Real average weekly earnings drop 0.5% for January

Real average weekly earnings fell by 0.5 percent from December 2007 to January 2008 after seasonal adjustment, according to preliminary data released February 20 by the U.S. Department of Labor's Bureau of Labor Statistics. A 0.3 percent decrease in average weekly hours and a 0.4 percent increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) were partially offset by a 0.2 percent increase in average hourly earnings. 

Data on average weekly earnings are collected from the payroll reports of private non-farm establishments. Earnings of both full-time and part-time workers holding production or nonsupervisory jobs are included. Real average weekly earnings are calculated by adjusting earnings in current dollars for changes in the CPI-W.

Average weekly earnings rose by 3.4 percent, seasonally adjusted, from January 2007 to January 2008.  After deflation by the CPI-W, average weekly earnings decreased by 1.4 percent. Before adjustment for seasonal change and inflation, average weekly earnings were $592.74 in January 2008, compared with $573.14 a year earlier.

To read the full report, visit www.bls.gov.