American households finally got a raise in 2023
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At long last, middle-income American households saw rising inflation-adjusted incomes in 2023, according to new Census data out Tuesday morning. It is the first gain in four years.
By the numbers: The median household — the family in the middle of the income distribution — earned $80,610 in 2023, the Census said, up 4% from 2022 after adjusting for inflation. After-tax median income also rose, by 3.7%.
- Inflation-adjusted wage gains were highest among low earners in percentage terms. The bottom 10% of earners saw a 6.7% rise in real income in 2023, compared to 4.6% among the top 10%.
- That means that income inequality fell in 2023, as measured by such statistical indicators as the Gini index (down 0.7 points) and the ratio of 90th percentile income to 10th percentile income (down 2 points).
Flashback: In 2020, the pandemic caused millions to lose their jobs and incomes. In 2021 and 2022, inflation outstripped the pay gains Americans experienced. But the new data shows that buying power was on the rise last year for families across the income spectrum.
Yes, but: Median household income was still slightly below 2019's record levels in real terms, though by an amount within the statistical margin of error. Median incomes in 2019 were $81,210 in 2023 dollars.
