Imagine you were taking home more money every year, but still taking a pay cut. Sound impossible? That’s exactly what’s happening to over half of Americans. Most Americans are working in an industry where salary growth isn’t keeping up with inflation. We looked at the Bureau of Labor Statistics’ detailed data on about 230 industries, and found out that for most, the increases in weekly salaries for full time employees haven’t been enough for wage growth to keep up with inflation.
Watch the wage growth across industries change from 2003 to 2010. In the early years, some industries had salary increases, while others had salary decreases. But as time goes on, the entire cluster sinks lower, as increases in wages fail to keep up with increases in inflation.
You can see that the larger bubbles – industries that employ more people – seem to ‘sink’ faster than the smaller circles. Are large industries having a hard time adapting to change? And the whole cluster shifts left in 2009 and 2010, when all the industries were employing fewer workers.
All we know is that if you’re making less (inflation adjusted) money, it’s more important than ever not to be spending extra by having expensive funds in your company’s 401k or your portfolio. And luckily, FutureAdvisor can help with that – with our free portfolio analysis and specific advice on what funds to buy and sell. Find out more over here.
And as always, we’re happy to answer questions in the comments!