For Third Year in a Row, Over 9 in 10 Workers Say Wages Aren’t Keeping Up With Cost of Living

For the third consecutive year, more than nine in 10 U.S. workers say their wages are not keeping up with the cost of living, according to the 2026 Monster® Cost of Living Report. In 2026, 93% of workers report their pay is falling behind rising costs, consistent with 95% in both 2024 and 2025, signaling a sustained pattern rather than a one-time spike.

At the same time, year-over-year data shows that employer response is declining, savings usage is increasing, and more workers are actively trying to earn more, often without success.

“Workers aren’t just feeling the impact of rising costs, they’re adjusting how they live and work in response,” said Vicki Salemi, Career Expert at Monster. “We’re seeing people cut spending, use savings, and actively look for higher pay but most aren’t seeing results.”

Three-year trends show a consistent gap between rising costs, limited employer response, and increasing financial pressure on workers.

Key Findings

• Wages continue to lag for the third straight year: More than 9 in 10 workers (93%) say their pay isn’t keeping up, consistent with 95% in both 2024 and 2025
• Employer response continues to decline year over year: Just 7% report receiving inflation-related pay increases, down from 9% in 2025 and 11% in 2024
• Savings depletion is increasing year over year: 85% have dipped into savings (up from 82% in 2024 and 75% in 2025), including 42% who say they’ve used a significant portion
• Raises remain consistently low: 71% say their most recent salary increase was below 3%, reinforcing a multi-year pattern of minimal wage growth
• Job search urgency is rising: 74% are looking for a higher-paying role, up from 62% in 2024 and 56% in 2025
• But success remains consistently low: Just 3% say they successfully found and accepted a higher-paying job
• Financial pressure is driving sustained behavior changes: 61% have cut non-essential spending, 38% are relying more on credit or loans, and 34% have reduced retirement savings
• Workers report a constrained job market: 58% say it’s harder to find a job as companies cut costs, while 41% worry about job security

Wages Continue to Lag Behind Rising Costs

Across three consecutive years of Monster data, most workers report that their earnings are not keeping pace with the cost of living:

93% say wages are not keeping up (vs. 95% in 2024 and 2025)
71% say their most recent salary increase was below 3%
Despite slight year-over-year variation, the overall pattern remains consistent.

Employer Response Is Declining

While cost pressures remain high, reported employer action has decreased. Seven percent say their employer increased pay due to inflation in 2026, down from 9% in 2025 and 11% in 2024.

When asked how employers should respond, 66% of workers say direct wage increases are the most important action, far outweighing bonuses, flexibility, or expanded benefits.

More Workers Are Using Savings to Stay Afloat

Financial strain is increasingly reflected in how workers manage their finances:

85% say they have dipped into savings (up from 82% in 2024 and 75% in 2025)
42% report using a significant portion of their savings
Additional financial adjustments include:

61% cutting non-essential spending
38% relying more on credit or loans
34% reducing retirement savings
Workers Are Trying to Earn More But Struggling to Do So

More workers are attempting to offset rising costs by increasing income:

74% say they are looking for a higher-paying job, up from 62% in 2024 and 56% in 2025
Only 3% say they successfully found and accepted a higher-paying role
At the same time:

58% say it’s harder to find a job as companies cut costs
41% are worried about job security
42% are considering taking on an additional job
Financial Pressure Is Affecting Work and Well-Being

The cost-of-living squeeze is also impacting workplace experience:

38% say burnout has negatively affected their performance
41% report concerns about job security
42% are considering taking on additional work
The Bottom Line

Monster’s three-year cost-of-living data shows a consistent pattern: most workers report that their wages are not keeping up with rising costs, while reported employer response remains limited. The 2026 findings highlight how workers are responding by adjusting spending, drawing on savings, and seeking higher pay, often without achieving the outcomes they are looking for.

Methodology

This survey was conducted by Pollfish on May 17, 2026, among more than 1,000 currently employed U.S. workers. Respondents answered a series of multiple-choice questions examining workplace culture, management dynamics, and candidate preferences, with a particular focus on workplace red flags and green flags that influence engagement, retention risk, and perceptions of support. The sample included representation across generations: 17% Gen Z (born 1997 or later), 25% Millennials (born 1981–1996), 28% Gen X (born 1965–1980), and 28% Baby Boomers (born 1946–1964). Respondents identified their gender as 54% female, 45% male, and 1% non-binary.

For more information, please view the full report at https://www.monster.com/career-advice/research/cost-of-living-report or contact Shanna Briggs at shanna.briggs@bold.com.