Key facts
- From July 2025 to July 2026, nominal wages grew 3.5% while inflation was 3.4%.
- Real wage growth was positive in only five states over the 12 months ending June 2026.
- New Mexico led states with 5.9% real wage growth, while Minnesota saw the largest decline at -5.1%.
- Since March 2006, nominal average wages rose 88.3%, but real wage growth was 12.7%.
While nominal wages have shown growth, inflation has eroded purchasing power for many American workers, with real wages declining in most states over the past year. Between July 2025 and July 2026, nominal average weekly wages increased by 3.5% to $1,290, while the inflation rate was 3.4%. This resulted in a real wage growth of just 0.09%, or an additional $1.00 per week.
Geographically, the impact varies significantly. Over the 12 months ending in June 2026, only five states experienced positive real wage growth. New Mexico led with a 5.9% increase, followed by Louisiana, Wyoming, New Jersey, and Indiana. In contrast, 45 states and Washington D.C. saw real wages fall, with Minnesota experiencing the most significant decrease at -5.1%.
Since March 2006, nominal average wages have risen by 88.3%, but when adjusted for inflation, the real wage growth amounts to 12.7%. Historically, average wages have outpaced inflation 72.4% of the time since March 2006, with wage growth being faster than inflation in every month since June 2026.