Real wages fell over the year to September even as paychecks rose: what the Q3 ECI says about the cost of living

Friday's 8:30 a.m. ET release of the Q3 Employment Cost Index is the week's most direct read on the household budget. The Bureau of Labor Statistics reported that compensation for civilian workers rose 0.8 percent in the three months ending September, but the figure that matters for the family ledger is the one buried in the same release: after inflation, wages lost buying power for another quarter. Real, constant dollar wages for civilian workers fell 0.6 percent over the year to September, the ECI shows, even as nominal paychecks kept rising.

Key Takeaways Real, constant dollar wages fell 0.6 percent over the year to September, according to the BLS Employment Cost Index. Civilian compensati…