Year-over-year growth in U.S. average hourly earnings ticked down in October 2025, pointing to a modest cooling in wage pressures across the labor market. According to the latest data updated on 16 December 2025, average hourly earnings rose 3.7% in October compared with the same month a year earlier, slightly below the 3.8% annual increase recorded in September 2025.
Both figures are calculated on a year-over-year basis, comparing each month’s wage growth to the corresponding month a year prior. The marginal decline from 3.8% to 3.7% suggests that while wage gains remain solid, they are edging lower rather than accelerating. This subtle deceleration will be closely watched by investors and policymakers as they assess the balance between maintaining consumer spending power and alleviating inflationary pressures in the broader economy.
