New Yorkers Are Making More Money But Becoming Much Poorer

It’s called the “illusion of wage growth,” and it’s robbing Hudson Valley families of their savings.

Here’s a stat that’s going to make a lot of Hudson Valley workers nod in frustration. Many New Yorkers are making more money than they were just a few years ago, but in reality, many are actually earning less.

New York Paychecks Are Falling Behind Inflation

A new wage growth analysis found New York ranks #46 in the nation for real wage growth, putting it among the worst-performing states when it comes to how far paychecks actually go after inflation and rising living costs are factored in.

A spokesperson from MyPerfectResume reached out to Hudson Valley Post about the report that used payroll data from the Bureau of Labor Statistics and cost-of-living adjustments from the Bureau of Economic Analysis.

The study found that wages did rise, just not fast enough to keep up with how expensive life in New York has become.

What The Study Found

According to the study, average wages jumped from $83,122 in 2020 to $95,424 in 2024.

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That's a nearly 15 percent increase. On paper.

After adjusting for inflation and the cost of living, New Yorkers actually lost over 5% in real purchasing power.

This means your paycheck in New York got bigger, but it buys less.

Economists call this the “illusion of wage growth,” where salaries increase, but real financial stability quietly declines.

Nationally, wages rose about 18 percent during that same period, yet the average U.S. worker still lost 2.6 percent in buying power.

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