Less than 40 percent of workers feel their salary has kept up with inflation: poll

A majority of workers feel their salary is not enough to meet the rising costs of living driven up by inflation.

by Gianna Melillo | Jan. 04, 2023

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The FinanceBuzz survey was carried out late last year.

Although the majority of respondents reported they’re fairly compensated for their work, most also feel their salary is not sufficient to meet rising costs.

The findings come as economists increasingly anticipate a recession in the coming year and Americans report worry about their short-term financial outlook.

Just 37 percent of U.S. workers feel their salary has kept up with soaring inflation, according to a recent survey, while 41 percent believe they’re currently being underpaid.

Inflation spikes throughout 2022 prompted some workers to call for inflation-adjusted salaries, though few companies took heed.

The Federal Reserve did slow its interest rate hikes last month thanks to some signs of easing inflation, and many economists anticipate a 2023 recession.

A FinanceBuzz poll, completed by 1,250 people in November, shows 48 percent of Millennials reporting they feel underpaid, as do 40 percent of both Gen Z and Gen X and 42 percent of Baby Boomers.

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Despite 52 percent of respondents overall saying they’re fairly paid, 63 percent say their salaries have not kept up with inflation.

The survey did not list a margin of error.

This past year, out-of-pocket health care spending rose at the highest rate since 1985, while the cost of food was driven up by a combination of factors including supply chain issues.

The majority of Americans also don’t anticipate their financial situations will improve in the near future. A recent Bankrate survey found 66 percent of respondents had a negative outlook on their finances, with the majority blaming inflation.