62% of Workers Say Their Pay Has Not Kept Pace With Inflation, The Highest In Four Years Of Polling

57% of workers received a pay increase over the past 12 months, a new low

NEW YORK – October 14, 2025 – Nearly 2 in 3 workers (62%) say their income has not kept pace with increases in household expenses due to inflation over the past 12 months (i.e., since September 2024) according to Bankrate’s Pay Raise Survey, marking the highest percentage in four years of polling. This is up from 59% in 2024, 60% in 2023 and 55% in 2022. Meanwhile, 27% of workers say their income kept up with or exceeded inflation (down from 32% in 2024, 29% in 2023 and 33% in 2022) while 11% don’t know.

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Over the past 12 months (i.e. since September 2024), less than 3 in 5 workers (57%) got a pay increase, either by finding a new, better-paying job (7%), receiving a raise at their current employer (44%) or both (6%). This is the lowest in four years of polling, down from 61% in 2024, 64% in 2023 and 61% in 2022.

Half of workers (50%) report getting a pay increase at their current position, up from 49% in 2024 and 48% in both 2023 and 2022. However, the share of workers who earned a pay increase by switching to a better-paying job fell to 13%, down from 20% in 2024, 26% in 2023 and 21% in 2022. On the other hand, 43% of workers received no pay increase at all over the past 12 months, up from 39% last year.

Of those in the workforce, millennials (ages 29 to 44) were most likely to say they received a pay raise in the past year (53%), followed by Gen Xers (50%; ages 45 to 60), Gen Zers (46%; ages 18 to 28) and baby boomers (44%; ages 61 to 79). Just 17% of Gen Zers found a new, better-paying job this year, down from 32% in 2024, the sharpest drop across generations. The same share of millennials (17%) say they found a better-paying job this year, down from 26% in 2024, compared to 10% of Gen X workers, down from 15% last year, and only 5% of baby boomers, roughly in line with last year (6%).

“Americans are being thrust between the worst of both worlds in economics: a slowing job market and rising inflation,” says Bankrate Economic Analyst Sarah Foster. “Four years ago, when inflation surged at the fastest pace many Americans had ever seen, workers at least had a red-hot job market and historic bargaining power to help them lock in record pay increases and blunt at least some of the impact of higher prices. That’s no longer the case.”

Workers who received some kind of pay increase were less likely this year to say their pay kept pace with inflation (at 34% in 2025 versus 42% in 2024). The majority of workers who saw a pay bump in 2025 (58%) say their income still fell short of inflation, while 7% were not sure.

Of those in the workforce, the highest-income workers (those making $100,000+ annually) were most likely to say their pay kept pace with inflation, at 34%, versus those making between $50,000 and $99,999 and workers making less than $50,000 a year (26% each). By generation, baby boomer (70%) and Gen X (68%) workers were the most likely to say that their pay has not kept pace with inflation, compared to 60% of millennials and 52% of Gen Z workers.

As the job market continues to show signs of cooling, about 2 in 5 workers (42%) say they are not confident they will find a better-paying job or get a pay raise at their current position over the next 12 months, up from 36% in 2024. Gen Z workers saw the steepest drop in confidence about getting a pay increase over the next year (50% vs. 61% in 2024), followed by millennials (55% vs. 60% in 2024) and Gen Xers (43% vs. 48% in 2024). Meanwhile, baby boomer workers’ confidence edged higher (44% vs. 40% in 2024).

“In a slower job market, adaptability is everything,” Foster says. “Workers who consistently show their value and build new skills to do their jobs better or more efficiently will always be in demand. Even as opportunities grow scarcer, top performers are the ones most likely to be rewarded. Think about your unique ‘you factor’ — what sets you apart — and don’t be afraid to market yourself.”

Methodology:

This survey has been conducted using an online interview administered to members of the YouGov Plc panel of individuals who have agreed to take part in surveys. All figures, unless otherwise stated, are from YouGov Plc. The total sample size was 2,497 U.S. adults, including 1,175 who are employed. Fieldwork was undertaken between Sept. 2-4, 2025. The survey was carried out online and meets rigorous quality standards. It gathered a non-probability-based sample and employed demographic quotas and weights to better align the survey sample with the broader U.S. population.

*Previous surveys were conducted on October 9-11 (2024), October 26-30 (2023), and August 17-19 (2022), and followed the same sampling/weighting procedures.

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For more information:
Sara Dramer
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Bankrate