September Pay Rose 5 Cents as Hiring Slowed

September's paycheck signal softened: average private-sector hourly earnings rose just 5 cents, while payrolls added 29,000 jobs and the unemployment rate held at 4.2%. For household budgets, the important shift is not a sudden pay cut. Income growth is providing little cushion just as the next inflation report approaches.

Key Takeaways Average hourly earnings rose 0.1% in September to $37.81, after a 0.3% increase in August. Average weekly earnings rose $1.72 to $1,300.66, as the average workweek stayed at 34.4 hours. Payroll employment increased by 29,000 in September, and revisions reduced July and August employment by a combined 60,000. August CPI was up 3.4% over the year, while Septembe…