U.S. Wage Growth Slows to Lowest Level in Over Two Years

Data on average hourly wages in the United States showed a notable slowdown in wage growth during November 2025, providing further evidence of easing inflationary pressures in the U.S. labor market.

The average hourly wage for all private-sector non-farm workers increased by only 5 cents, or 0.1% month-over-month, reaching $36.86, compared to a 0.4% increase in October. This reading was below market expectations of approximately 0.3%, marking the weakest increase since August 2023.

For production and non-supervisory employees in the private sector, the average hourly wage rose by 11 cents, or 0.3%, to $31.76 in November, indicating a disparity in wage growth across different segments of the labor market.

On an annual basis, the growth of average hourly wages slowed to 3.5% in November, the lowest rate since May 2021, down from 3.7% in the previous month, reinforcing signals of moderating wage momentum after a period of strong increases.

Markets are closely monitoring this data as a key factor in assessing the inflation trajectory and the direction of Federal Reserve monetary policy, especially amid rising expectations that the central bank may adopt a more accommodative policy in the near future.