Wage growth since the Great Recession has remained fairly low, hovering around just 2%. This is most likely not high enough to support the Fed’s stated inflation target of 2% year-over-year.
Over the past few months, wage growth has happened at a somewhat faster rate than this, reaching a postcrisis high of 2.5% in December and January. That rate slowed down last month, however, with February’s wage growth coming in at just 2.2% since the previous year.
According to the March jobs report, wages grew 2.3% over the past year, a faster rate of growth than in February and beating expectations for 2.2% growth: