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.