Workers continue to feel squeezed by rising living costs, with new research showing little improvement for a third consecutive year.
According to Monster’s 2026 Cost of Living Report, 93% of workers say their wages are not keeping pace with the cost of living, a figure that has remained virtually unchanged since 2024. At the same time, fewer employees say they’re receiving inflation-related raises, prompting many to dip into savings or search for higher-paying jobs.
Raises Aren’t Closing the Gap
Employer support has continued to decline. Just 7% of workers reported receiving an inflation-related pay increase in 2026, down from 9% in 2025 and 11% in 2024.
Meanwhile, 71% said their most recent raise was less than 3%, reinforcing the gap between wage growth and rising household expenses.
Workers Are Tapping Savings And Hunting For Higher Pay
Financial pressure is forcing workers to make difficult choices. The report found 85% have used savings to cover everyday expenses, while many have also cut discretionary spending, relied more on credit, or reduced retirement contributions.
The search for better pay is also intensifying. Seventy-four percent of workers are looking for higher-paying jobs, up from 62% in 2024 and 56% in 2025.
Despite that growing urgency, only 3% said they had successfully secured and accepted a higher-paying position.
A Tougher Job Market Adds Pressure
Many workers say finding a better-paying role has become more difficult. Fifty-eight percent believe job searches are harder as companies continue cutting costs, while 41% are concerned about job security. Another 42% are considering taking on a second job to supplement their income.
The findings suggest workers are facing a difficult combination of persistent inflation, modest pay increases, and a labor market that many perceive as becoming more challenging, leaving few easy paths to improve their financial situation.
