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