U.S. Wage Growth Trends in June 2024: Key Insights

Here's a breakdown of the wage trends based on the June 2024 report from the U.S. Bureau of Labor Statistics:

Average Hourly Earnings Increase:

• • Average hourly earnings for all U.S. private nonfarm employees rose by 10 cents, or 0.3%, to $35.00 in June 2024.
  • This follows a 0.4% increase in the previous month but falls slightly below market expectations, which anticipated a 0.4% gain.

Earnings for Production and Nonsupervisory Employees:

• • For private-sector production and nonsupervisory employees, average hourly earnings also increased by 10 cents, or 0.3%, reaching $30.05 in June.

Annual Wage Growth:

• • Over the past 12 months, average hourly earnings have grown by 3.9%, marking the slowest increase since June 2021.
  • This growth rate follows a 4% advance in May, aligning closely with market estimates.

Analysis and Implications

The June 2024 wage report indicates a modest increase in average hourly earnings across both all employees and production/nonsupervisory roles. While the figures show a slightly lower-than-expected uptick, the overall trend reflects ongoing stability in wage growth despite variations month-to-month.

Source: U.S. Bureau of Labor Statistics

Economic Context