U.S. average hourly earnings barely rise in September as inflation stays above 3%

Average hourly earnings in the United States rose 0.1% in September, bringing the year-over-year increase to 3%, according to Labor Department data. The modest gain comes as consumer prices continued to rise, with inflation running at a 3.4% annual rate as of August.

The wage-inflation gap first emerged this spring, and the latest figures show the gap persisting. The 3% annual earnings growth is the slowest since May 2021, and the monthly increase is the weakest since December 2025.

September’s employment report also showed the economy added only 29,000 jobs, well below expectations, and the unemployment rate edged higher. Revisions to prior months reduced total job gains by 60,000.

"Inflation has eaten up all wage gains for the average worker since April. Many people are having to make hard choices about what to buy and what to skimp on right now," wrote Heather Long, chief economist for Navy Federal Credit Union, on X.

"Notable: Wages only ticked up 0.1% in the month of September. That was the weakest monthly gain since December 2025," she added.

"Notwithstanding this month's disappointment, I'm generally quite positive on labor market developments in 2026. The one big exception is wage growth, which has weakened," said Guy Berger, senior adviser on labor markets at Access/Macro, on X.