WASHINGTON — Average hourly earnings for U.S. private-sector workers edged higher in July, rising by 2 cents to $37.62, while annual wage growth slowed, according to data released Friday by the U.S. Bureau of Labor Statistics.
The increase left average hourly earnings essentially unchanged on a monthly basis after the measure rose 0.3% in June. Over the 12 months through July, average hourly earnings increased 3.2%, the BLS said.
The wage figures came as the broader labor market showed limited movement. Nonfarm payroll employment fell by 23,000 in July, while the unemployment rate edged down to 4.1% from 4.2% in June. The labor force participation rate also declined slightly to 61.4%.
The BLS reported that average hourly earnings for private-sector production and nonsupervisory employees increased by 4 cents in July to $32.40. The average workweek for all private nonfarm employees remained unchanged at 34.3 hours.
The moderation in wage growth was accompanied by weak overall payroll gains. Employment declined in several sectors, including local government education, retail trade, financial activities and leisure and hospitality. Health-care employment continued to rise, although at a slower pace than its average monthly gain over the previous year.
The BLS said employment in local government education fell by 50,000 in July, while retail employment declined by about 19,000. Financial activities lost 14,000 jobs, and leisure and hospitality employment fell by 40,000. Health care added about 22,000 jobs.
The agency also revised previous payroll estimates lower. May employment growth was revised to 63,000 from 129,000, while June was revised to 20,000 from 57,000. The revisions reduced combined employment growth for those two months by 103,000.
The July wage data provide a measure of pay pressures in the labor market, although they do not account for changes in consumer prices. The BLS is scheduled to release its July real earnings data on Aug. 12.
The next monthly Employment Situation report, covering August, is scheduled for release on Sept. 4, the BLS said.
