The dollar in an American worker's pocket bought less in September than it did in August, and less again than the month before that. For the third month running, pay rises failed to keep pace with the cost of living.
Real average hourly earnings, which measure take-home pay against prices, fell 0.5 per cent over the month, the US Bureau of Labor Statistics reported on 14 October. That was the sharpest monthly drop since the spring and the third consecutive decline, after slips of 0.1 per cent in July and August. Over the full year, the real value of an hour's work was down 0.7 per cent.
