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Inflation has been eating up wage gains for months. September was no different.
Yahoo Finance • • business
Key Points:
- September's jobs report reveals that average hourly earnings increased by only 0.1% month over month and 3% year over year, failing to keep pace with inflation, which rose at a 3.4% rate as of August.
- Inflation has outstripped wage growth since spring, effectively eroding any real income gains for the average worker, forcing many to make difficult financial choices.
- The 3% annual wage growth is the slowest since May 2021, and September's monthly wage increase was the weakest since December 2025.
- The economy added just 29,000 jobs in September, below expectations, with unemployment rising slightly and previous job gains revised downward by 60,000.
- Despite weak wage growth and a sluggish job market, economists view the overall labor market as stable, though wage growth remains a significant concern.
