That’s just how inflation works though. Wages tend to rise slower than prices do. In economic terms, wages are “sticky.” They rise and fall slower than prices do in response to market conditions. Long periods of slow gradual inflation are fine, as people simply demand that their wages rise at a steady 2-3% to keep up with inflation, and employers expect it. But if there is a sudden spike in prices, it’s a lot harder for employees to suddenly negotiate wage increases. Instead, the slower process of labor market competition, employees leaving underpaying jobs for better paying jobs, has to take over. It’s going to take a few years for wages to catch up with the spike in prices, but it does happen with time, primarily from people switching jobs.
I’ve never had a 2% pay raise since I started my career in 2008.
Not by staying in one company anyway. I had to change companies every time and even then it was hard negotiating anything above what I was making before.
That’s just how inflation works though. Wages tend to rise slower than prices do. In economic terms, wages are “sticky.” They rise and fall slower than prices do in response to market conditions. Long periods of slow gradual inflation are fine, as people simply demand that their wages rise at a steady 2-3% to keep up with inflation, and employers expect it. But if there is a sudden spike in prices, it’s a lot harder for employees to suddenly negotiate wage increases. Instead, the slower process of labor market competition, employees leaving underpaying jobs for better paying jobs, has to take over. It’s going to take a few years for wages to catch up with the spike in prices, but it does happen with time, primarily from people switching jobs.
I’ve never had a 2% pay raise since I started my career in 2008.
Not by staying in one company anyway. I had to change companies every time and even then it was hard negotiating anything above what I was making before.