A bigger paycheck can still leave you with less room at the end of the month. To understand why, compare the change in your pay with the change in prices over the same period. A survey about financial stress can describe how workers feel, but it can't do that calculation for you.
What your raise actually measures
Nominal pay is the dollar amount you earn. Real pay adjusts that amount for changes in prices. If pay rises more slowly than the prices used in the comparison, purchasing power falls. Start with your hourly rate or salary, then keep your hours and pay period consistent.
The latest national reading
The September 2026 BLS release reported that real average hourly earnings for employees on private nonfarm payrolls fell a preliminary 0.7% from September 2025, seasonally adjusted. They fell 0.5% from August. Those are averages across jobs, including part-time work. They don't mean every worker received a pay cut or experienced the same price increases.
Try the calculation
Suppose your hourly pay rises from $25 to $26, a 4% increase. If the price index rises 5% over that same period, divide 1.04 by 1.05 and subtract one. Your inflation-adjusted hourly pay falls about 0.95%. These are hypothetical figures, not a claim about today's average raise.
Your bills have their own pattern
The Consumer Price Index reflects an average spending basket. Your budget may put more weight on rent, childcare or medical care. BLS explains that an individual's experience can differ from the index. Use CPI as a reference, then look at the expenses that take the largest share of your income.
Hours can change the result
A higher hourly rate won't necessarily produce a larger monthly paycheck if you're working fewer hours. Check overtime and unpaid time as well. For household planning, compare the money actually deposited after deductions, while keeping that separate from the hourly earnings figures in a national release.
Put older survey figures in their year
A Bank of America report released in 2023, during Joe Biden's presidency, said 67% of surveyed employees felt living costs were outpacing salary or wage growth. That was a response about their circumstances then. It wasn't a measured national wage-growth rate, and the finding shouldn't be presented as a current survey result.
What the newer survey says
Bank of America's 2026 report found that 55% of surveyed employees rated their financial wellbeing as good or excellent. Yet 75% cited the cost of living as a challenge to financial security. Feeling reasonably secure and worrying about bills can coexist. Neither answer measures a worker's inflation-adjusted raise.
Check who was asked
The 2026 employee survey covered 941 full-time workers participating in 401(k) plans. It was conducted from December 4, 2025, to January 26, 2026. Its answers shouldn't be extended automatically to workers without those plans, unemployed people or every household. Publication dates and survey dates answer different questions.
Include workplace benefits carefully
When comparing jobs or discussing compensation, ask about health premiums, retirement contributions and commuting costs alongside salary. Separate benefits from money available for this month's bills. A benefit you can't use for rent doesn't solve an immediate cash shortfall, even if it adds value to the overall package.
Slower inflation leaves earlier increases in place
When inflation slows but remains positive, prices are still rising, just more slowly. That doesn't return your grocery basket to its earlier price. Compare the same quantities and products where possible; a larger total caused by buying more isn't the same as paying more for the same things.
Bring the comparison to your pay discussion
Gather pay statements and recurring bills from the same two periods. Note changes in hours, deductions and household needs before deciding how much of the gap reflects prices. For a raise discussion, bring your responsibilities and results too, and ask when the next compensation review will take place.
