Friday's monthly employment report was encouraging — but not just for job seekers. People who already have work could find something to celebrate too: Hourly wages rose at a decent pace.
That's a welcome change for employees who have seen only very, very modest raises in this economic recovery.
The Labor Department said average hourly wages rose by 9 cents an hour in February, up to $24.31. With that bump, workers are now making 2.2 percent more per hour than they were a year ago.
That may not sound like run-out-and-buy-caviar news, but at least the wage growth is exceeding the inflation rate of 1.6 percent. That means people who work now have a little more purchasing power, and that eventually could ripple out to retailers, car dealers and others.
The higher wages "will support a decent gain in consumer spending in March and April," Stuart Hoffman, chief economist for PNC Financial Services, said in his analysis.
The Two-Way
Jobless Rate Ticks Up, But Job Growth Is Better Than Expected