Marketplace All-in-One Inflation outstripped wage growth last month
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Jul 16, 2025 Inflation is outpacing wage growth, leaving real earnings for workers on the decline. The podcast dives into the potential long-term effects on the labor market amidst stable unemployment. It also discusses President Trump’s push to cut federal funding for foreign aid and public broadcasting, highlighting the urgency of legislative timelines. Additionally, the focus shifts to the U.S. strategy in rare earth material production, emphasizing its importance for national defense and economic sovereignty as a tech giant invests in domestic mining.
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Inflation Outstrips Wages
- Inflation outpaced wage growth in June, reducing real average hourly earnings for the month.
- Weakening labor market and rising import prices may continue to erode Americans' wages.
Stagnant U.S. Labor Market
- The U.S. labor market is stable but stagnant with unemployment around 4%.
- Employers hold onto current workers, and employees hesitate to quit, limiting wage increases.
Tariff Effects Emerging
- Tariffs are beginning to raise prices on imported goods like appliances and toys.
- As newer merchandise arrives, costs will likely rise further, pressuring consumers and wages.