South By North Strategies, Ltd.

The Bureau of Labor Statistics’ report on inflation-adjusted worker earnings in December 2009 shows that workers are losing ground due to declines in average hourly earnings and average weekly hours.

Real average hourly earnings did not change from November to December, seasonally adjusted, the Bureau of Labor Statistics reported today. A 0.2 percent increase in average hourly earnings for production and nonsupervisory workers was offset by a 0.2 percent increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).

Real average weekly earnings was unchanged over the month, seasonally adjusted. This stems from no change in real average hourly earnings and in average weekly hours. Since reaching a recent high point in December 2008, real average weekly earnings have fallen by 1.6 percent.

Real average hourly earnings fell 1.3 percent, seasonally adjusted, from December 2008 to December 2009. A 0.3 percent decline in average weekly hours combined with the decrease in real average hourly earnings resulted in a 1.6 percent decrease in real average weekly earnings during this period.