The most prestigious law school admissions discussion board in the world.
|
 |
 
|
The Trump Effect: wage growth blows by inflation for working class
| Civil Attorney | 11/21/25 |
Poast new message in this thread
Date: November 21st, 2025 10:49 AM Author: Civil Attorney Inflation Canceled Out Pay Gains in September
By Harriet Torry
Reporter
Inflation-adjusted average hourly earnings stagnated in September for the second month in a row—a sign rising prices are continuing to eat into Americans’ take-home pay. The stalling in wage growth comes as the labor market has cooled over the past year. Paychecks make up the lion’s share of households’ spending power, and when inflation accelerates faster than wages, living standards decline for many. Highlights from Friday's report from the Labor Department: Average hourly earnings for private-sector workers, adjusted for inflation, rose 0.8% from a year earlier.
In September 2024, annual gains had been running at 1.4%.
The picture is even bleaker for rank-and-file workers.
Hourly pay for production and nonsupervisory employees, adjusted for inflation, slipped 0.1% from a month earlier, and rose just 0.8% from a year earlier. Costs for goods and services are 25% above where they were in 2020, and many middle-class workers report feeling strained by years of rising prices. |