Wages are outpacing pandemic-era inflation in these 4 industries

NEW YORK - A new report reveals that wages still lag behind inflation following the pandemic-era price surge, though the gap is closing

According to Bankrate’s 2025 Wage to Inflation Index, this year’s figure is -1.2 percentage points, meaning prices have risen 1.2 points more than wages since early 2021. 

Although the gap has narrowed compared with previous years, wage growth still has not fully offset the surge in prices.

By the numbers:

Since January 2021, inflation has climbed 22.7% compared with a 21.5% rise in wages, based on Bureau of Labor Statistics data for Q2 2025. 

The gap peaked at 4.8 percentage points in Q2 2022 and has been narrowing since Q3 2022, according to Bankrate’s analysis.

Over the past year, progress has slowed as the labor market cools and inflation remains persistent. From Q2 2024 to Q2 2025, wage growth decelerated by 0.6 percentage point compared with a 0.3-point slowdown in price growth. Bankrate projects the wage–inflation gap could close by Q3 2026 if current trends continue.

Dig deeper:

Bankrate’s analysis shows that not all workers have fallen behind inflation. Wages have outpaced pandemic-era price growth in retail trade, health care and social assistance, leisure and hospitality, and food services and accommodation. By contrast, wage growth lags most in education, construction, financial activities, professional and business services, and manufacturing.

What they're saying:

"Economists call the U.S. economy ‘resilient,’ but many Americans don’t agree," said Bankrate Economic Analyst Sarah Foster. "Over half of Americans (56%) say the U.S. economy is on the wrong track, compared to 1 in 4 (26%) who say it’s on the right track, according to Bankrate’s Consumer Sentiment Survey. One likely reason for Americans feeling so downbeat is that their wages still haven’t fully recovered from the shock of post-pandemic inflation." 

"The job market functions like any other market, and faster wage growth can be a sign that workers in some industries are still hanging onto some bargaining power," Foster added. "We also know that Americans are itching for change, something today’s no-hire, no-fire labor market is making difficult, with nearly half (48%) of Americans in the workforce saying they are likely to look for a new job in the next 12 months, according to Bankrate’s Worker Intentions Survey."