Real earnings in the United States moved back into positive territory at the start of 2026, signaling a modest improvement in workers’ purchasing power. According to the latest data updated on 13 February 2026, real earnings rose 0.5% in January 2026 on a month-over-month basis, following a 0.5% decline in December 2025.
The figures are based on a comparison of each month to the previous one, highlighting a clear turnaround in momentum. December’s reading, which showed a -0.5% change versus November 2025, had pointed to an erosion in real income once inflation was taken into account. January’s 0.5% increase suggests that either nominal wage growth outpaced price rises, or inflation pressures eased enough to lift real earnings back into growth.
This shift from contraction to expansion in real earnings is likely to be closely watched by policymakers and markets, as it offers an early signal on the balance between wage dynamics and inflation at the outset of 2026.
