Spotlight/wages: Paychecks are growing faster across Buffalo Niagara

Paychecks are starting to grow again across the Buffalo Niagara region.

New data from the U.S. Bureau of Labor Statistics shows that the average weekly earnings of private-sector workers across the region grew at a 5% annual pace during September. That was the biggest jump since April 2022, when companies were scrambling to hire workers coming out of the pandemic.

The trend toward rising earnings is a sign that the local economy remains on solid ground, even as hiring has slowed throughout this year.

One thing to remember about the average earnings data: They reflect not only the hourly wage that a worker earns, but how many hours that worker is on the job. So workers can earn the same hourly wage from month to month, but their overall earnings can fluctuate depending on whether they are working overtime or are on a reduced schedule.

Earnings spiked coming out of the pandemic as companies scrambled to hire all the workers they wanted. Many couldn’t, and they were forced to ask the workers that they did have to work longer hours, boosting earnings. Hourly wages also rose because of the competition among companies for workers.

That competition has since cooled as hiring has slowed, keeping a lid on average earnings. Companies also took steps to make due with fewer workers by boosting efficiency or adding automated systems. But that hasn’t eliminated the need to extend the work week when more work needs to be done.