Wage growth hits a new post-recession high

For years after the 2008 financial crisis, growth in average hourly earnings stayed low, hovering at around 2% year over year.

This was most likely not high enough to support the Fed’s stated inflation target of 2% year-over-year.

However, 2016 has seen wages growing at a somewhat faster rate, with average hourly earnings growing in a range of 2.2% to 2.6% year-over-year, and hitting a post-recession high of 2.8% in October, before missing expectations and coming in at 2.5% in November.

According to the December jobs report, average hourly earnings grew by 2.9%, a new post-crisis high and slightly beating the Bloomberg economists’ consensus expectation of 2.8%.

NOW WATCH: Wendy’s is roasting people on Twitter, and it’s hilarious

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.