By Sarah Foster, Bankrate.com
If it feels harder to get ahead right now, that’s because it is. Many Americans are navigating a “worst-of-both-worlds” economy: a cooling job market on one side and stubborn inflation on the other.
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Prices aren’t rising as rapidly as they once were when the U.S. economy roared back after the coronavirus pandemic. Yet, the largest share of workers in four years (62 percent) say that their paychecks have not kept pace with increases in their household expenses due to inflation over the past 12 months, according to Bankrate’s annual Pay Raise Survey.
The trouble for workers is the cumulative toll of inflation. Slowing inflation isn’t the same as lower prices, and costs are still rising more quickly than they used to before the pandemic. In some cases, they’re even accelerating, as businesses start to pass on tariff-related expenses.
Workers also no longer have the cushion of a red-hot labor market to help them offset some of the damage. Less than 3 in 5 workers (57 percent) have received a pay increase over the past 12 months, the lowest share since polling began in 2022. Thirteen percent found a new, better-paying job, down from 26 percent in 2023. Meanwhile, more than 2 in 5 workers (43 percent) received no pay increase at all, a series high.
That’s a stark reversal from just four years ago, when job openings far outnumbered unemployed workers, giving employees historic bargaining power to lock in record pay increases.
Today, job growth is slowing, hiring has fallen to its lowest level since 2013 and there are more unemployed job seekers than openings. The result: Paychecks aren’t stretching as far and opportunities to earn more are fading.
How are workers feeling about their pay and careers? Bankrate has been polling Americans since the U.S. economy emerged from the pandemic through our Worker Intentions and Pay Raise surveys. This page brings all of that data together, featuring the latest results from our annual Pay Raise Survey.
Bankrate’s latest insights on Americans’ incomes and career prospects
A frozen job market Over the past 12 months, less than 2 in 5 workers (57%) got a pay increase, either by finding a new, better-paying job (7%), receiving a raise at their current employer (44%) or both (6%).
Inflation still bites Nearly 2 in 3 employed Americans (or 62%) said their income has not kept pace with increases in their household expenses due to inflation, up from 59% in 2024, 60% in 2023 and 55% in 2023.
Workers feel like they have less power About 2 in 5 workers (42%) say they are not confident they will find a better-paying job or get a pay raise at their current position over the next 12 months, up from 36% in 2024.
More workers say their paychecks are losing ground to inflation
For years, official data has suggested that pay has finally been exceeding inflation. Wages have been rising faster than prices since May 2023, according to the Labor Department’s measure of workers’ average hourly earnings. Most recently, they’re up 3.7 percent from a year ago as of August, versus a 2.9 percent inflation rate for the month.
Many Americans, however, say they still aren’t feeling it. Bankrate’s latest Pay Raise Survey finds that more than 6 in 10 workers (62 percent) report their income has not kept up with inflation — the highest share in four years, up from 59 percent in 2024, 60 percent in 2023 and 55 percent in 2022.
At the same time, just 27 percent say their pay has kept pace or exceeded inflation, down from 32 percent in 2024, 29 percent in 2023 and 33 percent in 2022. Another 11 percent say they aren’t sure.
Bankrate’s own Wage to Inflation Index helps explain the disconnect. While pay growth has outstripped inflation in the past several years, it hasn’t been enough to make up for earlier losses. Since January 2021, wages have lagged prices by 1.2 percentage points in total, meaning workers still have less purchasing power today than they did four years ago. Progress at closing that gap has also slowed, with wage growth and the labor market cooling at a faster rate than inflation in recent months.
Older workers were more likely to say their pay hasn’t kept pace with inflation, at:
Baby boomers (ages of 61 to 79): 70 percent;
Generation Xers (ages 45 to 60): 68 percent
Millennials (ages 29 to 44): 60 percent
Generation Zers (ages 18 to 28): 52 percent.
Meanwhile, higher-income workers were more likely to say their pay did keep pace our outstrip inflation:
$100,000 or more a year: 34 percent;
Between $50,000 and $99,999 annually: 26 percent;
Under $50,000 a year: 26 percent.
Men (30 percent) were more likely than women (24 percent) to say that their pay kept pace with inflation.
More workers are staying put, and fewer workers are finding better-paying jobs
In some cases, getting a pay increase isn’t even enough to offset inflation, according to the survey. The majority of workers who saw a pay bump in 2025 (58 percent) said their income still fell short of inflation.
Additionally, the number of workers who received a pay increase and felt their pay kept pace with inflation declined, falling to 34 percent from 42 percent in a similar survey that ran in 2024.
Data confirms that wages aren’t growing as much as they did a few years ago, meaning employers are giving smaller — and fewer — raises. Wage growth once averaged as high as 6.7 percent in the summer of 2022, according to data from the Atlanta Fed. It’s fallen to 4.1 percent, the tracker now shows as of August.
Most workers who did get a raise this year received it by staying put: 50 percent earned a bump at their current job, a share that’s barely moved in four years (49 percent in 2024 and 48 percent in both 2023 and 2022). Far fewer are seeing gains by moving to a new employer. Thirteen percent found a better-paying job in 2025, down from 20 percent in 2024, 26 percent in 2023 and 21 percent in 2022.
Job hopping has traditionally been the surest way to secure a bigger paycheck, but that advantage is fading in today’s weaker market. In August 2022, job switchers saw their wages grow an average of 8.4 percent, compared with 5.6 percent for those who stayed put, Atlanta Fed data shows. Today, that premium has narrowed to 4.4 percent versus 3.8 percent. With hiring slowing and more workers competing for fewer openings, employers don’t feel the same pressure to raise pay.
Workers are losing confidence that they’ll get a pay increase
More than 2 in 5 workers (42 percent) say they aren’t confident that they’ll find a better-paying job or get a pay raise at their current position in the next 12 months, up from 36 percent in 2024. Almost half of workers (49 percent) say they are confident, while another 9 percent say they don’t know.
Lower-income workers and Americans with the most education were more likely to say they are not confident about getting a pay increase.
Percentage of those who are “not confident,” by income:
Making under $50,000 a year: 44 percent;
Making between $50,000 and $99,999: 42 percent; and
Making $100,000 or more a year: 37 percent.
Percentage of those who are “not confident,” by education:
Post-graduate degree: 48 percent;
4-year degree: 41 percent;
Some college or a 2-year degree: 42 percent; and
High school diploma or less: 40 percent.
The labor market feels toughest for the youngest
Gen Z’s outlook took the biggest hit in Bankrate’s poll. Half of Gen Z workers (50 percent) say they’re confident about getting a pay increase in the next year, down sharply from 61 percent in 2024 — the steepest drop of any generation. They were also far less likely to land a better-paying job this year: 17 percent did, compared with nearly one-third (32 percent) a year ago.
Millennial workers are also seeing fewer opportunities. Seventeen percent reported finding a better-paying job in 2025, down from 26 percent in 2024. Their confidence in getting a raise over the next year slipped as well, falling to 55 percent from 60 percent.
Older workers are experiencing more stability. Baby boomers were the most likely to say they received neither a pay increase nor a new job this year (54 percent), but that matched last year’s level of 54 percent. Their confidence in a future raise even ticked up, rising to 44 percent from 40 percent.
Meanwhile, 10 percent of Gen X workers found a better-paying job, down from 15 percent last year, and their confidence about getting a raise fell to 43 percent from 48 percent in 2024.
These findings point to a deeper reality for young people: The job market is barren. Layoffs are low, but companies aren’t growing much either, with the hiring rate now the lowest since 2013, Labor Department shows. Entering the job market at a time when few companies are hiring, young workers between the ages of 22 and 27 are facing a higher unemployment rate than the rest of the workforce, according to the New York Fed.
Many workers still plan to ask for a raise or look for a new job
Sometimes, a more challenging job market can make people more cautious about rocking the boat at work. Fewer Americans job hop during weaker job markets, historic Labor Department data shows. Wage growth cools in slower markets, and other workers may grow weary about asking for additional flexibility.
Today’s job market slowdown hasn’t been stopping many workers from looking for more from their current roles, according to Bankrate’s Worker Intentions Survey.
Over the next 12 months, workers say they’re likely to:
Look for a new job: 48 percent;
Ask for a raise: 44 percent;
Ask for more flexibility (i.e. different hours, remote work, etc.): 36 percent;
Start their own business: 25 percent;
Relocate for a job: 18 percent;
Quit a job: 18 percent.
“As the job market has normalized following the period a few years ago when it was widely described as red-hot, many workers are seeking better pay or new work,” Bankrate Senior Economic Analyst Mark Hamrick says.
Even so, those ambitions are more muted than in recent years, reflecting what some economists describe as “job hugging.” Back in 2023, 56 percent of workers said they planned to look for a new job. Two years ago, nearly 30 percent expected to quit and more than one-quarter (26 percent) said they’d relocate.
Year
Look for a new job
Ask for a raise
Ask for more flexibility
Relocate for a job
Quit a job
2025
48 percent
44 percent
36 percent
18 percent
18 percent
2024
48 percent
43 percent
42 percent
22 percent
25 percent
2023
56 percent
47 percent
42 percent
26 percent
30 percent
Young people are most likely to take steps that include searching for a new job or asking for a raise — a trend that has been found in Bankrate polling dating back to 2021.
More than half (53 percent) of Gen Z workers are likely to search for a new job. That compares to 49 percent of millennial workers (ages 29-44), 48 percent of Gen X workers (ages 45-60) and 1 in 4 baby boomer workers (ages 61-79).
Additionally, nearly one-quarter of Gen Z workers say they’re likely to quit a job in the next year, more than any other generation:
Gen Z workers: 23 percent
Millennial workers: 17 percent
Gen X workers: 16 percent
Baby boomer workers: 1 in 10
Also, a majority of Gen Z and millennial workers say they’re likely to ask for a raise at work in the next year:
Gen Z workers: 51 percent
Millennial workers: 50 percent
Gen X workers: 39 percent
Baby boomer workers: 1 in 5
Many workers are still worried about their job security
As fears of layoffs rise and more workers face longer job hunts, most workers (69 percent) say they are worried about their job security, Bankrate’s Worker Intentions Survey finds. More than a quarter (27 percent) say they are more worried about their job security since the beginning of the year, while 42 percent of workers say their level of worry about job security hasn’t changed since the beginning of the year.
The level of worry, however, is about the same as it was in a similar poll from 2024, which found that 28 percent were more worried about their job security and 70 percent have some level of worry.
Another 15 percent say they’re less worried about their job security. Sixteen percent of workers say they’ve never been worried about their job security.
Regardless of whether they’re ready to jump ship, the majority (65 percent) of workers say their employment or career situation is about the same as it was in the beginning of 2025. Additionally, 1 in 5 workers (22 percent) say their career situation has improved, while 14 percent say it’s worsened.
Though 2025 is proving challenging for many workers, these trends have persisted for a while. In 2024, 57 percent of workers said their employment/career situation was about the same compared to when the Federal Reserve started raising interest rates in March 2022.
3 tips when looking for a new role in today’s challenging job market
Today’s job market isn’t ideal for looking for a new role. But whether you’re looking for a higher salary, better work-life balance or if you’re just worried about your job security, there’s a few things you can do to prepare for a job hunt.
“Most forecasters see inflation picking up and the job market weakening modestly over the next year,” Hamrick says. “In any case, it is prudent for workers to keep their skills sharpened and their contacts activated. If one plans to look for work in the coming months or is forced into that situation by unemployment, these proactive steps should make for an easier transition.”
1. Boost your savings
Before making any large life change, like starting a new job, it’s important to make sure your finances — especially your savings — are up to snuff. Traditionally, a well-stocked emergency savings fund might have three to six months of expenses in it, but as more workers are unemployed for six months or more, you might want to consider keeping more than six months of expenses saved. This is also a smart move if you’re concerned about your job security — the more money you have saved for emergencies, the more secure you may feel.
There are a few things you can do to increase the amount you save each month:
Create a budget, or update your budget if you haven’t touched it in a while.
Review your spending habits for unwanted expenses and places where you can cut back. See if you can cut $50 to $100 of spending per month by cutting back on unused subscriptions, cooking more at home or renegotiating your bills.
Set a savings goal with a specific time period and amount, such as $5,000 in a year. This will help hold you accountable.
Automate your savings by setting a recurring transfer every time you’re paid.
Keep your savings in a high-yield savings account, which will earn more interest than a traditional savings account, essentially offering a free boost to your savings.
2. Understand your strengths as a job candidate to help you negotiate
Job interviews are an exercise in marketing yourself. Before starting the interview process, write down three soft skills and three hard skills you bring to the table — include these in your resume, too. Soft skills could be communication, leadership, conflict management, teamwork, problem-solving or time management. Hard skills, on the other hand, could be any technical skills or certifications and degrees you’ve earned. Also, in your resume and in your interviews,note tangible accomplishments from the past few years. These could be new initiatives you’ve started, financial targets that you’ve met, ways you’ve optimized your work or other accomplishments.
Understanding your skills will help you be able to better negotiate when it’s time to discuss salary and benefits, either when asking for a promotion at your current role or when you’re looking for your next job. Even if it’s an employer’s job market, you should still advocate for equitable pay and benefits. Ask for what you deserve.
“Between the moves by the federal government, rapid advances in technology including artificial intelligence, and the changing global landscape, there is a high level of uncertainty but also plenty of opportunities,” Hamrick says. “Workers with the right skill sets and can-do attitudes will be in the best position to win.”
3. Connect with your network
If there were ever a time to go through that pile of business cards in the bottom of your desk drawer, now’s it. Your network, whether that’s connections on LinkedIn, former employers and colleagues, fellow college alumni or others in your community, are a great resource when looking for a new role. If you’re looking for your next job, label yourself as “Open to Work” on LinkedIn and prioritize growing your network by reaching out to former colleagues or attending local networking events.
Pay Raise Survey Methodology This survey was conducted using an online interview administered to members of the YouGov Plc panel of individuals who have agreed to take part in surveys. All figures, unless otherwise stated, are from YouGov Plc. The total sample size was 2,497 U.S. adults, including 1,175 who are employed. Fieldwork was undertaken between Sept. 2-4, 2025. The survey was carried out online and meets rigorous quality standards. It gathered a non-probability-based sample and employed demographic quotas and weights to better align the survey sample with the broader U.S. population
Worker Intentions Survey Methodology The study was conducted using an online interview administered to members of the YouGov Plc panel of individuals who have agreed to take part in surveys. All figures, unless otherwise stated, are from YouGov Plc. The total sample size was 2,000 U.S. adults, of whom 1,005 are working full-time or currently looking for full-time employment. Fieldwork was undertaken between June 6-16, 2025. The survey was carried out online and meets rigorous quality standards. It gathered a non-probability-based sample and employed demographic quotas and weights to better align the survey sample with the broader U.S. population.
©2025 Bankrate.com. Distributed by Tribune Content Agency, LLC.
