US incomes have FALLEN for a third straight year: Surging inflation is blamed for median household income dropping to $74,580 in 2022 – down 2.3% from 2021

Americans are experiencing a third straight year of declining incomes due to rising inflation.

Median household income fell to $74,580 in 2022, down 2.3 from the 2021 estimate of $76,330, representing a 4.7 percent decline from the 2019 peak.

This is evident from the latest report from the Census Bureau the ongoing economic challenges that American households have faced since the start of the crisis COVID-19 pandemic, which was exacerbated by a four-decade high in inflation last summer due to supply chain disruptions and energy price spikes caused by the Ukraine conflict.

However, there is hope on the horizon. Experts predict that things could look different in the coming year, as reported by the Wall Street Journal.

The drop in income represents a decline of 4.7 percent since their peak in 2019

The latest Census Bureau report shows that rising inflation and 2022 pandemic disruptions continue to impact Americans’ living standards

Earnings and inflation trends have improved, thanks to a strong labor market and stabilizing price increases, said Bill Adams, chief economist at Comerica Bank. Wall Street Journal.

“As we look to the present and the future, the prospects are brighter that wages can make up some of the ground lost in recent years,” Adams said.

Wage growth for the average worker began to outpace inflation in December 2022, with inflation-adjusted wages rising about 3 percent in July, according to data from the Atlanta Fed Wage Tracker and the Labor Department.

This increase in household incomes can be attributed to workers re-entering the labor market and has contributed to solid economic growth in the current year, despite the Federal Reserve’s efforts to combat rising inflation through higher interest rates.

Inflation is also showing signs of moderation this year as the Fed hiked rates, bringing annual rates down from about 9 percent in June 2022 to about 3 percent in July.

The Census Bureau’s annual report on the financial well-being of American households shows that median household incomes in 2022 were highest in the West (about $82,900) and the Northeast (about $80,400), followed by the Midwest (about $73,100) and the South (about $80,400). $68,200).

Nevertheless, the official U.S. national poverty rate in 2022 remained similar to the previous year at 11.5 percent, and included approximately 37.9 million people living in poverty.

However, this measure does not take into account taxes paid by households or non-cash government support, such as tax breaks, housing subsidies and free school meals.

The average income of all workers in 2022, adjusted for inflation, also saw a decline of about 2.2 percent, to about $48,000, compared to the previous year.

Among full-time, year-round workers, median income fell 1.3 percent to about $60,100.

The total number of employees increased by approximately 2.8 million, with a notable increase of four million in the number of full-time, year-round employees, for a total of 121.4 million.

The gender pay gap among full-time workers remained relatively stable throughout the year, with a gender earnings ratio of 84 percent in 2022.

A study tracked how average incomes in America’s largest cities changed between 2019 and 2021 – highlighting how some areas have seen impressive growth while others have fallen

Baton Rouge fared worst after median income fell from $45,819 to $41,257

In San Bernardino, the median income was $65,311, following the largest percentage increase in the country from 2019 to 2021

Separate research from Refin found that only four metropolitan areas in the country have average mortgage prices lower than average rents. The four areas where mortgages are the highest compared to rents are all in California

There have also been recent reports of huge differences in income growth in US cities between 2019 and 2021.

Median incomes in San Bernardino, California, rose 31.3% to $65,311, while at the other end of the table in Baton Rouge, Louisiana, they fell 9.6% to $45,819.

The stark difference is laid bare in a study that looked at how average incomes in America’s largest cities changed over the period – highlighting how some areas have enjoyed a period of impressive growth, while others have fallen.

San Bernardino, where median incomes reached $65,311 after the city saw the largest percentage increase in the country, was closely followed by Huntsville, Alabama, where incomes grew 30.21 percent, the SmartAsset study found.

Declines in New York and San Francisco showed that wealthy cities were not immune to declines.

The top five was rounded out by Moreno Valley, California (21.99 percent), Winston-Salem, North Carolina (21.65 percent) and Toledo, Ohio (20.27 percent).

Baton Rouge fared the worst after the average income fell from $45,819 to $41,257.