Memo to Employee: We value your work for the company. We will not give pay raises to teenagers this year because of A. You are teenagers, so we can underpay you, B. Even if we raise you, it won’t catch up with inflation and C. We’re doing what the Federal Reserve wants us to, and we don’t care about your opinion.
The company you are working with won’t say that, but the statement holds much truth. As prices are being raised and wages are being lowered, it is more complicated to make money now than it ever was before.
Now most workers still get a raise once a year, but more is needed to combat the high inflation. The Bureau of Labor Statistics has reported that in September 2022, there was a negative compensation for workers’ pay, wages and salaries, and benefits.
(Referring to the graph posted by the U.S Bureau of Labor Statistics)
Robert Rich and Joseph Tracy, economists at the Federal Reserve Bank of Dallas, state, “the most severe faced by employed workers over the past 25 years”. As one can include, although you are issued a wage raise, it does not significantly increase due to inflation.