U.S. Economy Contracts Sharply in Q1 2025: Key Factors and Implications
The U.S. economy contracted at an annualized rate of 0.5 percent in the first quarter of 2025, according to the third estimate (BEA).
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:
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- 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:
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- 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:
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- 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
