Newly Released BLS Report Shows Real Earnings Flat In September 2025 – Program Business

Report on U.S. Real Earnings for September 2025 and Implications for Sustainable Development Goals

Data released by the Bureau of Labor Statistics (BLS) for September 2025 offers a critical assessment of inflation-adjusted earnings for U.S. workers. These figures serve as vital indicators for monitoring progress towards several United Nations Sustainable Development Goals (SDGs), particularly those focused on poverty, decent work, and inequality.

Key Findings from the BLS Real Earnings Report

All Private Nonfarm Employees

The economic status of the general workforce shows signs of stagnation, which directly impacts the achievement of decent work standards as outlined in SDG 8.

• Monthly Real Earnings (August to September 2025):
  • Real average hourly earnings remained unchanged, as a 0.2% rise in nominal earnings was offset by a 0.3% increase in the Consumer Price Index (CPI-U).
  • Real average weekly earnings decreased by 0.1%.
• Annual Real Earnings (September 2024 to September 2025):
  • Real average hourly earnings increased by 0.8%.
  • Real average weekly earnings increased by 0.7%, with the average workweek remaining unchanged.

Production and Nonsupervisory Employees

This demographic, often representing the most vulnerable segment of the workforce, experienced a decline in hourly purchasing power, a concerning trend for SDG 1 (No Poverty) and SDG 10 (Reduced Inequalities).

• Monthly Real Earnings (August to September 2025):
  • Real average hourly earnings decreased by 0.1%, as a 0.3% nominal increase was matched by a 0.3% rise in the Consumer Price Index (CPI-W).
  • Real average weekly earnings increased by 0.2%, driven by a 0.3% increase in the average workweek.
• Annual Real Earnings (September 2024 to September 2025):
  • Real average hourly earnings rose by 0.8%.
  • Real average weekly earnings also increased by 0.8% over the year.

Analysis of Findings in the Context of Sustainable Development Goals

SDG 8: Decent Work and Economic Growth

The report indicates a challenging environment for achieving decent work. The stagnation of real hourly earnings for all employees suggests that nominal wage growth is not translating into improved living standards due to inflation. For production and nonsupervisory employees, the increase in weekly earnings was achieved only through an extension of working hours, which may compromise work-life balance, a key component of the decent work agenda.

SDG 1: No Poverty & SDG 10: Reduced Inequalities

The data highlights significant concerns for poverty reduction and inequality. The 0.1% monthly decline in real hourly earnings for production and nonsupervisory employees, while the overall average remained flat, points to a potential widening of the income gap. This trend undermines progress on SDG 10. When the purchasing power of lower-paid workers erodes, their risk of falling into poverty increases, directly impeding the goals of SDG 1.

Methodological Considerations and Data Limitations for SDG Monitoring

The BLS report provides valuable macroeconomic indicators, but its limitations must be considered for a comprehensive SDG analysis.

1. Lack of Disaggregation: The data is presented as broad averages and is not disaggregated by crucial factors such as gender, age, race, or geography. This prevents a detailed analysis of inequalities as required by SDG 10, which calls for empowering and promoting the social, economic, and political inclusion of all.
2. Exclusion of Non-Standard Employment: The survey focuses on payroll employment, potentially overlooking workers in the gig economy or other non-standard forms of work. A full assessment of SDG 8 requires data on all forms of employment.
3. Averages vs. Lived Experience: The averages do not capture the full spectrum of worker experiences. Averages can be skewed by high earners, masking the precarity faced by those at the bottom of the wage distribution, which is the primary focus of SDG 1.

Conclusion: Implications for SDG Progress

The September 2025 Real Earnings report signals a period of economic pressure on U.S. workers, posing a significant challenge to the advancement of the Sustainable Development Goals. The erosion of real wages by inflation, particularly for production and nonsupervisory employees, directly threatens progress on SDG 1 (No Poverty), SDG 8 (Decent Work and Economic Growth), and SDG 10 (Reduced Inequalities). Achieving these goals will require economic policies that ensure wage growth outpaces inflation, thereby translating into tangible improvements in purchasing power and living standards for all segments of the workforce.

Sustainable Development Goals (SDGs) Addressed in the Article

1. SDG 8: Decent Work and Economic Growth

   • The article directly addresses economic performance and labor market conditions, which are central to SDG 8. It provides a detailed analysis of workers’ earnings, both nominal and real (inflation-adjusted), and the length of the average workweek. By focusing on “Real average hourly earnings” and “Real average weekly earnings,” the article assesses the economic well-being and purchasing power of employees, which is a key component of “decent work.” The data on the “average workweek of 34.2 hours” also relates to conditions of employment.

2. SDG 1: No Poverty

   • While not explicitly mentioning poverty, the article’s core subject—real earnings—is fundamentally linked to SDG 1. Real earnings determine a household’s ability to afford basic necessities. The report’s finding that “Real average hourly earnings for all employees stayed the same from August to September 2025” while the “Consumer Price Index for All Urban Consumers (CPI-U)” increased indicates that wages are not out-pacing inflation, which can impact the financial stability of low-income workers and push them closer to the poverty line.

3. SDG 10: Reduced Inequalities

   • The article contributes to the understanding of income inequality by disaggregating data for two different groups: “all employees” and “production and nonsupervisory employees.” This separation allows for a comparison of wage trends between the general workforce and a segment that typically represents lower- and middle-wage workers. The finding that “real average hourly earnings for production and nonsupervisory employees dipped 0.1%” while the average for all employees “stayed the same” over the month highlights potential disparities in economic outcomes between different worker groups.

Specific SDG Targets Identified

1. Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men… and equal pay for work of equal value.

   • The article’s detailed reporting on “average hourly earnings” and “average weekly earnings” directly relates to the “equal pay for work of equal value” component of this target. It provides the foundational data required to assess wage levels and their adequacy. The analysis of real earnings, which accounts for inflation, is crucial for determining whether the work provided is “decent” in terms of maintaining a stable standard of living.

2. Target 10.4: Adopt policies, especially fiscal, wage and social protection policies, and progressively achieve greater equality.

   • The data presented in the article serves as a crucial feedback mechanism for evaluating the effectiveness of wage and fiscal policies. By tracking metrics like “real average hourly earnings” for different segments of the workforce (e.g., “production and nonsupervisory employees”), policymakers can assess whether economic growth is translating into improved purchasing power for all workers, a key step toward achieving greater equality. The article’s data shows a 0.8% year-over-year increase in real hourly earnings for both groups, providing a benchmark for this target.

Indicators for Measuring Progress

1. Implied Indicator for Target 8.5: Average hourly earnings.

   • The article provides direct measurements that align with the official SDG indicator 8.5.1 (Average hourly earnings…). It reports specific values such as “Nominal average hourly earnings reached $36.67” for all employees and “$31.53” for production and nonsupervisory employees. It also provides the inflation-adjusted figures (“real average hourly earnings”). While the article does not disaggregate this data by gender or other demographics as the official indicator requires, it provides the core metric used for measurement.

2. Implied Indicator for Target 10.4: Growth rates of income for different population segments.

   • The article provides data that can be used to track income growth, which is central to measuring progress on reducing inequality (related to indicator 10.1.1). The year-over-year analysis states, “real average hourly earnings for all employees rose 0.8% from September 2024 to September 2025,” and that the rate was the same for “production and nonsupervisory employees.” This comparison of growth rates between the average worker and a lower-wage segment is a direct way to measure whether income gaps are widening or narrowing.

3. Implied Indicator: Consumer Price Index (CPI) as a measure of inflation.

   • The article repeatedly mentions the “Consumer Price Index for All Urban Consumers (CPI-U)” and the “Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).” The CPI is a critical indicator for understanding the economic environment. It is used to deflate nominal earnings to calculate “real earnings,” thereby providing a true measure of purchasing power. This is essential for assessing progress on poverty reduction (SDG 1) and decent work (SDG 8), as it determines the actual value of the wages workers receive.

Summary Table: SDGs, Targets, and Indicators

Source: programbusiness.com