Real average hourly earnings are hourly earnings adjusted for inflation. They are one measure of real wages, which represent the economic return to work.
Despite average hourly earnings trending up, wages are still down after adjusting for inflation.
The Consumer Price Index (CPI) rose 0.4% in December from November and is up 2.9% in the last year.
Real average hourly earnings have fallen from $36.22 in January 2021 to $35.69 in December 2024, a 1.5% decline.
Overall, prices have increased 21.0% since Biden and Harris took office in January 2021.