White-Collar Wage Growth Trails Inflation, Leaving Workers in Stasis

According to the latest analysis, the white-collar job market as of August 2025 is facing a troubling trend: wage growth is falling short of inflation. A Bankrate study using data from the Bureau of Labor Statistics has revealed that the gap between wage and salary growth and inflation has widened, particularly in the financial activities and professional and business services sectors.

This stagnation is affecting both newer and experienced job seekers in the white-collar realm. Recent graduates, including those from the tech industry, are facing increased competition but fewer opportunities. Seasoned workers are also struggling to find more advanced roles or secure promotions, leaving everyone in a state of "stasis," as described by Bankrate economic analyst Sarah Foster.

On the flip side, some sectors dominated by in-person service work that were in high demand after the pandemic recession have seen more robust wage gains. Healthcare, social assistance, and leisure and hospitality industries, for instance, have experienced stronger wage growth that has helped workers keep up with rising prices. However, pay in these sectors tends to be lower, and workers may still feel the effects of inflation.

With fewer opportunities in the white-collar job market, the best path forward for workers may be to have an open and confident discussion with their employers about their value and contributions. Switching jobs, which previously offered better pay, may no longer be as lucrative an option, as the gap between job stayers and job switchers has narrowed.