Despite an Increase in Earnings, Women Are Not Benefiting as Much as Men

Recent data from the US Census Bureau indicates that earnings have been steadily increasing or staying the same in recent years. The real median household income has seen growth for four consecutive years up to 2018. However, a new report from Magnify Money highlights a concerning trend – women are not reaping the same rewards as men when it comes to pay raises and promotions.

In the past year, 59% of Americans received a pay raise, with approximately half of them also receiving a promotion. Breaking down the data by gender reveals a stark contrast – 64% of men reported getting a raise, while only 52% of women did. What’s more, 54% of men were promoted along with their raise, compared to just 37% of women.

An examination of the underlying causes of this inequality indicates that women faced fewer opportunities for salary increases and career progressions over the last year. This disparity has had long-term consequences, resulting in women having significantly less retirement savings than men.

Despite the disheartening news, there is a silver lining – Millennials are making strides in their careers, with this group reporting a higher number of pay raises compared to older generations.