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Wage growth slows down

Andy Kiersz   

Wage growth slows down
Stock Market1 min read

For years after the 2008 financial crisis, growth in average hourly earnings stayed low, hovering at around 2% year-over-year.

This was most likely not high enough to support the Fed's stated inflation target of 2% year-over-year.

However, 2016 saw wages climb at a somewhat faster rate, with average hourly earnings among all private employees growing in a range of 2.2% to 2.6% year-over-year, hitting a post-recession high of 2.9% in December.

According to the April jobs report, wages grew 2.5% from the previous year, falling below economists' expectations of 2.7% and below the 2.7% rate in March.

hourly earnings growth april 2017

Business Insider/Andy Kiersz, data from Bureau of Labor Statistics

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