US wages stalled in February after months of strong growth

Jason Furman (PIIE) and Wilson Powell III (Harvard Kennedy School)

US wages stalled in February after months of strong growth

Description

Private-sector wage growth in February was nearly flat, adding just 0.5 percent at an annual rate (adjusted for changes in composition of the workforce), following 10 months of strong growth. In the last three months, average hourly earnings grew at a 4.2 percent annual rate, the slowest pace since March 2021. Whether this is just a temporary decrease or indicative of a larger downward trend remains to be seen.

This PIIE Chart is based on Jason Furman and Wilson Powell III's blog, US gained surprising number of jobs in February but wage growth was nearly flat.

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