U.S. wage growth slowed in July, with Average Hourly Earnings rising 3.2% year-over-year, down from 3.5% in June 2026. The figures, updated on 7 August 2026, indicate a moderation in pay pressures as the labor market continues to adjust after a period of stronger wage gains.
The current 3.2% reading compares the change in average hourly earnings in July 2026 with July 2025, while the previous 3.5% figure reflected the change in June 2026 versus June 2025. The step down in annual wage growth suggests some easing in income momentum for U.S. workers, a development that may factor into assessments of consumer spending strength and broader inflation trends.
Market participants and policymakers are likely to watch whether this softer pace of wage increases persists in the coming months, as it could influence expectations for economic growth and the future path of interest rates. For now, the July numbers point to a gradual cooling rather than a sharp reversal in U.S. earnings growth.
