The ‘No Hiring, No Firing’ Job Market Now Means Fewer Raises, Too

Investopedia Markets News (all except PF) · Oct 2, 2026

Worker raises have failed to keep up with prices since the spring.Credit: Drazen Zigic / Getty ImagesWhat You Need to KnowAverage hourly wages only increased 3% year over year in September, a five-year low.Pay raises likely trailed inflation for a sixth straight month, eroding the buying power of paychecks.Slow wage growth in a stagnant labor market could undermine consumer spending.For more than a year, economists have described the job market as a “no-hire, no-fire” environment. For many, it’s also been “no raises.”Average hourly earnings rose 0.1% in September from August and 3% from a…