The latest Employment Cost Index indicates the slowdown is broad-based and no longer appears to be a temporary blip.
The reading reinforces signs that pay pressures across private employers are easing after a period of stronger labour-cost growth.
Cooling wage gains could affect inflation expectations, labour-market assessments and the outlook for businesses and policymakers monitoring cost pressures.
Wage growth is slowing globally. Is this a cyclical dip or a permanent power shift to employers?
Why do workers expect big raises when data shows wage growth is actually stalling?
With pay raises slowing and inflation persisting, is your real income shrinking permanently?