U.S. Private-Sector Paychecks Outpace Inflation Since 2025 Under Trump
Average weekly earnings in the private sector rose 6.3% from January 2025 to August 2026, while the Consumer Price Index increased 4.8%, yielding a 1.5% real gain.
According to the Bureau of Labor Statistics, the average weekly paycheck for private-sector employees increased from $1,222.14 in January 2025 to $1,298.94 by August 2026, a nominal rise of 6.3%. Over the same span, the Consumer Price Index climbed 4.8%, so inflation-adjusted earnings were up 1.5%, roughly $18 a week in 2025 dollars. The most recent three-month window, May through August 2026, saw a 1.0% pay increase while the CPI rose only 0.05%, adding about $12 to weekly real pay.
In the preceding Biden era (January 2021-January 2025), wages grew 16.7% but prices surged 21.4%, eroding purchasing power and leaving real weekly pay down 3.9%, equivalent to a loss of about $50 per one outlet in 2025 dollars. Production and nonsupervisory workers, who make up about four-fifths of private payrolls, mirrored these trends, with real pay falling under Biden and rising under Trump.
Why it matters
It indicates whether household earnings are keeping pace with rising prices, affecting Americans' standard of living.
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