By Sarah Foster, Bankrate.com
If it feels more durable to get forward proper now, that’s as a result of it’s. Many People are navigating a “worst-of-both-worlds” economic system: a cooling job market on one aspect and cussed inflation on the opposite.
Costs aren’t rising as quickly as they as soon as had been when the U.S. economic system roared again after the coronavirus pandemic. But, the most important share of employees in 4 years (62 p.c) say that their paychecks haven’t stored tempo with will increase of their family bills on account of inflation over the previous 12 months, in response to Bankrate’s annual Pay Increase Survey.
The difficulty for employees is the cumulative toll of inflation. Slowing inflation isn’t the identical as decrease costs, and prices are nonetheless rising extra shortly than they used to earlier than the pandemic. In some circumstances, they’re even accelerating, as companies begin to go on tariff-related bills.
Employees additionally not have the cushion of a red-hot labor market to assist them offset a few of the harm. Lower than 3 in 5 employees (57 p.c) have acquired a pay improve over the previous 12 months, the bottom share since polling started in 2022. 13 p.c discovered a brand new, better-paying job, down from 26 p.c in 2023. In the meantime, greater than 2 in 5 employees (43 p.c) acquired no pay improve in any respect, a sequence excessive.
That’s a stark reversal from simply 4 years in the past, when job openings far outnumbered unemployed employees, giving workers historic bargaining energy to lock in document pay will increase.
At the moment, job development is slowing, hiring has fallen to its lowest degree since 2013 and there are extra unemployed job seekers than openings. The outcome: Paychecks aren’t stretching as far and alternatives to earn extra are fading.
How are employees feeling about their pay and careers? Bankrate has been polling People because the U.S. economic system emerged from the pandemic by our Employee Intentions and Pay Increase surveys. This web page brings all of that knowledge collectively, that includes the most recent outcomes from our annual Pay Increase Survey.
Bankrate’s newest insights on People’ incomes and profession prospects
- A frozen job market Over the previous 12 months, lower than 2 in 5 employees (57%) received a pay improve, both by discovering a brand new, better-paying job (7%), receiving a elevate at their present employer (44%) or each (6%).
- Inflation nonetheless bites Almost 2 in 3 employed People (or 62%) stated their revenue has not stored tempo with will increase of their family bills on account of inflation, up from 59% in 2024, 60% in 2023 and 55% in 2023.
- Employees really feel like they’ve much less energy About 2 in 5 employees (42%) say they aren’t assured they may discover a better-paying job or get a pay elevate at their present place over the subsequent 12 months, up from 36% in 2024.
Extra employees say their paychecks are dropping floor to inflation
For years, official knowledge has recommended that pay has lastly been exceeding inflation. Wages have been rising sooner than costs since Might 2023, in response to the Labor Division’s measure of employees’ common hourly earnings. Most just lately, they’re up 3.7 p.c from a yr in the past as of August, versus a 2.9 p.c inflation price for the month.
Many People, nonetheless, say they nonetheless aren’t feeling it. Bankrate’s newest Pay Increase Survey finds that greater than 6 in 10 employees (62 p.c) report their revenue has not stored up with inflation — the best share in 4 years, up from 59 p.c in 2024, 60 p.c in 2023 and 55 p.c in 2022.
On the similar time, simply 27 p.c say their pay has stored tempo or exceeded inflation, down from 32 p.c in 2024, 29 p.c in 2023 and 33 p.c in 2022. One other 11 p.c say they aren’t certain.
Bankrate’s personal Wage to Inflation Index helps clarify the disconnect. Whereas pay development has outstripped inflation up to now a number of years, it hasn’t been sufficient to make up for earlier losses. Since January 2021, wages have lagged costs by 1.2 share factors in complete, that means employees nonetheless have much less buying energy at present than they did 4 years in the past. Progress at closing that hole has additionally slowed, with wage development and the labor market cooling at a sooner price than inflation in latest months.
Older employees had been extra prone to say their pay hasn’t stored tempo with inflation, at:
- Child boomers (ages of 61 to 79): 70 p.c;
- Era Xers (ages 45 to 60): 68 p.c
- Millennials (ages 29 to 44): 60 p.c
- Era Zers (ages 18 to twenty-eight): 52 p.c.
In the meantime, higher-income employees had been extra prone to say their pay did maintain tempo our outstrip inflation:
- $100,000 or extra a yr: 34 p.c;
- Between $50,000 and $99,999 yearly: 26 p.c;
- Underneath $50,000 a yr: 26 p.c.
Males (30 p.c) had been extra seemingly than girls (24 p.c) to say that their pay stored tempo with inflation.
Extra employees are staying put, and fewer employees are discovering better-paying jobs
In some circumstances, getting a pay improve isn’t even sufficient to offset inflation, in response to the survey. Nearly all of employees who noticed a pay bump in 2025 (58 p.c) stated their revenue nonetheless fell in need of inflation.
Moreover, the variety of employees who acquired a pay improve and felt their pay stored tempo with inflation declined, falling to 34 p.c from 42 p.c in the same survey that ran in 2024.
Knowledge confirms that wages aren’t rising as a lot as they did a couple of years in the past, that means employers are giving smaller — and fewer — raises. Wage development as soon as averaged as excessive as 6.7 p.c in the summertime of 2022, in response to knowledge from the Atlanta Fed. It’s fallen to 4.1 p.c, the tracker now exhibits as of August.
Most employees who did get a elevate this yr acquired it by staying put: 50 p.c earned a bump at their present job, a share that’s barely moved in 4 years (49 p.c in 2024 and 48 p.c in each 2023 and 2022). Far fewer are seeing positive aspects by transferring to a brand new employer. 13 p.c discovered a better-paying job in 2025, down from 20 p.c in 2024, 26 p.c in 2023 and 21 p.c in 2022.
Job hopping has historically been the surest solution to safe an even bigger paycheck, however that benefit is fading in at present’s weaker market. In August 2022, job switchers noticed their wages develop a median of 8.4 p.c, in contrast with 5.6 p.c for many who stayed put, Atlanta Fed knowledge exhibits. At the moment, that premium has narrowed to 4.4 p.c versus 3.8 p.c. With hiring slowing and extra employees competing for fewer openings, employers don’t really feel the identical stress to boost pay.
Employees are dropping confidence that they’ll get a pay improve
Greater than 2 in 5 employees (42 p.c) say they aren’t assured that they’ll discover a better-paying job or get a pay elevate at their present place within the subsequent 12 months, up from 36 p.c in 2024. Virtually half of employees (49 p.c) say they’re assured, whereas one other 9 p.c say they don’t know.
Decrease-income employees and People with probably the most schooling had been extra prone to say they aren’t assured about getting a pay improve.
Proportion of those that are “not assured,” by revenue:
- Making below $50,000 a yr: 44 p.c;
- Making between $50,000 and $99,999: 42 p.c; and
- Making $100,000 or extra a yr: 37 p.c.
Proportion of those that are “not assured,” by schooling:
- Publish-graduate diploma: 48 p.c;
- 4-year diploma: 41 p.c;
- Some faculty or a 2-year diploma: 42 p.c; and
- Highschool diploma or much less: 40 p.c.
The labor market feels hardest for the youngest
Gen Z’s outlook took the most important hit in Bankrate’s ballot. Half of Gen Z employees (50 p.c) say they’re assured about getting a pay improve within the subsequent yr, down sharply from 61 p.c in 2024 — the steepest drop of any era. They had been additionally far much less prone to land a better-paying job this yr: 17 p.c did, in contrast with practically one-third (32 p.c) a yr in the past.
Millennial employees are additionally seeing fewer alternatives. Seventeen p.c reported discovering a better-paying job in 2025, down from 26 p.c in 2024. Their confidence in getting a elevate over the subsequent yr slipped as nicely, falling to 55 p.c from 60 p.c.
Older employees are experiencing extra stability. Child boomers had been the probably to say they acquired neither a pay improve nor a brand new job this yr (54 p.c), however that matched final yr’s degree of 54 p.c. Their confidence in a future elevate even ticked up, rising to 44 p.c from 40 p.c.
In the meantime, 10 p.c of Gen X employees discovered a better-paying job, down from 15 p.c final yr, and their confidence about getting a elevate fell to 43 p.c from 48 p.c in 2024.
These findings level to a deeper actuality for younger individuals: The job market is barren. Layoffs are low, however corporations aren’t rising a lot both, with the hiring price now the bottom since 2013, Labor Division exhibits. Coming into the job market at a time when few corporations are hiring, younger employees between the ages of twenty-two and 27 are dealing with a better unemployment price than the remainder of the workforce, in response to the New York Fed.
Many employees nonetheless plan to ask for a elevate or search for a brand new job
Generally, a more difficult job market could make individuals extra cautious about rocking the boat at work. Fewer People job hop throughout weaker job markets, historic Labor Division knowledge exhibits. Wage development cools in slower markets, and different employees could develop weary about asking for extra flexibility.
At the moment’s job market slowdown hasn’t been stopping many employees from searching for extra from their present roles, in response to Bankrate’s Employee Intentions Survey.
Over the subsequent 12 months, employees say they’re prone to:
- Search for a brand new job: 48 p.c;
- Ask for a elevate: 44 p.c;
- Ask for extra flexibility (i.e. completely different hours, distant work, and so on.): 36 p.c;
- Begin their very own enterprise: 25 p.c;
- Relocate for a job: 18 p.c;
- Give up a job: 18 p.c.
“Because the job market has normalized following the interval a couple of years in the past when it was broadly described as red-hot, many employees are searching for higher pay or new work,” Bankrate Senior Financial Analyst Mark Hamrick says.
Even so, these ambitions are extra muted than in recent times, reflecting what some economists describe as “job hugging.” Again in 2023, 56 p.c of employees stated they deliberate to search for a brand new job. Two years in the past, practically 30 p.c anticipated to give up and greater than one-quarter (26 p.c) stated they’d relocate.
| 12 months | Search for a brand new job | Ask for a elevate | Ask for extra flexibility | Relocate for a job | Give up a job |
| 2025 | 48 p.c | 44 p.c | 36 p.c | 18 p.c | 18 p.c |
| 2024 | 48 p.c | 43 p.c | 42 p.c | 22 p.c | 25 p.c |
| 2023 | 56 p.c | 47 p.c | 42 p.c | 26 p.c | 30 p.c |
Younger individuals are probably to take steps that embrace trying to find a brand new job or asking for a elevate — a pattern that has been present in Bankrate polling relationship again to 2021.
Greater than half (53 p.c) of Gen Z employees are prone to seek for a brand new job. That compares to 49 p.c of millennial employees (ages 29-44), 48 p.c of Gen X employees (ages 45-60) and 1 in 4 child boomer employees (ages 61-79).
Moreover, practically one-quarter of Gen Z employees say they’re prone to give up a job within the subsequent yr, greater than another era:
- Gen Z employees: 23 p.c
- Millennial employees: 17 p.c
- Gen X employees: 16 p.c
- Child boomer employees: 1 in 10
Additionally, a majority of Gen Z and millennial employees say they’re prone to ask for a elevate at work within the subsequent yr:
- Gen Z employees: 51 p.c
- Millennial employees: 50 p.c
- Gen X employees: 39 p.c
- Child boomer employees: 1 in 5
Many employees are nonetheless nervous about their job safety
As fears of layoffs rise and extra employees face longer job hunts, most employees (69 p.c) say they’re nervous about their job safety, Bankrate’s Employee Intentions Survey finds. Greater than 1 / 4 (27 p.c) say they’re extra nervous about their job safety because the starting of the yr, whereas 42 p.c of employees say their degree of fear about job safety hasn’t modified because the starting of the yr.
The extent of fear, nonetheless, is about the identical because it was in the same ballot from 2024, which discovered that 28 p.c had been extra nervous about their job safety and 70 p.c have some degree of fear.
One other 15 p.c say they’re much less nervous about their job safety. Sixteen p.c of employees say they’ve by no means been nervous about their job safety.
No matter whether or not they’re prepared to leap ship, the bulk (65 p.c) of employees say their employment or profession state of affairs is about the identical because it was to start with of 2025. Moreover, 1 in 5 employees (22 p.c) say their profession state of affairs has improved, whereas 14 p.c say it’s worsened.
Although 2025 is proving difficult for a lot of employees, these traits have endured for some time. In 2024, 57 p.c of employees stated their employment/profession state of affairs was about the identical in comparison with when the Federal Reserve began elevating rates of interest in March 2022.
3 ideas when searching for a brand new function in at present’s difficult job market
At the moment’s job market isn’t best for searching for a brand new function. However whether or not you’re searching for a better wage, higher work-life steadiness or when you’re simply nervous about your job safety, there’s a couple of issues you are able to do to organize for a job hunt.
“Most forecasters see inflation choosing up and the job market weakening modestly over the subsequent yr,” Hamrick says. “In any case, it’s prudent for employees to maintain their expertise sharpened and their contacts activated. If one plans to search for work within the coming months or is pressured into that state of affairs by unemployment, these proactive steps ought to make for a neater transition.”
1. Enhance your financial savings
Earlier than making any massive life change, like beginning a brand new job, it’s essential to verify your funds — particularly your financial savings — are as much as snuff. Historically, a well-stocked emergency financial savings fund might need three to 6 months of bills in it, however as extra employees are unemployed for six months or extra, you would possibly need to think about holding greater than six months of bills saved. That is additionally a wise transfer when you’re involved about your job safety — the extra money you will have saved for emergencies, the safer chances are you’ll really feel.
There are some things you are able to do to extend the quantity you save every month:
- Create a funds, or replace your funds when you haven’t touched it shortly.
- Assessment your spending habits for undesirable bills and locations the place you’ll be able to reduce. See when you can minimize $50 to $100 of spending per thirty days by chopping again on unused subscriptions, cooking extra at residence or renegotiating your payments.
- Set a financial savings purpose with a selected time interval and quantity, corresponding to $5,000 in a yr. This can assist maintain you accountable.
- Automate your financial savings by setting a recurring switch each time you’re paid.
- Hold your financial savings in a high-yield financial savings account, which can earn extra curiosity than a standard financial savings account, primarily providing a free increase to your financial savings.
2. Perceive your strengths as a job candidate that can assist you negotiate
Job interviews are an train in advertising your self. Earlier than beginning the interview course of, write down three smooth expertise and three laborious expertise you carry to the desk — embrace these in your resume, too. Delicate expertise might be communication, management, battle administration, teamwork, problem-solving or time administration. Laborious expertise, then again, might be any technical expertise or certifications and levels you’ve earned. Additionally, in your resume and in your interviews,word tangible accomplishments from the previous few years. These might be new initiatives you’ve began, monetary targets that you simply’ve met, methods you’ve optimized your work or different accomplishments.
Understanding your expertise will aid you have the ability to higher negotiate when it’s time to debate wage and advantages, both when asking for a promotion at your present function or once you’re searching for your subsequent job. Even when it’s an employer’s job market, it’s best to nonetheless advocate for equitable pay and advantages. Ask for what you deserve.
“Between the strikes by the federal authorities, speedy advances in know-how together with synthetic intelligence, and the altering world panorama, there’s a excessive degree of uncertainty but in addition loads of alternatives,” Hamrick says. “Employees with the correct talent units and can-do attitudes shall be in the most effective place to win.”
3. Join together with your community
If there have been ever a time to undergo that pile of enterprise playing cards within the backside of your desk drawer, now’s it. Your community, whether or not that’s connections on LinkedIn, former employers and colleagues, fellow faculty alumni or others in your group, are an awesome useful resource when searching for a brand new function. In case you’re searching for your subsequent job, label your self as “Open to Work” on LinkedIn and prioritize rising your community by reaching out to former colleagues or attending native networking occasions.
Pay Increase Survey Methodology This survey was performed utilizing an internet interview administered to members of the YouGov Plc panel of people who’ve agreed to participate in surveys. All figures, except in any other case acknowledged, are from YouGov Plc. The whole pattern measurement was 2,497 U.S. adults, together with 1,175 who’re employed. Fieldwork was undertaken between Sept. 2-4, 2025. The survey was carried out on-line and meets rigorous high quality requirements. It gathered a non-probability-based pattern and employed demographic quotas and weights to raised align the survey pattern with the broader U.S. inhabitants
Employee Intentions Survey Methodology The research was performed utilizing an internet interview administered to members of the YouGov Plc panel of people who’ve agreed to participate in surveys. All figures, except in any other case acknowledged, are from YouGov Plc. The whole pattern measurement was 2,000 U.S. adults, of whom 1,005 are working full-time or presently searching for full-time employment. Fieldwork was undertaken between June 6-16, 2025. The survey was carried out on-line and meets rigorous high quality requirements. It gathered a non-probability-based pattern and employed demographic quotas and weights to raised align the survey pattern with the broader U.S. inhabitants.
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