inequality

The pay gap between executives and their employees has widened from 2024 to 2025, with chief executives making 312 times what their median worker earned, according to the AFL-CIO, the largest coalition of labour unions in the United States.

That’s up from the previous rate of 285 times the median worker salary for executives working in the companies listed on the S&P 500 index.

The figures were released on Thursday as part of the AFL-CIO’s annual Paywatch report, which tracks the growing gulf in wages.

The labour federation warned that the divide in pay risks having broader effects for the global marketplace. If CEOs are focused on increasing their paycheques, the AFL-CIO warned that they may be less concerned about the stability of their companies — or of the economy overall.

“Excessive CEO compensation contributes to growing economic inequality,” the AFL-CIO wrote. “It creates the risk that CEOs will make short-term decisions to maximize their pay, even if it hurts the company’s long-term health.”

In determining the executive-to-worker pay ratio, the AFL-CIO explained it had to exclude one outlier: the world’s richest man, Elon Musk.

In 2025, Musk made $158bn as CEO of the electric vehicle company Tesla — 2.5 million times more than the company’s average employee. His salary even dwarfed the company’s revenue for the year, which was $94bn.

That same year, the carmaker reported a 3 percent decline in revenue. Sales dropped by roughly 9 percent, as some consumers boycotted the company over Musk’s participation in President Donald Trump’s second administration.

Tesla also faced 11 vehicle recalls last year, accounting for 745,000 of its cars.

For the first half of 2025, Musk served as the head of the Department of Government Efficiency (DOGE), an office Trump established to oversee cuts to the federal workforce and spending.

He also oversees multiple business interests beyond Tesla, including the social media platform X and the rocket company SpaceX.

In June, the initial public offering (IPO) for SpaceX’s stock briefly ballooned Musk’s net worth, and he was listed for a short time as the world’s first trillionaire.

Including Musk, on average, the pay for a chief executive in an S&P 500 company jumped 1,700 percent last year to reach $3.1bn.

Excluding Musk, the increase was slightly more modest. Whereas in 2024 the average CEO pay was roughly $19m, in 2025 the figure increased by 21 percent to $22.8m.

That sum is nearly double the average compensation package for chief executives a decade ago.

Uneven distribution across industries

Different industries, however, saw varying ratios in executive-to-worker income.

The biggest pay disparity was in the manufacturing sector, with the average CEO making $696m and the average worker in the industry making slightly more than $93,000.

That amounted to a more-than-11,000 percent difference in their salaries. Tesla marks the biggest disparity in the sector, helping to drive the pay ratio higher.

The industry with the second-highest pay ratio was the arts, entertainment and recreation sector, where executives make an average of $24.6m, compared to an average of around $25,000 for median workers. The difference was a ratio of 1,057 to one.

One of the most stark examples of a pay divide was the coffee chain Starbucks, where the average worker made $17,279 — only $1,629 higher than the federal poverty line in 2025.

With CEO Brian Niccol earning north of $30m last year, experts estimate the pay ratio in the company is 1,794 to one.

The AFL-CIO’s report also showed that Amazon, Dollar Tree, FedEx, McDonald’s and Walmart workers are the largest recipients of social assistance programmes.

Amazon CEO Andy Jassy made 51 times more than the company’s average employee, while McDonald’s CEO Chris Kempczinski made 1,082 times more than the average worker at the Chicago, Illinois-based fast-food giant.

Trump posts surge in earnings

Thursday’s report also examined Trump’s income during the first year of his second term in office.

Trump’s campaigns for public office have largely hinged on his record as a businessman, and he has pitched himself to voters as uniquely qualified to address the country’s economic needs.

But critics have accused him of profiting from the presidency, whether through trademarks or policies favourable to his business interests, including cryptocurrency.

The AFL-CIO report found that Trump’s income surged 254 percent last year, over what he made in 2024, before his return to the White House.

The $2.2bn worth of income he earned in 2025 stemmed largely from World Liberty Financial, the Trump family’s cryptocurrency venture, and the sale of meme coins.

Those earnings are roughly 43,154 times what the median US worker made last year, according to the AFL-CIO. Approximately 37 percent of US adults cannot cover a $400 emergency expense.

This comes as US consumer sentiment slipped 8 percent, with consumers growing more wary of business conditions and the strength of their personal finances, according to a report from the University of Michigan released on Friday.

The labour market is also experiencing a downturn, with the US economy shedding 23,000 jobs in July, according to a monthly report from the US Department of Labor’s Bureau of Labor Statistics (BLS).

The Conference Board, a nonprofit think tank focused on the economy, also found last month that confidence in the state of the US economy is trending downward for the third consecutive month.

Paris and Chamonix, France – Ibrahim Doukanthi prepares to plunge into the Canal Saint-Denis. It is almost noon, and the temperature in the Paris region is nearing 30 degrees Celsius (86F).

He grew up just north of Saint-Denis, one of France’s poorest municipalities, and now lives in La Plaine, hundreds of metres from the Stade de France, the country’s national stadium.

“The water here is completely normal,” he said. “It’s just that it’s green, so you don’t know what’s in it – that’s what makes it a bit scary.”

He has been jumping into the canal – technically not open to swimmers – to cool off during the recent heatwaves.

Like many residents of Paris’s sprawling, historically disinvested suburbs, Doukanthi had to be creative to beat the heat while living in an apartment building without air conditioning.

“What I do is take the spray bottles – I call them ‘pshit-pshit’ – fill them with water, spray myself down, then sit in front of the fan,” he said. “It cools you off like crazy.”

Sitting in the shade at a flea market in Saint-Denis, Natifa Segli, a municipal employee, criticised the government’s response to the heatwave.

“I don’t feel like we learned the lesson from the 2003 heatwave. Here we are in 2026, and this heatwave was horrible,” she said. “Even at work, we weren’t sheltered. The temperatures in the offices were very, very hot.”

For Segli, the only consistent solution is to avoid the sun. “We’re going to stay in the shade,” she said of an upcoming heatwave, expected later this week.

‘We really have nothing to cool off with’

In areas like Saint-Denis, access to cooling infrastructure is unevenly spread, Louiza Ammari, a childcare worker who lives in social housing, told Al Jazeera.

In her building, police banned residents from setting up an inflatable pool for children. As renters, her family is not allowed to install air conditioning. Though one municipal pool opened free swimming hours, she could not go because it does not allow burkinis.

“We really have nothing to cool off with,” she said.

In France, there were 2,025 additional deaths during the last heatwave, the week of June 22 – a week-over-week increase of 30 percent nationwide and 62 percent in the Paris region, according to the national public health agency.

Extreme heat highlights existing inequalities, according to Bruno Villalba, a political science professor at AgroParisTech Paris-Saclay, specialising in political ecology and environmental policy.

“The heatwave is merely a symptom of social vulnerability, particularly in terms of housing,” Villalba told Al Jazeera.

Wealthier people can insulate their homes, afford a portable air-conditioning unit, eat fresh produce, or even leave the city for vacation when it gets too hot, options that are unavailable to many others.

“It’s up to the government to step in,” Villalba said.

“They tell us, ‘Stay hydrated, don’t stay in the sun, drink water,’” he said. “The French government did not sufficiently anticipate the acceleration of climate change.”

‘We are not all equally exposed’

There is a pervasive misconception of “universality” when it comes to climate deregulation, noted Mael Ginsburger, a lecturer at Universite Paris Cite focused on inequalities linked to the ecological transition.

Although experienced by everyone, more vulnerable populations have limited resources to mitigate heatwave conditions.

“We are not all equally exposed, just as we are not all equally responsible. There are significant inequalities in carbon emissions,” Ginsburger said. “Not everyone is equally capable of adapting, and there are certain groups that face multiple vulnerabilities linked to poor health, for example.”

Among wealthy households in France, 70 percent consider their homes properly insulated to combat heat, compared with 46 percent of lower-income households, according to Ginsburger’s research. More people report now suffering from heat in the summer – 66 percent – than cold in the winter, 46 percent.

“Overcrowded housing is much more likely to be in poor condition and have extremely poor insulation,” Ginsburger said. “These are populations facing a combination of overcrowding in dilapidated housing located in areas like Marseille and Lyon that are particularly vulnerable to heat.

“We’re sticking with this same approach of small steps rather than a structural approach that would actually require a more far-reaching overhaul of [building] infrastructure.”

For the homeless, the ramifications of heatwaves can be even worse.

“People who are outside don’t have a moment’s respite. They are suffocating in a concrete jungle where there is no simple, effective way to escape the intense heat. On asphalt, the perceived temperature can often rise to 45-50 degrees,” Paul Alauzy, at NGO Medecins du Monde, or Doctors of the World, told Al Jazeera.

He is a member of Le Revers, an activist group that formed during the 2024 Paris Olympics to bring awareness to the conditions faced by unhoused people in the Paris region.

“We’re asking for long-term policies designed to protect as many people as possible and reduce the number of people living on the streets, precisely to shield them from the harsh weather,” Alauzy said. “Once again, the authorities are stubbornly resorting to reactive, weather-dependent management.”

During heatwaves and cold snaps, French officials usually add a few emergency shelters and install temporary water stations.

“This is obviously not nearly enough,” Alauzy said.

Not all parks and natural spaces, essential for cooling down, are accessible to all.

“Trees, which are natural tools for regulating temperatures, have been effectively pushed out of our cities,” Villalba said, especially in deprived areas.

In places like Saint-Denis, schools and other public infrastructure are insufficiently equipped, said Ammari, the childcare worker.

‘Definitely an advantage to be at an altitude’

Even in the mountains, temperatures rose above 30C during the last heatwave, about 10C (18F) above normal end-of-June temperatures.

In Chamonix, the Bossons Glacier above town visibly shrank and conditions along popular routes up Mont Blanc and neighbouring peaks are becoming dangerous due to rockfall risks.

But nights are not stifling, and locals and visitors in the Alps sleep comfortably.

There are forested trails and a river fed by glacial melt that cools the surrounding area.

“In Chamonix, like in many mountain towns, it’s definitely an advantage to be at an altitude of 1,000 metres [3,280 feet] and to have the forest a few minutes from home,” Jean-Michel Bouteille, who recently retired from his role as director of municipal services in Chamonix, told Al Jazeera. “We’re a town of 9,000 people, but we still have nearby green spaces that are free and easily accessible.”

Although the mountain weather is not oppressive, climate change is felt in Chamonix.

“We have temperatures much higher than in previous years, which is leading to significant consequences. The Bossons Glacier is a disaster,” said Bouteille, who has lived in the valley for 26 years.