According to Monster's latest Cost-of-Living Report, the overwhelming majority of U.S. workers say their paychecks are no longer keeping pace with inflation. In a new survey of more than 1,200 employees, 95% report that their wages have not kept up with the rising cost of living, prompting widespread financial stress and reshaping workplace behavior.

The findings paint a stark picture of how economic pressure is impacting both personal finances and career decisions. From scaling back spending to seeking higher-paying roles, workers are making significant adjustments to stay afloat.

"Workers are doing more with less, and they're feeling the strain," said Vicki Salemi, Monster's Career Expert. "Many are taking on debt, dipping into savings, or delaying major life goals just to manage day-to-day expenses. Employers can't ignore this reality, reassessing compensation and benefits has become critical to retaining talent and supporting employee well-being."

Key Findings

• 95% of workers say their wages have not kept up with inflation.

• Only 9% have received a raise or salary adjustment to offset higher cost of living.

• 76% say recent economic policies under the new administration have directly affected their financial planning.

• 94% identified groceries as the fastest-rising expense in the past year.

• 75% have accessed their savings to cover essentials, with nearly one-third using a significant portion.

Financial Impact: Cutting Back and Tapping Savings

Rising costs are forcing workers to make tough financial choices:

• 75% have cut non-essential spending (up from 69% in 2024).

• 58% delayed major purchases like a home or car.

• 56% are actively searching for higher-paying jobs.

• 55% reduced contributions to retirement or emergency funds.

• 42% took on new debt through credit cards or loans.

Career Impact: Burnout and Job Security Concerns

Financial pressure is not only affecting wallets—it's influencing career behavior and workplace morale:

• 69% say it's harder to find a new job as hiring slows (up from 57% in 2024).

• 50% worry about job security as employers cut costs.

• 40% report burnout linked to financial stress.

What This Means for Employers

Monster's findings suggest an urgent need for employers to address the widening gap between wages and living costs. As financial anxiety grows, so can the risk of disengagement and turnover.

To retain talent, employers should:

• Reevaluate compensation and cost-of-living adjustments.
• Offer financial wellness programs or budgeting support.
• Explore flexible benefits that help offset everyday costs.
• Foster open communication about pay transparency and growth opportunities.