Markets News
EconomySeptember 23, 20261 min read

Bessent Highlights Blue-Collar Pay Gains as Real Hourly Wages Slip

His manufacturing and construction figures measure gains since January 2025, while national data show real hourly pay fell over the past year.

Treasury Secretary Scott Bessent said real weekly earnings for manufacturing workers rose 4.1% and for construction workers 5% since January 2025. The figures, posted on X on Monday, use a longer comparison period than the latest national wage data.

The Bureau of Labor Statistics’ August report shows real average hourly earnings for all private-sector workers fell 0.3% over the year. Real weekly earnings rose 0.3%, helped by a 0.6% increase in average weekly hours.

For production and nonsupervisory employees, a broad group that includes factory and construction workers, real weekly pay rose just 0.1% over the year. Their real hourly earnings slipped 0.1%.

Bessent’s figures focus on two industries and weekly pay since January 2025. Weekly earnings include both hourly pay and hours worked, so longer shifts can lift the total even when inflation-adjusted hourly pay grows more slowly.

That distinction shows up in the sector data. Construction workers averaged 40.2 hours a week in August, compared with 39.4 hours in January 2025. Factory workers’ average workweek was also about an hour longer, according to BLS figures.

More hours mean larger weekly checks, but they do not necessarily mean higher pay for each hour worked. Hours can also change with employers’ staffing needs, making weekly earnings more vulnerable to a slowdown than hourly rates.

The BLS said August’s earnings figures are preliminary and may be revised. Its next releases will show whether the recent gains hold, and whether they reflect rising hourly pay or continued longer workweeks.

Scott BessentU.S. Treasury

This article was produced with the help of AI technology.
Source: Yahoo Finance

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