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. In March, wages grew at a slightly slower 2.3% since the previous year.
According to the April jobs report, wages grew 2.5% year-over-year, matching the recent highs in December and January.
- Business Insider/Andy Kiersz, data from Bureau of Labor Statistics