Cost-of-Living Crunch: 95% of U.S. Workers Say Wages Haven’t Kept Up With Cost of Living
Monster’s May 2025 survey reveals inflation and rising costs are pushing employees to cut back, dip into savings, and reconsider their careers.
In a new Monster survey of more than 1,200 U.S. workers, the vast majority of employees say their paychecks are not stretching as far as they once did. With 95% of workers reporting their wages have failed to keep up with the rising cost of living, financial strain is reshaping both personal and professional decisions in the modern workplace.
Key findings in Monster’s cost of living poll
- 95% of workers say their wage has not kept up with inflation
- 9% have received a raise or salary adjustment to offset higher costs
- 76% say recent economic policies under the new administration have directly impacted their financial planning
Financial Impact: Workers Cutting Back and Tapping Savings
Rising prices are forcing employees to make tough choices. Compared to 2024, more workers are cutting spending and dipping into savings to cover essentials:
| 75% | have cut back on non-essential expenses (up from 69% in 2024) |
| 58% | delayed major purchases like a car or home |
| 56% | are searching for higher-paying jobs just to keep up |
| 55% | reduced retirement or emergency fund contributions |
| 42% | took on additional debt through credit cards or loans |
Perhaps most alarming: 94% of workers identified groceries as the fastest-rising expense in the past year. To cope, 75% have accessed their savings, with nearly one-third using a significant portion.
Career Impact: Burnout and Job Security Concerns
The cost-of-living crisis isn’t just straining wallets—it’s reshaping career paths:
- 69% say it’s harder to find a new job as companies scale back hiring (up from 57% in 2024).
- 50% worry about job security as employers cut costs.
- 40% report burnout, with performance suffering as financial stress takes a toll.
What This Means for Employers
The survey highlights a disconnect between wages and economic reality. Employees are increasingly open to leaving jobs for higher pay, while financial stress is contributing to lower productivity and higher burnout. For employers, this signals an urgent need to revisit compensation strategies, benefits, and support systems—or risk losing talent to competitors.
The Cost-of-Living Crunch
With nearly all workers reporting that their wages are not keeping pace with inflation, the cost-of-living crisis is redefining both financial stability and career choices. From cutting expenses to job hopping, today’s workforce is adapting in real time to economic pressures—often at the expense of long-term security.
Methodology:
The findings in this report are based on a survey conducted by Monster in May 2025 among 1,200+ U.S. workers. Respondents were employed either full-time or part-time at the time of the survey. Participants answered a mix of yes/no, single-selection, and multiple-choice questions about workplace culture, employer support, mental health, and job priorities. The sample included workers across a range of industries, age groups, genders, and education levels to reflect the diversity of the U.S. workforce.
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