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Wage growth for a large swath of Americans is being outpaced by the rate of inflation<\/a>, according to data from Indeed, which reported people with low- and middle-paying jobs are likely feeling the most pressure. <\/p>\n US Federal Reserve Chairman Jerome Powell has said he would like to wait to see the impact of … More President Donald Trump’s tariffs before making changes to interest rates. (Photo by ANDREW CABALLERO-REYNOLDS\/AFP via Getty Images)<\/p>\n AFP via Getty ImagesKey Facts<\/p>\n Purchasing power for 57% of U.S. workers increased last year, according to Indeed, leaving 43% lagging behind the rise in cost of living.<\/p>\n While annual wage growth remains just above the annual rate of inflation, which grew to 2.7% in June, \u201cthe gap between the two is the narrowest it\u2019s been in 12 months\u201d Indeed added.<\/p>\n Wage growth has usually remained faster than the pace of inflation during periods of normal market conditions in the last few years, according to data from the Atlanta Fed’s wage growth tracker. <\/p>\n As \u201cjobs at the low-to-middle end of the pay spectrum\u201d are likely feeling the crunch of reduced purchasing power, wages of higher-paying jobs have typically grown the fastest in the past year, though Indeed notes annual growth among those jobs have receded in recent months.<\/p>\n Get Forbes Breaking News Text Alerts: We\u2019re launching text message alerts so you’ll always know the biggest stories shaping the day\u2019s headlines. Text \u201cAlerts\u201d to (201) 335-0739 or sign up here<\/a>.<\/p>\n Contra<\/p>\n Overall wage growth remains \u201chealthy and above inflation,\u201d Indeed noted, even though many low- and middle-wage jobs have experienced pay increases at or below the pace of inflation.<\/p>\n What Kinds Of Jobs Have The Fastest-Growing Wage Growth Since Last Year?<\/p>\n Jobs in electrical engineering topped Indeed\u2019s list of fastest-growing wages with a \u201cmuch higher-than-average annual advertised pay growth of 6.3%\u201d Wage growth of electrical engineering jobs was followed by legal (5.1%), marketing (5.1%), project management (4.6%), mathematics (4.5%) and IT operations (4.4%).<\/p>\n What Kinds Of Jobs Have The Slowest-Growing Wage Growth Since Last Year?<\/p>\n Physicians and surgeons led the way in slowest growing wage growth with a 0.8% increase since last year, which was followed by driving jobs (1%). Other slow-growing categories include arts and entertainment (1.2%), software development (1.4%), beauty and wellness (1.6%) and logistic support (1.7%).<\/p>\n What To Watch For<\/p>\n The impact of President Donald Trump\u2019s tariff policy on American households. A Yale University report published this month found the president\u2019s policy could cost U.S. households an additional $2,400 this year as tariffs may potentially trigger a 1.8% increase in short-term prices for consumers. The tariffs could cause other economic impacts<\/a>, such as a rise in the unemployment rate and a drop in the U.S. gross domestic product.<\/p>\n Key Background<\/p>\n Low-paying jobs experienced their largest wage gains as the economy charged back from the throes of the COVID-19 pandemic\u2019s early days, with annual growth spiking as high as 7.5% in October 2022, according to the Atlanta Fed’s wage growth tracker. That rate of wage gains dropped to 3.7% last month. June\u2019s 2.7% inflation rate was the highest level since February. Trump has pushed Federal Reserve Chair Jerome Powell to cut interest rates as inflation has approached the Fed\u2019s long-term target of 2%, but the Associated Press<\/a> notes the current inflation figures will \u201cmake it more likely that the central bank will leave rates where they are,\u201d citing Powell\u2019s desire to understand the impact of Trump\u2019s tariffs before making any moves.<\/p>\n Further Reading<\/p>\n Trump\u2019s New Tariffs Could Cost Households $2,400 This Year, Analysis Finds<\/a> (Forbes)<\/p>\n