Average Hourly Earnings is a macroeconomic indicator that measures the average change in hourly wages for workers. The indicator is published in two main interpretations: the absolute value and the percentage change compared to the previous period or the average hourly or weekly wage.
The macroeconomic indicator Average Hourly Earnings is considered an inflation indicator, which relates to the increase in the cost of labor and the corresponding expected future level of consumer spending by the country’s workforce.
How to Use the Average Hourly Earnings Indicator on Forex?
This indicator is very important for the market. When analysts predict an increase in interest rates by the Federal Reserve in the near future, an increase in Average Hourly Earnings can lead to an increase in the US dollar‘s exchange rate.
Moreover, an increase in wages, and therefore the Average Hourly Earnings index, which exceeds the growth of the manufacturing sector, indicates a possible rise in prices in the near future, which serves as confirmation of the Federal Reserve’s readiness to raise interest rates.
When Is the Average Hourly Earnings Indicator Published?
- Publication Date: Monthly, every first Friday at 16:30 MSK;
- Source: Bureau of Labor Statistics, Department of Labor (U.S.);
- Website: www.bls.gov/news.release/empsit.toc.htm;
- Significance: Medium.
Key Macroeconomic Indicators in the U.S.
- Nonfarm Payrolls (NP, NFP)
- Change in Employment in the Non-Farm Sector from ADP (ADP Nonfarm Employment Change)
- Retail Sales in the U.S. (Retail Sales)
FAQ
What is Average Hourly Earnings?
Average Hourly Earnings is a macroeconomic indicator that measures the average change in hourly wages for workers.
When is Average Hourly Earnings released?
Average Hourly Earnings is released monthly, every first Friday at 16:30 MSK.
How does Average Hourly Earnings affect the forex market?
An increase in Average Hourly Earnings can lead to an increase in the US dollar’s exchange rate, especially if it signals potential inflation and the possibility of interest rate hikes by the Federal Reserve.
