January 10, 2025
Average hourly earnings rose 0.3% in December to $35.69 after having climbed 0.4% in November. Earnings growth has slowed from 4.3% at the end of 2023 to 3.9% in 2024. The earlier decline in earnings appears to reflect the flood of workers from Latin America crossing over the southern border with Mexico who were willing to take a lot of low-paying jobs as they try to survive in their new home. The number of illegal immigrants entering the country in recent months has slowed considerably.
While nominal earnings have risen 3.9% in the past year, inflation has risen almost as quickly and real or inflation-adjusted earnings have risen only 1.3% in that same period of time.
Average weekly earnings rose 0.3% in December to $1,224.17 after having risen 0.4% in November. In the past year weekly earnings have risen 3.6%.
Stephen Slifer
NumberNomics
Charleston, SC
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