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What does average hourly earnings mean?
The US Average Hourly Earnings report is a monthly economic indicator published by the US Bureau of Labor Statistics (BLS). It measures the average amount of money employees earn per hour worked in non-agricultural industries, including the manufacturing, construction, and service sectors.
The report is based on data from the BLS’ Current Employment Statistics (CES) survey, which surveys a sample of businesses and government agencies across the country. The CES Survey is one of the most comprehensive sources of data on employment and earnings in the United States.
The Average Hourly Earnings report is an important economic indicator because it provides insight into the health of the US labor market and the general state of the economy. Higher hourly earnings can indicate a tight job market, as employers have to compete for workers and offer higher wages to attract and retain talent. On the other hand, stagnant or declining hourly earnings may indicate a weaker labor market, with less competition for workers and lower demand for labor.
The impact of average hourly earnings on the economy can be significant, depending on whether the number is higher or lower than expected.
if the average hourly earnings figure is lower than expected, it can be considered a negative indicator for the economy, as it indicates that workers earn less money for their work. This can lead to lower consumption spending, as workers have less income to spend on goods and services. This lower spending could, in turn, slow economic growth.
It is important to note that the impact of average hourly earnings on an economy can be influenced by a host of other factors, such as the general state of the economy, interest rates, government policies, and global economic conditions. Therefore, it is important to consider a range of factors when assessing the potential impact of this indicator on the economy.
What is the effect of average hourly earnings on the US dollar?
if the average hourly earnings figure is lower than expected, it could indicate that wage growth is slowing or stagnating, which could reduce inflationary pressures in the economy. This could lead to expectations that the Federal Reserve may need to keep interest rates low to support economic growth, which could reduce demand for the US dollar as investors seek higher returns elsewhere. Additionally, lower wage growth could lead to lower consumer spending, which could slow economic growth and potentially weaken the US dollar.
Who is responsible for issuing the average hourly earnings report?
Average hourly earnings data for the United States is released by the US Bureau of Labor Statistics (BLS), which is part of the US Department of Labor. The BLS produces a range of economic indicators, including employment, inflation and productivity data, that are widely followed by investors, economists and policymakers.
Release Date
It is released monthly, usually on the first Friday after the month ends
Next release date
Jun 7, 2024
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