Marketplace · Friday, September 4, 2026
Despite a strong jobs report, average hourly earnings in August saw their slowest pace in over five years, increasing by only 3.1% year-over-year. This wage growth is failing to keep up with rising prices for essentials like gas and groceries, leading to a decrease in real wages.
“Okay, so stellar jobs report with a lackluster footnote, a pretty important one, too. Average hourly earnings were up 3.1 percent year-over-year last month. That's the slowest pace in more than five years.”
“Since spring, after the Iran war started, wages have been losing ground to prices, says Kyle Moore at the Century Foundation.”
“An American worker is working harder. Productivity is up. Wage growth is tepid. Prices are continuing to rise.”