Real Wages Decline for US Workers Amidst Falling Job Vacancies

A significant portion of the U.S. workforce experienced a decline in real wages between 2021 and 2024, with a new paper indicating that 37% of workers saw their purchasing power diminish. This trend coincides with a concerning drop in job vacancies, which have reached their lowest point in five years, signaling potential headwinds for the labor market.

These economic pressures are not unique to the United States. In India, a boom in college education has left many graduates burdened with debt and struggling to find employment, as the availability of well-paying jobs has not kept pace with the influx of graduates. Similarly, the rise of "Buy Now, Pay Later" services, now being pitched for essential needs like electricity and rent, suggests a growing level of financial strain among consumers who may be resorting to these options out of necessity rather than convenience.