Average hourly earnings · all private

## What this measures

Year-over-year percentage change in average hourly earnings across all private-sector employees. The underlying series measures gross pay per hour, including overtime and shift premiums but excluding benefits, irregular bonuses, and retroactive pay.

## Why it matters

Wage growth drives consumer spending power and signals whether labor markets are tight or slack. Rising earnings can fuel inflation, prompting central banks to raise interest rates, which affects borrowing costs and demand for goods and services. Shifts in this measure help leaders anticipate changes in consumer behavior and monetary policy.

## How to read it

A rising value indicates hourly pay is growing faster than a year earlier, suggesting stronger wage pressures. A falling or negative value points to slower wage growth or outright declines. Compare moves to inflation rates to assess whether real purchasing power is rising or falling.

## What it does not say

This measure reflects changes in both individual earnings and the mix of workers employed in each period; it does not distinguish between pay raises for existing workers and shifts in the composition of the workforce. It excludes benefits, which can be a large part of total compensation.

## Source

The Bureau of Labor Statistics publishes average hourly earnings monthly through the Current Employment Statistics survey. Palanor pulls the series from the FRED API nightly.