In November 2024, average hourly earnings for all employees on private nonfarm payrolls increased by 13 cents, or 0.4%, reaching $35.61. This growth matched October’s pace and exceeded market expectations of a 0.3% rise. The steady monthly increase highlights ongoing wage improvements in the labor market, reflecting strong demand for workers and consistent economic resilience.

Wage Growth for Production and Nonsupervisory Employees

For private-sector production and nonsupervisory employees, wages rose by 9 cents, or 0.3%, bringing the average hourly earnings to $30.57. While slightly slower than the overall wage growth, this increase underscores steady progress in earnings for workers in non-managerial roles. These figures suggest that wage gains are being distributed across different levels of the workforce, although at varying rates.

Annual Wage Gains Surpass Expectations

On an annual basis, average hourly earnings grew by 4% in November, maintaining the same rate as October and slightly beating forecasts of 3.9%. This year-over-year increase signals that wage growth remains robust despite broader economic uncertainties. Employers appear to be responding to inflationary pressures and labor shortages by continuing to raise wages, supporting workers’ purchasing power.

Outlook for Earnings Growth

The consistent pace of wage growth in recent months reflects the strength of the labor market, even as other economic indicators show mixed signals. While wage increases are a positive sign for employees, they may add to inflationary pressures, potentially influencing the Federal Reserve’s future policy decisions. As the economy heads into 2025, wage trends will remain a critical factor in assessing the health of the labor market and broader economic stability.