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.
According to the November jobs report, average hourly earnings grew by 2.5% year-over-year, well below Bloomberg’s consensus economists’ expectations for a continued 2.8% growth rate.
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