U.S. workers saw their wages rise 4.5 percent in 2021, according to an analysis by the Joint Economic Committee (JEC).
It represents the fastest pace of wage growth in almost four decades, the JEC report stated. Gains were particularly strong for job switchers and low-income workers. Specifically, median wages for the lowest-income workers increased an average of 6.1 percent while job changers saw their wages rise 5.3 percent on average. Workers who stayed in the same job averaged a 4 percent increase last year.
“After decades of stagnating wages among lower- and middle-income workers, strong wage gains in 2021 are helping workers and families meet their needs and thrive in our economy,” JEC Chairman Don Beyer (D-VA) said. “After weathering the worst of the coronavirus recession, these wage gains are an indication of increased worker bargaining power and reflect progress toward ensuring workers are able to benefit from economic growth. This is how we, as a nation, move forward and advance an economy that works for all—not just the wealthy few.”
Since December 2019, workers in trade, transportation and utilities, wholesale trade, retail trade, and leisure and hospitality have all experienced raises, the report said. Also, the Biden administration’s $15 minimum wage for federal contractors has raised pay for 300,000 workers, while the Labor Department is lifting wages for over 11 million tipped workers.
“Yet, we know that inflation caused by the pandemic and exacerbated by Putin’s price hikes are depriving workers and families of the full benefits of our strong recovery. The Infrastructure Investment and Jobs Act was a down payment to address decades of underinvestment in our infrastructure, bolster supply chains and drive future economic growth. With the bipartisan competition bills, we have an opportunity to lower out-of-pocket costs for workers and families, spur job creation and promote U.S. competitiveness now and for generations to come,” Beyer said.