Majority of U.S. Workers Received Pay Increase in Past 12 Months

Three in five workers (61%) received a pay increase in the past 12 months (i.e. since October 2023), either by finding a better-paying job (12%), earning a raise at their current position (41%), or both (8%), according to a BankRate survey.

This is down from 64% in 2023 and the same as in 2022.

Nearly half of all workers (49%) report getting a pay raise at their current position in 2024. The share of workers who switched to a better-paying job, however, hit a three-year low, falling to 20% in 2024 after hitting 26% in 2023 and 21% in 2022.

By generation, Millennials were most likely to say they received a pay raise at their current job in the past year (56%), along with 48% of Gen X, 43% of Gen Z and 42% of Baby Boomers.

Younger workers were more likely to say they found a better-paying job in the past year, with 32% of Gen Z and 26% of Millennials saying as such, compared to 15% of Gen X, and 6% of Baby Boomers.

Despite these pay rises, the majority of employed Americans (59%) say their income has not kept pace with increases in household expenses over the past 12 months, little changed from 60% in 2023.

About one-third of workers (32%) say their income has kept up with inflation, while 10% don’t know.

Nearly three-quarters (73%) of workers who did not earn a pay increase say that their pay has not kept pace with inflation, while only 16% say it has.

Even among workers who earned a raise, 50% say their pay has not kept up with inflation, compared to 42% who say it has.

The lowest-income earners (earning less than $50,000 per year) are more likely to say their pay has not kept up with inflation compared to the highest-income earners (earning $100,000+ per year), at 63% versus 54%.

Baby Boomer workers are also most likely to say their pay has not kept up with inflation(73%), compared to 70% of Gen X, 52% of Millennials, and 40% of Gen Z.

Over half of workers (53%) say they are confident they will receive a pay increase in the next 12 months, including 33% who are somewhat confident and 20% who are very confident.

Younger workers are more likely to say they feel more confident they will get a pay increase in the next 12 months, at 61% of Gen Z and 60% of Millennials compared to 48% of Gen X and 40% of Baby Boomers.