(Nov 21): US inflation-adjusted wages stagnated for second-straight month, indicating a cooling labour market and continued price increases are limiting consumers’ spending power.
Real average hourly earnings for all US employees were unchanged in September, according to a Bureau of Labor Statistics report on Friday that was delayed by the federal government shutdown. From a year earlier, earnings were up just 0.8% — matching the slowest annual pace since mid-2024.
The labour market has softened substantially this year. Hiring has been largely concentrated in just two industries — healthcare and leisure and hospitality — and unemployment has climbed higher. Wage gains have slowed as a result.
Hourly earnings for production and nonsupervisory employees edged lower from the prior month.
Friday’s report combines inflation figures with recent wage data. Economists pay close attention to this metric as a driver of household spending, which lately has become more bifurcated with the wealthiest Americans propelling consumption.
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