Questions about inflation and pay rate

[averagedad]

I'm trying to understand how the cost of living has steadily gone up over the years, but yet, employee's pay rates don't change.

I don't think I know a single person who has not been hit pretty hard by the steadily increasing healthcare rates, and the cost of living - the cost of food, the cost of gas prices, etc. Not all, but some of these people have the same pay rate as they did years before because they are either "topped out" or some other cause.

How does society move forward and thrive when pay rates don't match the rate of inflation? What Causes employers to back off of giving raises and not keep up with the current rates of a given profession?

Anybody else in a profession where raises have been pretty slim in the past five years or so?

[frugalredhead]

I don't have an answer for you, but I work in healthcare and have gotten a 1.5% raise the last 4 or 5 years. I get my raise in July, and get to enjoy a little bit of extra money until January, when my health insurance goes up, usually the same amount or more than my raise was. So every year, my raise covers the increase in my health insurance, and that's about it. Inflation of everything else just comes out of my pocket. It stinks, but I'm just glad I'm not one of the many people who have been laid off...

[ladonnarosso]

I'm in the same boat as frugalredhead. I work in healthcare and have gotten a miniscule raise every year (1-1.5%) in October, so it's helpful until January, when our insurance goes up again. ugh! It's really annoying.