According to Monster’s 2025 Work Watch Report, a staggering 95% of workers feel their wages have not kept up with the rising cost of living. Despite this, only 10% of workers have received a raise or salary adjustment to account for inflation. To cope, 44% of workers have started searching for higher-paying jobs, while 17% have taken on a second job or part-time work to make ends meet. However, 38% report that inflation has not impacted their careers.
Workers have cited several reasons for expecting higher wages, including the increased cost of living, taking on more responsibilities, and possessing in-demand skills. Giacomo Santangelo, a Monster economist, highlighted that 85% of workers expect increasing salaries to offset inflationary pressures. Yet, only 11% have received raises that reflect the rising cost of living, leading to a significant financial strain for many workers.
Financial adjustments have become essential for workers to manage inflation. The report reveals that 82% have dipped into their savings, and 8% expect to do so soon. Additionally, 69% of workers have reduced spending on non-essentials, 43% are relying more on credit or loans, and 41% have cut back on retirement contributions. Beyond wage concerns, over a third of workers did not receive an expected bonus in the past year, and 15% experienced salary cuts.
Employers are also feeling the strain. A third of employers report that employees’ salary expectations are putting pressure on the bottom line, with 42% predicting challenges in meeting these expectations during recruitment. Despite these pressures, a recent Mercer report indicates that employers are still planning salary increases in 2025, with a 3.3% increase for merit raises and a 3.7% increase for total salaries for nonunion workers.
In conclusion, workers are facing financial challenges due to inflation, with many seeking higher-paying jobs or additional work to bridge the gap. While employers recognize the pressure of salary expectations, they are still preparing to offer some increases in 2025, though these may not fully meet workers’ expectations.
