US average hourly earnings showed accelerated growth in December, rising 0.3% on a month-over-month basis and meeting economist expectations. The December figure represents a notable improvement from wage growth trends observed in recent months.

December Earnings Performance

The latest employment data reveals that average hourly earnings increased by 0.3% in December compared to the previous month. This growth rate precisely matched economist forecasts, indicating that wage inflation is tracking in line with market expectations.

Month-over-Month Comparison

The December earnings growth of 0.3% represents a significant acceleration from the previous month's performance of 0.1%. This threefold increase in the monthly growth rate suggests strengthening wage pressures in the US labor market. The improvement from 0.1% to 0.3% indicates that employers are increasing compensation at a faster pace.

Market Expectations Alignment

The actual December reading of 0.3% matched economist predictions exactly, demonstrating that wage growth is progressing in line with market consensus. This alignment between actual results and forecasts suggests that labor market dynamics are developing as anticipated by economic analysts and may provide clarity for monetary policy considerations.

U.S. average hourly earnings posted a modest gain in November, coming in below both market expectations and the previous month's performance, according to the latest employment data.

November Earnings Performance

The following table summarizes the key earnings data for November:

The 0.10% increase in average hourly earnings for November represents a deceleration from the previous month's 0.20% growth rate. More notably, the actual figure fell short of the 0.30% increase that economists had anticipated.

Market Implications

This slower-than-expected wage growth could signal a cooling in the labor market's momentum. Average hourly earnings serve as a crucial indicator of worker compensation trends and overall economic health, as wage growth directly impacts consumer spending capacity and inflationary pressures.

The sequential decline from 0.20% in October to 0.10% in November suggests that the pace of wage increases may be moderating. This development comes at a time when market participants closely monitor employment-related metrics for insights into broader economic conditions.

Economic Context

The below-expectation performance in hourly earnings growth may influence monetary policy considerations and market sentiment. Wage growth is a key component in assessing labor market tightness and inflationary pressures within the economy, making this data point particularly significant for economic forecasting and policy decisions.

The modest 0.10% increase in November's average hourly earnings falls short of the expected 0.30% growth and marks a deceleration from October's 0.20% increase. This unexpected slowdown in wage growth momentum could potentially indicate a cooling trend in the labor market, which may have broader implications for the overall economic outlook.