The pace of wage growth is one of the best indicators of economic health. But wage growth can be measured using a number of different methods. Each method has strengths and weaknesses, and each method tells a slightly different story about how the economy, and the labor market, is doing.
We speak with economist Ernie Tedeschi, who suggests three different measures of wage growth that we should all be tracking. In chart form, they are:
1. Average Hourly Earnings for all private sector workers:
2. Employment Cost Index: the total compensation for private industry workers in all industries and occupations:
3. The Atlanta Fed Wage Growth Tracker by full-time or part-time over two decades: