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This fact brief was originally published as an experiment to test the concepts behind fact briefs.

Readers should be aware that while there is still a lot of useful information in fact briefs like this one, not all of them reflect Gigafact's current methods and standards for fact briefs. If you come across any that you feel are out of date, don't hesitate to contact us at support@gigafact.org.

FACT BRIEF

Does data show lasting impact from pandemic-related salary cuts?

Wednesday, March 17, 2021

By Stevie Rosignol-Cortez

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Multiple reports and surveys during 2020 pointed to looming or actual cuts in salaries and wages, but data suggests any impact on compensation for workers who kept their jobs may not have been lasting.

Korn Ferry, a recruiting consultant, in April reported that 34% of surveyed North American employers were considering or implementing salary cuts. An August Pew Research survey of over 13,000 adults found that 32% of respondents said that the pandemic had resulted in a pay cut for at least one member of their household.

Official data suggests that although wages and salaries took a steep hit in the second quarter of 2020, they quickly recovered by yearend, suggesting that pandemic-related reductions were not permanent. Inflation-adjusted average weekly earnings were up 4.9% in December 2020 from a year earlier, according to the Bureau of Labor Statistics.

This fact brief is responsive to conversations such as this one.

Sources

Korn Ferry: Impact of COVID-19 on rewards and benefits

Pew Research: Job or wage loss due to COVID-19

Federal Reserve Bank of St. Louis: Compensation of employees, paid—wages and salaries

US Bureau of Labor Statistics: Real earnings, December 2020

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Gigafact

Between 2020 and 2022, under close editorial supervision, Gigafact contracted a group of freelance writers and editors to test the concepts for fact briefs and provide inputs to our software development process. We call this effort Gigafact Foundry. Over the course of these two years, Gigafact Foundry writers published over 1500 fact briefs in response to claims they found online. Their important work forms the basis of Gigafact formats and editorial guidelines, and is available to the public on Gigafact.org. Readers should be aware that while there is still a lot of relevant information to be found, not all fact briefs produced by Gigafact Foundry reflect Gigafact's current methods and standards for fact briefs. If you come across any that you feel are out of date and need to be looked at with fresh eyes, don't hesitate to contact us at support@gigafact.org.

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About fact briefs published on Gigafact

Fact briefs are short, credibly sourced summaries that offer “yes/no” answers in response to claims found online. They rely on publicly available, often primary source data and documents. Fact briefs are created by contributors to Gigafact —a nonprofit project looking to expand participation in fact-checking and protect the democratic process. See all fact briefs here.