US Paychecks Lose Ground: Wage Growth Trails Inflation in Q3
Median weekly earnings in the US rose 1.5%, falling short of 3.5% inflation. Discover the latest BLS data on earnings gaps and demographics.
Full-time workers in the United States are feeling the pinch as US wage growth inflation gaps widen. According to the latest report from the US Bureau of Labor Statistics (BLS), median weekly earnings for full-time employees rose by only 1.5 per cent year-on-year in the third quarter of 2026, failing to keep pace with a 3.5 per cent surge in consumer prices over the same timeframe.
For the country's 122.2 million full-time wage and salary workers, the median weekly earnings during the July-September period stood at USD 1,232. This figure represents the midpoint of the distribution, meaning half of the workforce earned more than this amount, while the other half earned less.
Seasonally Adjusted Earnings on the Decline
The financial outlook appears even more challenging when looking at seasonally adjusted data. The report reveals that median weekly earnings actually dipped to USD 1,239 in the third quarter, sliding from the USD 1,258 recorded in the second quarter of the year.
The Gender Pay Gap Persists
The BLS data continues to highlight a significant disparity in earnings between men and women. Full-time female workers earned a median of USD 1,127 per week, which is approximately 83.4 per cent of the USD 1,352 earned by their male counterparts.
This gap fluctuates across different racial and ethnic demographics:
- Black women: Earned 95.6 per cent as much as Black men.
- Hispanic women: Earned 89.4 per cent as much as Hispanic men.
- Asian women: Earned 81.8 per cent as much as Asian men.
- White women: Earned 81.6 per cent as much as White men.
Earnings by Ethnicity and Education
The report underscores a wide variance in pay based on ethnic background and educational attainment. Asian workers topped the list with the highest median weekly earnings at USD 1,633, followed by White workers at USD 1,261, Black workers at USD 1,012, and Hispanic workers at USD 981.
Education remains a primary driver of income levels for workers aged 25 and above:
- Bachelor's degree or higher: Median earnings of USD 1,752 per week.
- High school graduates (no college): Median earnings of USD 993 per week.
- No high school diploma: Median earnings of USD 819 per week.
Occupational Divide
Profession and role also played a critical role in determining weekly take-home pay. Those employed in management and professional roles saw the highest returns, with men earning a median of USD 1,910 and women earning USD 1,493.
Conversely, those in service occupations earned the least, with median weekly earnings of USD 876 for men and USD 760 for women.
The BLS has indicated that its next report, which will cover the fourth quarter of 2026, will include annual revisions to the seasonally adjusted data.