Most Americans have felt the weight of inflation on their budgets over the last few years, but there are still a handful of places where Americans’ lives have improved financially, according to a study by MyPerfectResume.
The online resume building site analyzed wage data in all 50 states against inflation to find where paychecks gained or lost value from 2020 to 2024. Bureau of Labor Statistics data show the average American worker’s pay rose 18% to $75,600 from about $64,000 during those years, but inflation soared about 21%. Despite every state in the country showing wage increases in dollars, the average Americans lost approximately 2.6% in income after adjusting pay increases for inflation.
“In other words, the nation got a raise on paper, but a pay cut in reality,” wrote Jasmine Escalera, a certified career coach, in the report
But where you live made a difference, the study showed. Americans in 41 states lost purchasing power, but Americans living in nine states managed to eke out a better standard of living, the study said. Among states that saw declines, some slid more rapidly than others, it showed.
“The findings highlight a crucial truth: A high-paying job doesn’t automatically mean a higher standard of living,” Escalera said. Most of “the American workforce entered the mid-2020s with more pay on paper, but less real financial freedom.”
