Average Hourly Earnings

What is it and why does it matter?

The average hourly earnings are the reported aggregate weekly payroll divided by the reported aggregate weekly hours. Earnings may change for a number of reasons, such as, overtime premiums, late-shift work, shortage of labor, and/or changes to payroll structure (e.g., fewer high-wage/low-wage employees). Average hourly earnings give us an idea of the current rate at which employees are being paid.