Key Points:
- Median wage growth has been strong across the board, averaging 3.7 percent in January 2020, according to the Altanta Fed Wage Tracker.
- Low-income earners’ wages grew 4.7 percent, the highest growth among any income group and above the 4.2 percent rate of average growth since December 2016.
- Wage growth for the bottom has quartile has accelerated, increasing from 3.8 percent in May 2018 to 4.7 percent in Janaury 2020 – an increase of 0.9 percentage points.
- Across all income groups, median wage growth has averaged 3.5 percent since December 2016.
ECONOMIST CORNER:
Wage growth is a good indicator of a healthy job market. As more Americans open businesses and compete for customers, the demand for workers goes up—and so does pay. If business keeps booming, workers in the lowest income quartile will likely see their wages continue to grow as 2020 goes on.