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Lower Real Wages Darken U.S. Economic Outlook: Chart of the Day

Households are in a poor position to sustain U.S. economic growth because their wages are failing to keep pace with inflation, according to Pavilion Global Markets Ltd. strategists.

As the CHART OF THE DAY shows, average hourly earnings at private employers have fallen on an inflation-adjusted basis all but once since February 2011, according to monthly data compiled by the Labor Department. The exception occurred in July, when so-called real earnings were unchanged.