More than 9 in 10 surveyed workers report that their wages aren’t keeping up with the cost of living, so they’re looking for work elsewhere.
By Gillian Manning
Pay raises that don’t exceed the inflation rate don’t alleviate financial strain, and employees notice. In Monster’s 2026 Cost of Living Report—which surveyed more than 1,000 U.S. active workers—93% of employees say their wages are not keeping up with rising costs. This is the third year in a row that Monster has gotten a similar result, with 95% saying the same in 2024 and 2025.
Only 7% report that their employer increased pay because of inflation, which is down from 9% in 2025 and 11% in 2024. And most workers (71%) say their most recent salary increase was below 3%. For reference, the annual inflation rate was 2.9% in 2024, 2.7% in 2025, and the yearly inflation rate between July 2025 and July 2026 (the most recent data available) was 3.4%. So, raises at and under 3% don’t notably bolster an employee’s financial wellness.
As a result, 74% of employees report that they are looking for higher-paying roles—up from 62% in 2024 and 56% in 2025.
Employees are adjusting their financial habits to try and make the pay work, as 61% report cutting non-essential spending, 38% are relying more on credit or loans, and 34% are reducing retirement savings.
“Workers aren’t just feeling the impact of rising costs, they’re adjusting how they live and work in response,” said Vicki Salemi, career expert at Monster. “We’re seeing people cut spending, use savings, and actively look for higher pay but most aren’t seeing results.”
Monster’s survey also found that:
- 85% of employees have dipped into savings, 42% of whom say they’ve used a significant portion;
- 42% are considering taking on an additional job; and
- 41% worry about job security.
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