Rising hours may be supporting lower-paid paycheck growth

Summary

• Average weekly hours in the private sector increased 0.5% year-over-year from July through September 2026 according to Bureau of Labor Statistics data.
• Weekly hours rose fastest in utilities, mining, retail trade, & manufacturing during the July-September 2026 period.
• Weekly hours fell in transportation & warehousing, information, leisure & hospitality, & financial activities during the same period.
• Industries with rising hours such as retail, nondurable goods manufacturing, & other services tend to have lower pay levels.
• Hourly-paid workers in these lower-paying industries are likely experiencing increased paycheck growth due to the rise in hours worked.
• This trend may help narrow the K shape observed in after-tax wage growth.
• Average hourly earnings for the private sector ranged from $23.77 in leisure & hospitality to $56.18 in utilities for July-September 2026.
• The publication was prepared by the Bank of America Institute with contributions from Liz Everett Krisberg & David Michael Tinsley.