IDAHO, WASHINGTON — A recent analysis revealed that Idaho and Washington are among the few states where workers experienced real gains in purchasing power between 2020 and 2024.
According to the Bureau of Labor Statistics, the average American worker’s pay rose from about $64,000 to $75,600, an 18% nominal increase.
However, after adjusting for inflation and cost of living, most Americans actually lost real spending power during that period. The analysis found that the typical U.S. worker is earning approximately 2.6% less in real terms than in 2020.
Idaho, however, saw a 3.1% increase in real purchasing power, leading the nation alongside Florida. Washington ranked third with a 2.3% increase. Only nine states saw real gains in buying power after accounting for inflation and local costs, according to the report.
In contrast, New Jersey and Rhode Island suffered the sharpest real declines, with losses ranging from 5% to 7%.
The report by MyPerfectResume highlighted that rising costs for necessities like housing, groceries and energy absorbed much of the wage increases.
