Cape May County MUA A 3% raise may sound meaningful on paper, but when the cost of groceries, housing, insurance, utilities, and other everyday necessities increases at a much faster rate, it doesn’t translate into improved financial well-being. According to recent Bureau of Labor Statistics data, real average hourly earnings declined by 0.7% from May 2025 to May 2026, despite an increase in average hourly wages in nominal dollars. In other words, while employees technically earned more, inflation reduced their purchasing power, leaving many able to afford less.