Average hourly earnings top $38 but buy 0.6% less: the October real-pay squeeze

The typical American hourly wage crossed $38 for the first time in October, yet those paychecks are buying less than they did a year ago. Average hourly earnings for all private employees rose to $38.00, according to the Bureau of Labor Statistics employment report released November 6, up 3.1 percent from the $36.85 of a year earlier. But the consumer price index, which had run up 3.7 percent over the year to September, grew faster than that raise. Subtract inflation from the paycheck and real hourly earnings actually fell about 0.6 percent in the year to October.

Key Takeaways Average hourly earnings reached $38.00 in October, up 3.1 percent from a year ago, per the Bureau of Labor Statistic…