Inflation Rise Wipes Out Earnings Gain in September

October 19, 2004 (PLANSPONSOR.com) - The Bureau of Labor Statistics, part of the US Department of Labor (DoL), has released data that shows real average weekly earnings were unchanged from August to September.

A 0.2% increase in average hourly wages was offset by a 0.2% rise in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), the DoL statistics show. Average weekly hours were unchanged between the two months.

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The numbers for the year ending in September were more positive. The average weekly earnings rose by 3.0% from September 2003 to September 2004. Following deflation of the CPI-W, average weekly earnings increased by 0.6%. Before adjustments for inflation and seasonal change, the average weekly earnings rose over $10 for the year, up to $530.88 from $520.33.

The data collected by the DoL is from the payroll reports of private non-farm establishments. Both full-time and part-time workers holding production and non-supervisory jobs are included. The real average weekly earnings are calculated by adjusting earnings in current dollars for changes in the CPI-W.

The real earnings for October will be released on November 17.

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