Pew Finds US Real Wages Rose 11% to 22% Since 1999, Depending on Inflation Measure
Updated
Updated · Pew Research Center · May 21
Pew Finds US Real Wages Rose 11% to 22% Since 1999, Depending on Inflation Measure
1 articles · Updated · Pew Research Center · May 21
Median weekly pay climbed to $1,040 in December 2025 from $482 in 1999, but inflation-adjusted gains ranged from 11.5% to 22.1% across four indexes in Pew’s analysis.
Using the main CPI, real buying power rose 12.1%; the chained CPI showed 20.1%, the retroactive CPI 11.5%, and the Fed-preferred PCE 22.1%, highlighting how the inflation gauge changes the answer.
Over shorter periods, the picture shifts again: from December 2015 to December 2025, wages beat inflation under every index, while over the five years to December 2025 real wages fell under all of them.
The analysis lands as inflation hit a three-year high in April and 66% of U.S. adults told Pew that inflation is a very big national problem, up from 63% a year earlier.
After 25 years of real wage gains, why are American paychecks shrinking in 2026?
The Fed's preferred inflation gauge showed highest wage growth. What if its key data is flawed?
The Erosion of Real Wages in the U.S., 1999–2026: Inflation, Inequality, and Policy Responses
Overview
From 1999 to 2026, wage growth in the U.S. has faced persistent challenges, with inflation often outpacing pay increases and eroding real purchasing power for many workers. Even those with higher education, such as young college graduates, have seen their inflation-adjusted wages decline compared to the late 1990s. This long-term trend of wage stagnation affects a broad segment of the workforce, making it difficult for many Americans to improve their standard of living. Recent years have highlighted how rising prices can quickly offset nominal wage gains, underscoring the ongoing struggle to maintain real income growth.