Labor Day was created over a century ago to commemorate the achievements of the American workforce, and in 2023 the nation's 167 million workers have something to celebrate: wage gains that are putting them ahead of inflation.

Wage growth has been particularly strong for low-paid workers since March 2020, when the pandemic shut down the U.S. economy, said Elise Gould, senior economist at the Economic Policy Institute. Because of government stimulus such as expanded unemployment benefits, low-paid workers had a stronger safety net as they looked for better-paying jobs. As a result, many employers have boosted pay during the past three years. READ MORE