The inflation-adjusted wage gains that many American workers accumulated during the first year of President Donald Trump's second term have largely disappeared following a recent spike in consumer prices.
Real wages for production and nonsupervisory workers, a closely watched measure of earnings for rank-and-file employees, are up just 0.1% since Trump returned to office in January 2025 after a sharp erosion of purchasing power over the last four months. The decline came as inflation accelerated, largely driven by rising energy costs tied to the ongoing conflict involving Iran.
