Nearly All U.S. Workers Say Their Wages Haven't Kept Up With the Cost of Living

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Nov 10, 2025, 09:30 ET

Monster survey reveals financial strain drives workers to cut back, tap savings, and reconsider their careers

GUAYNABO, Puerto Rico, Nov. 10, 2025 /PRNewswire/ -- According to Monster's latest Cost-of-Living Report, the overwhelming majority of U.S. workers say their paychecks are no longer keeping pace with inflation. In a new survey of more than 1,200 employees, 95% report that their wages have not kept up with the rising cost of living, prompting widespread financial stress and reshaping workplace behavior.

The findings paint a stark picture of how economic pressure is impacting both personal finances and career decisions. From scaling back spending to seeking higher-paying roles, workers are making significant adjustments to stay afloat.

"Workers are doing more with less, and they're feeling the strain," said Vicki Salemi, Monster's Career Expert. "Many are taking on debt, dipping into savings, or delaying major life goals just to manage day-to-day expenses. Employers can't ignore this reality, reassessing compensation and benefits has become critical to retaining talent and supporting employee well-being."

Key Findings

95% of workers say their wages have not kept up with inflation.
Only 9% have received a raise or salary adjustment to offset higher cost of living.
76% say recent economic policies under the new administration have directly affected their financial planning.
94% identified groceries as the fastest-rising expense in the past year.
75% have accessed their savings to cover essentials, with nearly one-third using a significant portion.

Financial Impact: Cutting Back and Tapping Savings

Rising costs are forcing workers to make tough financial choices:

75% have cut non-essential spending (up from 69% in 2024).
58% delayed major purchases like a home or car.
56% are actively searching for higher-paying jobs.
55% reduced contributions to retirement or emergency funds.
42% took on new debt through credit cards or loans.

Career Impact: Burnout and Job Security Concerns

Financial pressure is not only affecting wallets—it's influencing career behavior and workplace morale:

69% say it's harder to find a new job as hiring slows (up from 57% in 2024).
50% worry about job security as employers cut costs.
40% report burnout linked to financial stress.

What This Means for Employers

Monster's findings suggest an urgent need for employers to address the widening gap between wages and living costs. As financial anxiety grows, so can the risk of disengagement and turnover.

To retain talent, employers should:

Reevaluate compensation and cost-of-living adjustments.
Offer financial wellness programs or budgeting support.
Explore flexible benefits that help offset everyday costs.
Foster open communication about pay transparency and growth opportunities.

Methodology: This poll was conducted by Monster in May 2025 among more than 1,200 U.S. workers across industries and experience levels. Respondents were asked about their comfort level with political discussions, experiences of pressure to disclose beliefs, and the perceived impact of politics on their workplace relationships and career growth.

For more information, please view the full report at https://www.monster.com/career-advice/job-search/news-and-insights/cost-of-living-poll-2025 or contact Kate Keane at [email protected].

About Monster
Monster is a leading job search and online recruiting platform that helps people not just find jobs, but discover where they belong. For more than 30 years, Monster has been a trusted worldwide leader in connecting people and possibilities, empowering individuals to pursue opportunities while helping employers hire faster and with greater confidence. Recognized on G2 as a category leader and featured by CNN, USA Today, CNBC, Inc., and Forbes, Monster continues to open new doors for people and businesses everywhere. Follow Monster on LinkedIn, Facebook, X, Instagram, and Pinterest. Learn more at https://www.monster.com/.