US average hourly earnings reached $37.81 in September 2026, increasing by 5 cents, or 0.1%, from the previous month, according to the latest Employment Situation report released by the US Bureau of Labor Statistics (BLS) on October 2, 2026. Over the past 12 months, average hourly earnings increased by 3.0%.
The latest figures show that private sector wages continued to rise, although monthly growth was modest. However, higher consumer prices reduced the purchasing power of those earnings. The BLS reported that inflation-adjusted average hourly earnings fell by 0.5% in September.
These developments offer useful insights into US wage growth, employee compensation, labor market conditions, and the pressures employers face when planning payroll budgets.
Latest US Average Hourly Earnings Report
The latest BLS data shows average hourly earnings of $37.81 for all employees on private nonfarm payrolls in September 2026, compared with $37.76 in August. The monthly increase of 0.1% followed a larger rise of approximately 0.3% in August.
Compared with September 2025, when average hourly earnings stood at $36.70, the latest figure represents an increase of $1.11 per hour, equivalent to 3.0% annual wage growth.
Average hourly earnings for production and nonsupervisory employees increased by 7 cents, or 0.2%, reaching $32.60 in September, up from $32.53 in August. This measure provides an additional view of wages among workers outside most supervisory positions.
The average workweek for all private sector employees remained unchanged at 34.4 hours. As a result, average weekly earnings increased only slightly, from $1,298.94 in August to $1,300.66 in September.
The broader employment report showed that nonfarm payroll employment increased by 29,000 jobs, while the unemployment rate remained little changed at 4.2%.
The BLS also revised combined July and August payroll employment gains downward by 60,000 jobs. These were employment revisions, not a reported 60,000-job adjustment to the earnings measure.
September and August hourly earnings figures are currently classified as preliminary and may change in subsequent releases.
Key Takeaways From the Latest Average Hourly Earnings Report
Monthly wage growth was modest
Average hourly earnings increased by only 0.1% in September, following approximately 0.3% growth in August. While wages continued rising in dollar terms, the smaller monthly increase indicates a slower pace of earnings growth in the latest reporting period.
One month of slower growth is not enough to establish a lasting trend. Future reports will help determine whether the September result reflects a sustained change or normal monthly variation.
Annual earnings growth remained positive
The 3.0% annual increase shows that average hourly earnings were higher than a year earlier. This matters for employers reviewing compensation budgets and employees assessing how their pay has changed over time.
However, nominal wage growth does not account for inflation. An increase in the dollar value of earnings does not necessarily mean workers can afford more goods and services.
Inflation reduced purchasing power
The BLS reported that real average hourly earnings declined by 0.5% from August to September and by 0.7% over the 12 months ending September 2026.
These inflation-adjusted results show that consumer prices rose faster than average hourly earnings. For workers, that can mean greater pressure on household budgets even when their earnings increase.
Earnings continued to differ significantly across industries
The latest data shows substantial differences between industries. Average hourly earnings were $41.69 in construction, $36.92 in manufacturing, and $23.90 in leisure and hospitality.
These differences reflect the importance of industry-specific compensation conditions. A single national average cannot fully represent wage levels in every sector, occupation, or local labor market.
How Do the Latest Average Hourly Earnings Compare With Previous Months?
Recent data shows that US average hourly earnings continued increasing through September 2026, but the pace of monthly growth varied.
In July, average hourly earnings stood at $37.64. The figure increased to $37.76 in August, representing a 12-cent gain, before reaching $37.81 in September with a smaller 5-cent increase.
The September figure was also above the $37.59 recorded in June and the $37.49 reported in May.
Taken together, these results show continued growth in the average dollar amount earned per hour during the latest several months. However, the September increase was smaller than the preceding month's gain.
The distinction matters because a rising wage level and a slowing wage growth rate are not the same thing. Average earnings can continue climbing even when the monthly percentage increase becomes smaller.
Employers should also remember that these figures represent an economy-wide average. Individual employees may receive raises, experience unchanged pay, or see earnings fluctuate because of overtime, bonuses included in regular payroll, or changes in working arrangements.
Historical US Average Hourly Earnings Trends
US average hourly earnings have increased over the past year, although the inflation-adjusted picture has been less favorable.
In September 2025, average hourly earnings for private sector employees were $36.70. By September 2026, they had reached $37.81.
The $1.11 increase over 12 months reflects continued growth in nominal earnings. It does not, however, establish that individual employees received raises of the same size.
A similar increase appears in the production and nonsupervisory employee series. Average hourly earnings for these workers rose from $31.56 in September 2025 to $32.60 in September 2026.
Over longer periods, changes in average hourly earnings can reflect employee pay increases, variations in overtime, changes in employment across industries, and shifts in the mix of workers represented in payroll records.
For example, changes in employment among higher-paying and lower-paying industries can influence the overall average even without equivalent wage increases for every employee.
This is why economic researchers examine wage trends across multiple months and compare the national figures with other indicators, including the Employment Cost Index and inflation-adjusted earnings.
What Is Driving the Latest Changes in Average Hourly Earnings?
Changes in average hourly earnings can result from several factors, including wage adjustments, changes in paid working hours, overtime premiums, and shifts in the composition of employment.
The latest BLS industry data shows that earnings changes were not uniform across the private sector.
In September, average hourly earnings in leisure and hospitality increased from $23.76 to $23.90. Construction earnings increased from $41.64 to $41.69, while manufacturing earnings rose from $36.90 to $36.92.
Retail trade average hourly earnings remained unchanged at $26.38.
These figures demonstrate that earnings developments differ across industries. However, industry-level changes alone do not establish why the national average increased or which factors were primarily responsible.
The overall employment picture provides additional context. Nonfarm payroll employment changed little in September, with a gain of 29,000 jobs, while the unemployment rate remained at 4.2%.
When assessing wages, employers and economists must consider both demand for workers and the composition of employment. A change in average hourly earnings does not automatically indicate that businesses across the country raised their standard wage rates.
September's modest increase should therefore be viewed as one part of a broader labor market picture rather than a complete explanation of compensation conditions.
What Do the Latest Average Hourly Earnings Mean for the US Economy?
Average hourly earnings provide an important measure of wage developments and help economists understand changes in household income, employment conditions, and potential inflation pressures.
Higher nominal wages can support consumer spending by increasing the dollar amount employees receive for their work. However, the economic benefit depends partly on whether wages rise faster than consumer prices.
In September 2026, the Consumer Price Index for All Urban Consumers increased by 0.6% on a seasonally adjusted monthly basis. Consumer prices were 3.7% higher than a year earlier.
During the same period, nominal average hourly earnings increased by 0.1% for the month and 3.0% over the year.
The BLS Real Earnings report consequently showed a 0.5% monthly decrease and a 0.7% annual decrease in real average hourly earnings.
This distinction between nominal and real wages is essential. Nominal wages measure earnings in current dollars, while real wages account for changes in consumer prices.
From an economic perspective, the latest results suggest that average earnings were still increasing, but inflation was reducing their purchasing power.
Wage growth is also relevant to discussions about inflation and monetary policy. The Federal Reserve considers labor market conditions and inflation developments when assessing the economy, although average hourly earnings are only one of many indicators used in that assessment.
A single monthly wage figure cannot establish the future direction of inflation, consumer spending, or interest rates.
How Do Average Hourly Earnings Affect US Employers and Payroll?
Changes in average hourly earnings provide valuable information for US employers, particularly when evaluating compensation costs, hiring plans, and payroll budgets.
For businesses with large hourly workforces, even relatively small changes in pay rates can become meaningful when applied across many employees and payroll periods.
However, national average hourly earnings should be used as an economic benchmark rather than a direct instruction to increase compensation.
Payroll budgeting and labor cost planning
Employers can use national wage trends to establish assumptions for labor cost planning.
For example, a business preparing its next annual budget may compare historical wage growth with its internal compensation expenses, expected staffing levels, and relevant industry benchmarks.
The national average provides context, but actual payroll costs also depend on employee wages, hours worked, overtime, employer payroll taxes, and benefit expenses.
A 3.0% national increase in average hourly earnings does not mean every business should automatically increase its payroll budget or employee pay rates by 3.0%.
Hiring and employee retention
Average hourly earnings trends can help HR teams understand changes in the broader compensation environment.
When evaluating job offers, employers may consider national wage growth alongside occupation-specific pay data, local labor market conditions, employee experience, and recruitment challenges.
Businesses competing for workers in specialized occupations may face different compensation pressures from those reflected in the national average.
Reviewing relevant industry and geographic wage information can therefore be more useful than relying on one nationwide figure.
Payroll accuracy and workforce management
Wage changes also highlight the importance of accurate payroll records.
Employers need reliable information about employee pay rates, scheduled hours, overtime, and compensation adjustments to understand their actual labor expenses.
Modern US payroll software can help businesses organize payroll calculations, track wage-related expenses, and review workforce costs across pay periods.
Employers should also distinguish economic wage data from legal payroll requirements. A change in the BLS average hourly earnings figure does not itself modify federal or state minimum wage laws, overtime obligations, or an employer's existing compensation agreements.
Average Hourly Earnings Outlook: What Should Employers Watch Next?
The next several economic releases will provide additional information about whether US wage growth continues at its recent pace.
The October 2026 Employment Situation report will show whether average hourly earnings increased again and whether the September slowdown in monthly growth continued.
Employers should monitor changes in both monthly and annual wage growth rather than relying on a single report.
Inflation will remain particularly important. Even when nominal earnings increase, rising consumer prices can reduce employees' purchasing power and influence compensation expectations.
The Employment Cost Index is another useful measure. Unlike average hourly earnings, it is designed to track changes in employer compensation costs while controlling for shifts in the occupational and industry composition of employment.
The next Employment Cost Index release, covering the third quarter of 2026, is scheduled for October 30, 2026.
Businesses may also benefit from monitoring job openings, unemployment, labor force participation, and sector-specific employment changes.
Together, these indicators can provide a more complete view of hiring conditions, compensation pressures, and potential workforce planning challenges.
When Is the Next US Average Hourly Earnings Report?
The next US average hourly earnings data is scheduled for release on Friday, November 6, 2026, at 8:30 a.m. Eastern Time.
The release will cover October 2026 and will appear in the Bureau of Labor Statistics Employment Situation report.
Average hourly earnings are published monthly as part of the Current Employment Statistics program, which gathers payroll information from US employers.
The separate October 2026 Real Earnings report, which adjusts wage data for changes in consumer prices, is scheduled for November 10, 2026, at 8:30 a.m. Eastern Time.
Employers and economic researchers can confirm upcoming publication dates through the official BLS Employment Situation release calendar.
Understanding Average Hourly Earnings: Definition and Methodology
Average hourly earnings measure the average amount of gross earnings paid per hour to employees working in the private nonfarm sector.
The US Bureau of Labor Statistics produces this indicator through its Current Employment Statistics program, commonly called the establishment survey.
The survey collects information from employers payroll records and covers employment, earnings, and paid hours across major industries.
At a basic level, average hourly earnings are calculated by dividing total payroll by total paid hours. For broader industry groups, the BLS combines estimates using aggregate payroll and hours.
The measure includes gross earnings and certain premium payments, such as overtime and shift differentials. It excludes employer-paid benefits, employer payroll taxes, irregular bonuses, and retroactive pay.
The headline series covers private sector employees rather than every person working in the United States. It does not include government employees, farm workers, or self-employed people outside the establishment survey's payroll coverage.
The reported national figures are seasonally adjusted to reduce the influence of predictable seasonal patterns.
Average hourly earnings should also be distinguished from an employee's contractual hourly wage. The national statistic reflects actual payroll earnings across employees and jobs, while an individual hourly wage represents a specific rate of pay.
For more information about employee-level pay calculations, see PayDay's guide explaining hourly wages.
Related US Economic Indicators
Average hourly earnings become more meaningful when considered alongside other economic indicators.
Nonfarm payroll employment measures changes in the number of jobs reported by businesses and government agencies. It helps explain whether employment is expanding or contracting. PayDay's nonfarm payroll guide provides related background.
The unemployment rate measures the proportion of the labor force that is unemployed and actively seeking work under the BLS definition. It provides context about overall labor market conditions but does not directly measure wage growth.
The Consumer Price Index (CPI) tracks changes in prices paid by consumers for goods and services. Comparing earnings with consumer price inflation helps explain whether workers are gaining or losing purchasing power.
The Employment Cost Index (ECI) measures changes in employer compensation costs, including wages, salaries, and benefits. It provides a useful comparison because its design reduces the influence of changes in the mix of occupations and industries.
Together, these measures help employers and economic researchers understand the relationship between wages, employment, inflation, and labor costs.
Frequently Asked Questions About Average Hourly Earnings
What are the latest US average hourly earnings?
US average hourly earnings were $37.81 in September 2026, according to the Bureau of Labor Statistics. This represented a 0.1% monthly increase and a 3.0% increase over the previous 12 months.
How much have average hourly earnings increased over the past year?
Average hourly earnings increased from $36.70 in September 2025 to $37.81 in September 2026. This represents an increase of $1.11 per hour, or approximately 3.0%, before adjusting for inflation.
Are average hourly earnings adjusted for inflation?
The headline average hourly earnings figures are reported in current dollars and are not adjusted for inflation. The BLS publishes separate real average hourly earnings statistics that account for changes in consumer prices. Real average hourly earnings decreased by 0.7% over the year ending September 2026.
Does average hourly earnings growth mean every employee received a raise?
No. Average hourly earnings measure earnings across a broad group of employees. Changes can reflect pay adjustments, overtime, changes in workforce composition, and other factors. Individual employees may experience different wage changes.
How often does the BLS release average hourly earnings data?
The BLS publishes average hourly earnings monthly in the Employment Situation report, usually during the following month. Release dates are scheduled in advance and can be confirmed through the agency's official calendar.
Why should US employers monitor average hourly earnings?
Employers can use average hourly earnings trends to understand broader wage developments and support compensation budgeting, hiring strategies, and labor cost planning. The national figures are most useful when combined with industry-specific wage information and internal payroll data.
