Feds Get Raises Despite Economic Uncertainty

The federal government recently announced that all federal employees will receive a pay raise in 2021. This news comes as a surprise to many, especially considering the current economic uncertainty caused by the COVID-19 pandemic. The raises are part of a 2.6% across-the-board increase for civilian employees, and an average 3% increase for military personnel. The raises are set to take effect in January 2021, with the intention of providing relief to those affected by the pandemic’s economic downturn. While this news may seem like good news on its surface, it is important to consider the context in which these raises are taking place. Many Americans have been laid off or furloughed due to business closures and reduced demand for goods and services during the pandemic. With unemployment at record highs, many are struggling to make ends meet and cannot afford basic necessities such as food and rent payments. In addition, businesses across industries have had to reduce wages or cut hours in order to stay afloat during this difficult time. While it is admirable that federal employees will be receiving a pay raise, it does not seem fair when so many other people are struggling financially due to no fault of their own. Furthermore, there is no guarantee that these raises will actually help alleviate financial hardship among federal workers either; research has shown that cost of living increases often do not keep up with inflation rates over time, meaning that even with these pay bumps some workers may still struggle financially down the line if prices continue rising faster than wages do. It remains unclear how much of an impact these raises will have on individuals’ lives or on the economy as a whole; only time will tell if they prove beneficial or detrimental in light of current circumstances. In any case, it is important for everyone—federal employees included—to remain mindful of those who are less fortunate than them during this difficult period in history and remember that we all must work together if we want our country to come out stronger from this crisis than before it began.