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Pay against the cost of living: is your raise keeping up?

A raise only helps if it beats what things cost. The numbers below are the Bureau of Labor Statistics’ latest, for all private-sector workers and all urban consumers, and the stories follow what employers are paying and what workers are doing about it.

Is this you?

Your pay rose less than your bills, or you have not had a raise in a year. Your free Market Reality Assessment shows what the market pays for your role and how to ask for it.

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Signs this is you

  • Your last raise was smaller than the rise in rent, groceries or insurance.
  • You have been in your role a year or more without a pay conversation.
  • You suspect you are paid below the market but have no number to take into the room.

In the news

Article · Investopedia · Nov 4, 2026

Job switchers out-earn stayers, most of all Gen Z

Gen Z job switchers saw roughly four times the pay growth of stayers in early 2026 and millennials about twice, while Gen X sees less benefit from switching, according to Investopedia.

  • News
  • Pay and cost of living

Article · Forbes · Oct 25, 2026

Six AI skills that could lead to a bigger paycheck in 2027

Forbes reports on a new study suggesting your career advantage lies in showing how your AI skills improve work, something managers are paying more for.

  • Tips and tricks
  • Pay and cost of living

See every story on this topic

The numbers

  • +3.2%

    Average hourly earnings, last 12 months

    All private-sector employees

  • +3.7%

    Consumer prices, last 12 months

    CPI-U, all items

  • −0.6 pts

    Prices are ahead of pay

    Pay change minus price change

Bureau of Labor Statistics, September 2026, seasonally adjusted. These are national averages for all workers, not white-collar roles or your city.

In your favor

  • A market number changes the conversation

    A raise request that names what comparable roles pay, in your area and at your level, is harder to wave off than one based on effort or tenure.

  • Moving is often the biggest raise

    Pay set at hiring tends to reflect today’s market, while raises inside a company follow a budget. Knowing your outside value shows which path pays more.

Watch for

  • Averages hide your situation

    The national figures are across all workers. Your field, your city and your level can run well above or below them, so use them as context, not as your number.

  • Housing and insurance can outrun the index

    The overall price index blends many things. If your biggest bills are rent and premiums, check those categories rather than the headline.

Go deeper

Other journeys: Your rights at work and on the way out, Benefits that matter, Side hustles and second incomes