Workers Say Wages Still Aren't Catching Up
But you can find out where your salary stands.
Workers aren’t just worried about inflation anymore – they’re losing faith that their pay will ever catch up.
For years, employees have been told that inflation would eventually cool, that wages would rise and that things would ultimately balance out. But for many workers, that optimism appears to be fading.
According to career company Resume Now’s 2026 Financial Outlook Report, nearly half of working Americans (49%) don’t believe their wages will ever catch up to the rising cost of living. It’s a sobering finding that highlights a growing disconnect between what workers are earning and what they need to simply get by.
“The findings suggest many workers have lost confidence that steady employment or routine raises will provide greater financial security,” says Keith Spencer, Resume Now’s career expert.
Find out where your salary stands.
Even though rising living costs aren’t the same as below-market pay — I mean, even those earning competitive salaries have to contend with the reality of spending hundreds of dollars for just a handful of groceries — understanding where your salary stands is still useful. We might not be able to control inflation, but it can help us identify where your salary sits and whether you need to make any changes.
According to Spencer, workers should start by determining whether their compensation actually falls below the market. “The first step is to research the market thoroughly,” he says.
Spencer recommends comparing your pay against multiple sources, including salary ranges in job postings, labor market data such as the U.S. Bureau of Labor Statistics, as well as industry associations, recruiters and professionals in similar roles. It’s also important to compare the responsibilities of your role, as opposed to simply your job title, which can vary significantly between employers.
Employees should also look at their total compensation package, including bonuses, health benefits, retirement contributions, paid time off and workplace flexibility. If you’ve taken on significantly more responsibility without a corresponding increase in pay or a new title, it may be a sign your compensation no longer reflects your role.
Spencer also advises asking your manager or HR about your position’s salary range, where you fall within it and what determines raises or promotions can provide context – particularly at a time when many workers say employers aren’t transparent about compensation.
Financial pressure is resulting in workers feeling stuck.
The report also found that nearly half of workers have postponed major life milestones because of rising costs. That financial pressure doesn’t just affect decisions like buying a home or starting a family – it can also shape career choices.
“Financial pressure can pull workers in two directions,” Spencer says. “They may be more motivated to seek higher pay but also more concerned about losing stable income or benefits, experiencing a period of unemployment or accepting a lower salary during a career change.”
The result is what Spencer describes as “career gridlock,” where workers feel stuck in jobs that no longer serve them because changing employers feels too financially risky, even though they recognize they might be able to earn more elsewhere.
For employers, that’s an important distinction. High retention doesn’t always mean employees are happy. Some may simply feel they can’t afford to leave.
There are options if you find that you are underpaid.
If you find that your wages haven’t kept up with the market, there are a number of things you can do, notably preparing to negotiate a raise. “If their compensation appears below market, [employees] can prepare for a salary conversation by documenting measurable results, expanded responsibilities, new skills, and credible salary benchmarks,” Spencer says.
But if, for whatever reason, an immediate raise is unavailable, they can ask what specific goals would position them for an increase and when the conversation can be revisited.
While you may not necessarily switch jobs at this time, Spencer also says that it pays (pun intended) to consider your options outside of your current workplace. It may not mean actively applying, but it can include updating your resume, networking, browsing job postings and speaking with recruiters. This “can help them understand their options without immediately giving up stable income or benefits,” he says.
Additionally, taking on side hustle or freelance work may also help bridge the gap. In fact, 28% of respondents say that they’ve taken on additional work to cope with the rising cost of living. Beyond providing extra income, freelancing can help workers develop new skills, expand their professional network and test out a potential career pivot.
Ultimately, Spencer highlights that the right strategy depends on your specific situation. “For some workers, negotiating with their current employer may be enough. For others, changing jobs may offer the strongest opportunity for higher long-term earnings,” he says. “The right choice depends on the size of the pay gap, the opportunities available in their field, and their personal circumstances and goals.”