What the US wage growth measures
The line shows how much average hourly earnings of private-sector employees rose over twelve months, using pay data from the BLS payroll survey. It includes regular pay and overtime but not bonuses or benefits. The series begins in 2006, so the growth rate starts in 2007.
How to read this chart
Compare this line with the inflation rate: when wage growth is above inflation, workers’ purchasing power is rising; when it is below, real pay is falling, as it did through most of 2021–2022. Treat the spike in spring 2020 with care – average pay jumped because millions of lower-paid workers lost their jobs, not because anyone got a raise.
The latest reading in context
- At 3.0%, the latest reading is below its 5-year average of 4.3% and below its 10-year average of 3.9%.
- Of all 235 monthly readings since March 2007, 51% were lower than today’s and 49% were higher.
- Direction: down 0.1 points over the past month; down 0.4 points over the past six months; down 0.8 points over the past year.
- The highest value on record is 8.1% (April 2020, 6 years ago); the lowest is 0.6% (April 2021, 5 years ago).
- The full history spans 2 US recessions, shaded grey on the chart.
Why it matters
Wages are the biggest source of household income and the largest cost for most service businesses. Fast wage growth supports spending but can keep service inflation high; slow wage growth holds inflation down but squeezes living standards. The Fed tends to see wage growth of about 3–3.5% as consistent with 2% inflation when productivity grows normally.
What moves the US wage growth
- Labor-market tightness: low unemployment and many job openings
- Inflation, as workers seek to keep up with prices
- Productivity growth
- Composition: who is employed in a given month
Key moments in its history
- 2009–2010Slowed to about 2% after the financial crisis.
- Apr 2020Jumped to about 8% as low-wage jobs disappeared.
- 2022Peaked near 6% in a very tight labor market.
US Wage Growth data tables
Average by decade
| Decade | Average | High | Low |
|---|---|---|---|
| 2020s (so far) | 4.4% | 8.1% | 0.6% |
| 2010s | 2.4% | 3.6% | 1.6% |
| 2000s | 3.1% | 3.7% | 1.9% |
Last 12 months
| Period | Value | Change |
|---|---|---|
| Sep 2026 | 3.0% | −0.1 pts |
| Aug 2026 | 3.1% | −0.1 pts |
| Jul 2026 | 3.2% | −0.2 pts |
| Jun 2026 | 3.4% | 0.0 pts |
| May 2026 | 3.3% | −0.2 pts |
| Apr 2026 | 3.6% | +0.1 pts |
| Mar 2026 | 3.4% | −0.3 pts |
| Feb 2026 | 3.7% | 0.0 pts |
| Jan 2026 | 3.7% | −0.1 pts |
| Dec 2025 | 3.7% | −0.2 pts |
| Nov 2025 | 3.9% | 0.0 pts |
| Oct 2025 | 3.9% | +0.1 pts |
Monthly values. Decade figures are averages of the monthly values in each decade. The complete history is available as a CSV file.
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US Wage Growth: questions and answers
What is the difference between nominal and real wage growth?
Nominal wage growth is the raw increase in pay. Real wage growth subtracts inflation: if wages rise 4% and prices rise 3%, real wages grew about 1%.
Why did wages jump in 2020?
Because of a composition effect. Most jobs lost in the lockdowns were low-paid, so the average of those still working rose sharply even though individual pay did not.
Does this include benefits?
No. Average hourly earnings cover wages and salaries only. The Employment Cost Index, a separate quarterly BLS series, includes benefits.
Where does the data on this chart come from?
From the U.S. Bureau of Labor Statistics. ChartWidgets downloads the series (CES0500000003) from FRED, the Federal Reserve Bank of St. Louis database, and checks for new releases every day. The last update was on November 1, 2026.