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Hourly earnings for leisure and hospitality workers were up 12.3 % in November, considerably more quickly than inflation. Workers in other low-wage service sectors are also seeing powerful gains. Only 17 percent of workers say they have received raises that kept up with inflation more than the past year. Most of the rest say either that they have received raises that lagged price increases or that they have received no raise at all 8 % of respondents said they had taken a spend reduce. Faster pay increases and more rapidly inflation are each at least partly a outcome of the exceptional strength of the economic recovery. After collapsing in the initial weeks of the pandemic, customer spending swiftly rebounded and sooner or later reached record levels, helped by hundreds of billions of dollars in federal aid.
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