Real Earnings Drop, As Inflation Eats Up Wage Gains
Real average hourly earnings for all employees decreased 0.2 percent from April to May, seasonally adjusted, the U.S. Bureau of Labor Statistics reports.
This result stems from an increase of 0.5 percent in average hourly earnings combined with an increase of 0.6 percent in the Consumer Price Index for All Urban Consumers (Inflation).
Real average weekly earnings decreased 0.1 percent over the month due to the change in real average hourly earnings combined with no change in the average workweek.
Real average hourly earnings decreased 2.8 percent, seasonally adjusted, from May 2020 to May 2021.
The change in real average hourly earnings combined with an increase of 0.6 percent in the average workweek resulted in a 2.2-percent decrease in real average weekly earnings over this period.
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