Average Hourly Earnings Growth vs M2 Money Supply (Year-over-Year Change)
Average Hourly Earnings Growth is currently 3.8% (down -0.2%). M2 Money Supply (Year-over-Year Change) is currently 3.9% (up +0.2%).
| Metric | Average Hourly Earnings Growth | M2 Money Supply (Year-over-Year Change) |
|---|---|---|
| Current value | 3.8% | 3.9% |
| Previous reading | 4% | 3.7% |
| Change | -0.2% | +0.2% |
| Trend | down | up |
| Frequency | Monthly | Monthly |
| Source | Bureau of Labor Statistics | Federal Reserve |
| Last updated | 2026-04-04 | 2026-03-25 |
| Category | employment | money |
What Average Hourly Earnings Growth measures
Average hourly earnings measures the year-over-year percentage change in wages for all private-sector employees. It is a key indicator of labor cost pressures and consumer spending power.
Wage growth at 3.8% year-over-year outpaces current inflation, meaning workers are gaining real purchasing power. For executives, this signals continued pressure on labor budgets — compensation packages must grow to retain talent. However, wage growth moderating from 4%+ suggests the worst of the post-pandemic wage spiral may be easing.
What M2 Money Supply (Year-over-Year Change) measures
M2 is a measure of the money supply that includes cash, checking deposits, savings deposits, money market funds, and small time deposits. Year-over-year changes in M2 are a leading indicator of inflation and economic activity.
M2 growth has recovered to 3.9% year-over-year after an unprecedented contraction in 2023 (the first in modern history). The normalization of money supply growth supports economic activity without being excessively inflationary. For executives, moderate M2 growth (3-5%) is consistent with a healthy economy — it means enough liquidity to support business activity without fueling the kind of excess that drove 2021-2022 inflation.
Frequently asked
Average Hourly Earnings Growth is currently 3.8%, down -0.2% from the previous reading. Source: Bureau of Labor Statistics, updated monthly.
M2 Money Supply (Year-over-Year Change) is currently 3.9%, up +0.2% from the previous reading. Source: Federal Reserve, updated monthly.
Wage growth at 3.8% year-over-year outpaces current inflation, meaning workers are gaining real purchasing power. For executives, this signals continued pressure on labor budgets — compensation packag M2 growth has recovered to 3.9% year-over-year after an unprecedented contraction in 2023 (the first in modern history). The normalization of money supply growth supports economic activity without bei