Wage growth for the lowest-paid workers in the United States has slowed sharply, reaching 3.7% year-on-year in June 2025, the lowest rate in seven years and a decline from a peak of 7.5% in 2022. This slowdown disproportionately affects workers earning less than $806 per week, while the top 25% of earners continue to see wage growth of 4.7%. Nearly 40% of American workers now earn less than the median wage, exacerbating income inequality. This trend marks a reversal from the period since 2017, when wage growth for the bottom quartile generally outpaced that of higher earners. The overall national wage growth stands at 4.3%. The cooling job market and related labor dynamics, including a decline in the foreign-born labor force and diminishing premiums for job switchers, contribute to this wage growth deceleration. These developments have intensified scrutiny of President Donald Trump's record on economic inequality. Meanwhile, Japan reported a sixth consecutive month of real wage declines in June 2025.