U.S. Workers’ Real Wages Drop 1.1% Since February as Payroll Data Diverge
Updated
Updated · Econbrowser · Jun 5
U.S. Workers’ Real Wages Drop 1.1% Since February as Payroll Data Diverge
2 articles · Updated · Econbrowser · Jun 5
Summary
Average real hourly wages have fallen sharply since February, down 1.1% using a May CPI nowcast and 1.6% through April using the wage earners and clerical workers CPI.
That erosion comes even as headline payrolls looked firmer: May nonfarm payrolls rose 72,000 and April was revised higher, but the household survey and ADP data point to a weaker employment trend.
The gap between the establishment survey and other labor gauges remains wide, with the 72,000 May gain needing caution because the average absolute revision from first to third releases in 2025 was 53,000.
Taken together, the report suggests workers’ inflation-adjusted pay is deteriorating despite apparently resilient payroll figures, complicating the picture of labor-market strength.