The Cost Of Living Is Becoming A Retention Risk

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Why Workers’ Financial Pressure Should Be Part Of The Compensation And Workforce Strategy Conversation

Workers are still feeling squeezed by the cost of living, and many do not feel their pay is keeping up.

According to Monster’s 2026 Cost of Living Report, 93% of workers say their wages are not keeping pace with rising costs. This marks the third consecutive year that more than 9 in 10 workers have reported the same concern, following 95% in both 2024 and 2025.

For employers, this is not only a compensation issue. It is a retention, engagement, recruiting, and workforce planning issue.

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