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WASHINGTON – Average hourly pay rose in October, but inflation used up the increase. Real average hourly and weekly earnings for employees on private nonfarm payrolls were unchanged from September after seasonal adjustment, the Bureau of Labor Statistics reported Tuesday.
In its November 10 real earnings report, BLS said a 0.4% increase in average hourly earnings was offset by a 0.4% increase in the Consumer Price Index for All Urban Consumers. The average workweek was unchanged, leaving inflation-adjusted weekly earnings flat as well.
Nominal average hourly earnings reached $38.00, up from $37.86 in September. Average weekly earnings rose to $1,307.20 from $1,302.38, while average weekly hours held at 34.4. October and September figures are preliminary.
The distinction is between more dollars and more buying power. Average pay in dollars rose, but the overall price index rose at the same rounded monthly rate. On the broad private-payroll measure, workers did not gain purchasing power over the month.
The separate October inflation report showed that price growth slowed from September’s 0.6% increase to 0.4%. Slower inflation still meant rising prices, rather than a fall in the overall cost of living.
Production and nonsupervisory employees had a different result. Their real average hourly earnings increased 0.1%, as nominal hourly earnings rose 0.4% and the Consumer Price Index for Urban Wage Earners and Clerical Workers rose 0.3%.
But their real average weekly earnings declined 0.3%, with the average workweek falling 0.3%. That is why a small improvement in inflation-adjusted hourly pay did not translate into a stronger inflation-adjusted weekly paycheck.
The two groups use different inflation measures: CPI-U for all private nonfarm employees and CPI-W for production and nonsupervisory employees. BLS defines the latter group to include production workers in mining and manufacturing, construction employees and nonsupervisory service-sector employees.
No October year-over-year real earnings comparison is available. BLS said it could not collect the relevant October 2025 CPI data during the lapse in appropriations, leaving it without the price comparison needed to calculate the annual change in purchasing power.
What it means for a paycheck: A raise in dollar terms is not automatically a gain after inflation. These October averages show hourly pay keeping pace with prices across private nonfarm payrolls, while shorter hours reduced weekly buying power for production and nonsupervisory employees. The figures describe averages across jobs, not the change in every person’s take-home pay.
JBizNews Desk | Economy
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