U.S. Average Hourly Earnings MoM (2025-05-02)

 

Average Hourly Earnings measures the change in the price businesses pay for labor, not including the agricultural sector.

As of April 2025, U.S. Average Hourly Earnings increased by 0.2% month-over-month, slightly below the forecasted 0.3% and down from the previous month's 0.3% gain.

This modest wage growth suggests a cooling in labor cost pressures, which could influence the Federal Reserve's considerations regarding interest rate adjustments. Despite the slower wage growth, the labor market remains resilient, with 177,000 jobs added in April and the unemployment rate steady at 4.2%.

However, economists express caution, noting that ongoing trade tensions and tariffs may pose risks to future employment and wage growth. Sectors such as manufacturing and retail have already experienced job losses, potentially reflecting the early impacts of these trade policies.