Charts of the Week
U.S. Average Hourly Earnings
Chart of the Week for February 10, 2017 - February 16, 2017
Average hourly earnings for U.S. employees increased 0.1% in January 2017 compared to December 2016 as noted in the chart above, and year-over-year wage growth was 2.5% as of January 2017. The monthly percentage change growth numbers were variable over 12-month period, with a high of 0.4% growth in July 2016, and no growth in both February and November 2016.
Some economists were disappointed by the January growth figure and the overall pace of wage growth increase since the Great Recession. Economists also believe that wage growth should increase in 2017 as employment numbers have been strong and minimum wage increases begin to take effect in several states. Wage growth is a key economic indicator watched by the Federal Reserve Board as it monitors inflation and it is believed that inflation should be limited until annualized earnings growth rises by 3.5% or more outside of other significant economic events.
Posted by: sarah_oz@yahoo.com
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