UNITED STATES NATIONAL ECONOMY — Average hourly earnings for non-supervisory workers in the United States rose 3.4% over the past year, according to government data released Friday. The increase was the slowest pace of wage gains since 2021.

Average pay increases in each of the two prior years were closer to 4%, according to the data.

"Four percent is above that 3.5 percent annual wage gain, and that's where you see a lot of squeeze on workers, particularly middle-class and moderate-income workers," said Heather Long, Chief Economist at Navy Federal Credit Union.

"With the recent uptick in inflation driven by energy prices, real wage growth is likely to decelerate further, putting increased pressure on consumers," said David Royal, Chief Financial and Investment Officer at Thrivent.

Orphe Divounguy, Senior Economist at Zillow, pointed to additional factors. "With choppy job growth, weaker labor-force attachment and rising uncertainty, many households — especially renters and first-time buyers — could become more cautious as weaker inflation-adjusted wages erode recent affordability improvements," Divounguy said.