Real earnings for U.S. private-sector employees fell 0.5% in September as consumer prices increased faster than nominal pay. The Bureau of Labor Statistics published the September data on October 14, 2026.
Average hourly earnings increased 0.1% during the month, while the Consumer Price Index rose 0.6%. The gap reduced purchasing power even though nominal weekly earnings reached $1,300.66.
Real earnings decline as inflation accelerates
The September decline followed a 0.1% decrease in August. Real average hourly pay fell to $11.24 in constant 1982–1984 dollars from $11.30, while real weekly earnings declined to $386.76 from $388.75.
Source: U.S. Bureau of Labor Statistics, September 2026 data released October 14, 2026. Seasonally adjusted.
The wage figures clarify the household impact of the September CPI increase. They also provide context for the month’s 0.8% retail-sales increase, which was reported in nominal dollars.
Real earnings remain below year-earlier levels
Compared with September 2025, nominal hourly earnings rose 3.0%, but consumer prices increased 3.7%. Real hourly earnings therefore fell 0.7%, while a longer average workweek limited the decline in real weekly earnings to 0.1%.
Production and nonsupervisory employees experienced similar pressure. Their real hourly earnings fell 0.6% both monthly and annually, while real weekly earnings decreased 0.5% for the month and 0.3% from a year earlier. The erosion contrasts with the balance-sheet gains reported in the Federal Reserve’s 2025 Survey of Consumer Finances.




