Average Hourly Earnings Growth vs S&P 500 Price-to-Earnings Ratio (Forward)
Average Hourly Earnings Growth is currently 3.8% (down -0.2%). S&P 500 Price-to-Earnings Ratio (Forward) is currently 20.3x (down -1.20).
| Metric | Average Hourly Earnings Growth | S&P 500 Price-to-Earnings Ratio (Forward) |
|---|---|---|
| Current value | 3.8% | 20.3x |
| Previous reading | 4% | 21.5x |
| Change | -0.2% | -1.20 |
| Trend | down | down |
| Frequency | Monthly | Weekly |
| Source | Bureau of Labor Statistics | S&P Global |
| Last updated | 2026-04-04 | 2026-04-04 |
| Category | employment | growth |
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 S&P 500 Price-to-Earnings Ratio (Forward) measures
The forward price-to-earnings ratio measures the S&P 500 index price relative to expected earnings per share over the next 12 months. It is the most widely used valuation metric for the U.S. stock market.
The S&P 500 forward P/E at 20.3x has declined from its recent highs but remains above the 25-year average of approximately 16.5x. Markets are pricing in solid earnings growth but are no longer at 'euphoric' valuations. For executives evaluating M&A, stock compensation, or capital market activity, current valuations suggest a market that is fairly valued to modestly expensive — not cheap, but not at bubble levels either.
Frequently asked
Average Hourly Earnings Growth is currently 3.8%, down -0.2% from the previous reading. Source: Bureau of Labor Statistics, updated monthly.
S&P 500 Price-to-Earnings Ratio (Forward) is currently 20.3x, down -1.20 from the previous reading. Source: S&P Global, updated weekly.
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 The S&P 500 forward P/E at 20.3x has declined from its recent highs but remains above the 25-year average of approximately 16.5x. Markets are pricing in solid earnings growth but are no longer at 'eup