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The No. 1 cause of America’s affordability problem just got worse

American workers earned an average $36.86 hourly in November, up 3.5% over the past year, but Thursday's Consumer Price Index is expected to show 3.10% inflation narrowing real pay gains.
With fewer quits and job losses in recent reports, employers face less pressure to raise pay, reducing wage growth as the US economy lost jobs in three of the past six months.
Data show uneven gains across earners, with middle-income households gaining 2.3% and low-income households 1.4% over the past year, while hourly pay growth peaked at 5.90% in March 2022 and has fallen since.
JPMorgan warns companies will pass tariff costs to consumers next year, as firms have absorbed roughly 80% so far and prices have been creeping higher in recent months.
The Fed has cut rates in three straight meetings to lower borrowing costs for businesses, and Federal Reserve Chair Jerome Powell said boosting the job market is the best way to address cost-of-living concerns.

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