LAS VEGAS (KLAS) — Las Vegas saw a 4.8% increase in wages before adjusting for inflation, according to a study from Smart Dollar.
After adjusting for inflation, however, wages in the city saw a decline of 1.8%.
The study calculated percentage changes in wages from Q4 of 2020 to Q4 of 2021 using data from the U.S. Bureau of Labor Statistics’ Quarterly Census of Employment and Wages.
Before inflation adjustments, Las Vegas’ average weekly wages in Q4 2021 rose to $1,197 from $1,142 in Q4 2020. The city ranked 33rd in its percentage change in wages out of large U.S. metropolitan areas before adjustments.
The study emerged after the government announced that consumer prices in June surged 9.1% from a year earlier, the largest 12-month increase in four decades. Prices for essentials like food and housing have skyrocketed, stretching out budgets despite pay increases for some workers.
The study noted that across the board, while nominal wages are growing faster than at any point in at least two decades, inflation-adjusted wages are declining.
In non-adjusted dollars, wages rose sharply during the COVID-19 pandemic but fell during the study’s period of focus after inflation adjustments.
According to the study, some industries, notably hospitality and leisure, have done a better job at keeping pace with inflation by adjusting wages. In Nevada, the minimum wage rose by another 75 cents on July 1 due to a bill that increases the minimum wage in 75-cent increments every year until July 2024.
The increase went into effect for all minimum wage workers, including those in hospitality, leisure, and service industries.
Despite this, fields including education, health services, manufacturing, and construction saw declines in inflation-adjusted wages.