JOURNAL ARTICLE

The K-shaped economy has come for your wages, as lower-income Americans sees their gains plummet to the weakest rate in a decade.

  • Published In: Fortune.com, 2025. P. N.PAG 1 of 3

  • Database: Business Source Ultimate 2 of 3

  • Authored By: Rogelberg, Sasha 3 of 3

Abstract

The article discusses the widening wage disparity in the U.S., highlighting a shift in wage growth trends that favors wealthier households over low-income workers. According to data from the Federal Reserve Bank of Atlanta, nominal wage growth for the lowest-income quartile has decreased from 7.5% in 2022 to approximately 3.5% currently, while higher-income groups have experienced more stable wage growth. This phenomenon is indicative of a "K-shaped economy," where economic recovery benefits the wealthy disproportionately, leaving lower-income individuals struggling. Factors contributing to this trend include a stagnant labor market and the impact of tariffs on wage growth in specific sectors. [Extracted from the article]

Additional Information

  • Source:Fortune.com. 2025/11, pN.PAG
  • Document Type:Article
  • Subject Area:History
  • Publication Date:2025
  • Accession Number:189240390
  • Copyright Statement:Copyright of Fortune.com is the property of Fortune Media (USA) Corporation and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Looking to go deeper into this topic? Look for more articles on EBSCOhost.