Economics

U.S. Workers Win Bigger Pay Gains by Becoming More Productive

  • Average hourly earnings rise at fastest clip since 2009
  • Tight U.S. job market is boosting pay and productivity
Photographer: Ty Wright/Bloomberg
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U.S. workers may be finally getting a pay raise -- and perhaps more importantly, they’re earning it by becoming more efficient.

Average hourly earnings for private workers increased 2.9 percent in August from a year earlier, the most since the recession ended in mid-2009, the Labor Department said Friday. The gains were broad-based, ranging from manufacturing to retail.