Marketplace Morning Report Inflation outstripped wage growth last month
Jul 16, 2025
Real wages took a hit last month as inflation outpaced earnings, raising concerns about Americans' purchasing power. The Senate weighs in on a controversial bill that could cut funding for foreign aid and public broadcasting, stirring up heated debates. Meanwhile, the U.S. is striving to gain control of the rare earth market, reducing its dependency on China. With Apple investing in a domestic mine, the geopolitical stakes couldn't be higher. Tune in for insights on the intersection of economics, politics, and technology!
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Wages Didn't Keep Up With Inflation
- Inflation rose 0.3% in June, while average paychecks increased only 0.2%.
- This means Americans' real average hourly earnings actually fell last month, reducing their purchasing power.
Slowing Job Growth Limits Wage Hikes
- The job market is steady with unemployment near 4%, but hiring is slowing down.
- Employees hesitate to quit; stagnant job growth makes it harder to push for wage increases.
Tariffs Add Up to Higher Prices
- Tariffs are starting to increase prices of imported goods like appliances and toys.
- As these costs pass to consumers and labor market slows, wage pressure may weaken further.