Average Hourly Earnings Rose 3 Percent Year-Over-Year

Key Points:

  • Average hourly earnings rose 3.1 percent in January for private sector employees.
  • Wage growth has been at or above 2.9 percent for 18 consecutive months.

Economist Corner:

As the record-long economic expansion continues, average hourly earnings for all private employees have continued to increase at or above 2.9 percent. These gains benefit low-skilled workers disproportionately, with those in the bottom decile of income outpacing those at the top. Higher wages are not only a positive for the labor market, however, as they are also a positive signal for consumption.