Inflation’s Erosion of Pandemic Pay Differed by Race

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Average worker pay has been hurt by inflation in the pandemic era, but Black and Hispanic workers have seen their earnings hold up the best, on average. 

That’s according to research by the Federal Reserve Bank of New York released Thursday, which analyzed inflation-adjusted earnings for Black, Hispanic, White, and Asian workers. Overall, wages rose significantly during the recovery from the brief pandemic recession amid high demand for workers, but inflation has eroded the value of those bigger paychecks. The effects have been different for different racial groups, as the chart below shows. 

While average pay for Black and Hispanic workers is still significantly below wages paid to their White and Asian counterparts, the gap has narrowed slightly amid the pandemic’s economic upheavals, according to Federal Reserve data.

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  1.  Federal Reserve Bank of New York. “How Have Racial and Ethnic Earnings Gaps Changed after COVID-19?

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