Wage Growth Slowed to 3.0% in September
Hourly pay growth for U.S. workers eased slightly last month, reaching its slowest pace since May 2021.
Updated on Oct. 2, 2026 in Employment
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Average hourly earnings growth in the United States slowed to 3.0% in September. This marks a deceleration from the 3.1% growth rate recorded in August.
Why it matters
The change in earnings growth helps clarify the current trajectory of labor compensation for American households. It provides an update on how quickly take-home pay is rising relative to prior months.
Average hourly earnings growth was 3.0% in September, a decrease from 3.1% in August. This figure represents the slowest pace of growth for the metric since May 2021.
The players
Labor Department
The federal agency responsible for reporting national employment statistics and labor market metrics.
The details
The Labor Department released updated figures showing a deceleration in the rate at which average hourly earnings are increasing. This rate represents the annual pace of pay growth across the national workforce. When earnings growth moderates, it signals a shift in the compensation environment compared to the levels observed earlier this year.
Timeline
May 2021 was the last time earnings growth was at this low level.
August 2026 saw average hourly earnings growth at 3.1%.
September 2026 recorded a slowed growth rate of 3.0%.
Money Landscape
The current 3.0% growth rate marks a return to levels not seen since May 2021. This move reflects a broader cooling in the pace of pay gains that has been ongoing throughout the current calendar year.
Workers may notice that the pace of salary increases is moderating compared to recent months. Households should review their personal budget plans to account for these changes in expected income growth.
The takeaway
The recent deceleration in earnings growth suggests that the rapid pay gains of the past year are cooling. Households should continue to monitor their pay stubs and stay in contact with a qualified financial professional to adjust their long-term savings strategies as necessary.
Further reading
For more information on national labor trends, see the Employment section.
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