wage growth has been particularly strong for low-paid workers since March 2020, when the pandemic shut down the U.S. economy, said Elise Gould, senior economist at the Economic Policy Institute. Because of government stimulus such as expanded unemployment benefits, low-paid workers had a stronger safety net as they looked for better-paying jobs. As a result, many employers have boosted pay during the past three years.
Despite those gains, millions of workers are still struggling to pay the bills, with almost 4 in 10 Americans recently telling the U.S. Census that they were having difficulties meeting their household expenses. Although though pay increase are staying ahead of inflation this year, low- and middle-wage workers have generally not kept up with the cost of living over the prior four decades, according to EPI research.
"Low and middle-wage workers continue to struggle to make ends meet, even thought there have been some gains that we'd love to see continue for lower wage workers," Gould told CBS MoneyWatch. "Many people have seen very little increase in the last five decades."
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