💨 Abstract

The article discusses the growing cost of living issue in the U.S., highlighting that inflation has outpaced wage increases. In November 2025, average hourly wages increased by 3.5%, but this was insufficient to match the 3% rise in consumer prices. Lower-income households saw the smallest wage increases. The labor market is deteriorating, with job losses in recent months and fewer workers voluntarily leaving their jobs, reducing incentives for employers to offer significant raises.

Courtesy: WTOP Staff