Wealth Inequality Resumes Growth After Brief Pandemic Slowdown

Share of wealth and income held by richest Americans has resumed climbing after brief pandemic interruption. Top 1% held 26.5% of household net worth in mid-2022, up from 2019.

Bottom 40% of households by income saw their share of US wealth shrink to 6.7% from 7% pre-pandemic, despite 27% increase in their collective net worth.

Top 5% of earners saw their share of national income grow from 23% pre-pandemic to 23.5% through 2022.

Wage growth for lower-income workers slowed despite labor shortages, suggesting they had less leverage than thought.

Trend of increasing income concentration dating to 1980s has persisted, raising concerns about effects of tighter Fed policy on less wealthy households.