The year has just kicked off, and anxieties around the cost of living are already high — the spread of bird flu has already sent beef and egg prices up, and the possibility of the Trump administration imposing tariffs on Mexican, Canadian and Chinese goods spells economic trouble for employers and Americans alike.
And given the state of wages, 2025 does not look promising. According to software company BambooHR, 50% of employees are struggling to make ends meet, with 60% paying off debt that, on average, consumes 30% of their paycheck. Moreover, raises have shrunk, dropping from a 6.2% increase in 2022 to 3.6% in 2024. BambooHR estimates that two in five salaried employees didn’t receive raises last year.
