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Illustration: Aïda Amer/Axios

The U.S. economy added 225,000 new jobs last month and more workers came into the labor force. But data showed wages again failed to rise meaningfully, and there's reason to worry that growth may have peaked at this relatively low level.

What's happening: Average hourly earnings grew by 3.1% over the last 12 months, according to the January jobs report, and have stayed within the narrow range of 2.9% to 3.2% for much of the past year and a half.

By the numbers: The BLS employment cost index rose just 0.7% in the fourth quarter, with the increase in wages and benefits slowing to 2.7%, down from 2.9% in 2018. Other measures of pay and benefits also signal that the wage growth is plateauing or going in reverse.

  • The pace of wage and benefit increases also slowed last year from 2018's pace.
  • Wages and salaries have risen 2.9% in the past 12 months, down from 3.1% in 2018.
  • The latest reading of personal consumption expenditures, the Fed's preferred metric for inflation, showed just a 1.6% increase.

Why it matters: "Over the last 40 years, wage growth for typical American workers has been extraordinarily weak," researchers from the Brookings Institution noted in a recent paper.

  • Their data shows many Americans have not seen a significant raise in that time, with hourly wages at the middle of the income distribution having grown only 12% between 1979 and 2018 when adjusted for inflation.
  • Economic growth has slowed since 2018 and is expected to continue to do so, with the Congressional Budget Office predicting an average of 1.7% annual growth over the next 10 years.
  • When GDP growth slows, wages generally slow as well.

What's next: Policymakers have begun to refocus their attention on wage growth, but few concrete proposals have surfaced for how to achieve that goal.

  • Many Democrats, including presidential hopeful Bernie Sanders, have proposed raising the national minimum wage to $15 an hour, but research from Ernie Tedeschi, an economist and head of fiscal analysis at Evercore ISI, found that minimum wage increases only added "0.4 percentage points of upward pressure" to wage growth.
  • That's because a relatively small percentage of U.S. workers earn the minimum wage.

Go deeper: Unemployment fell to 50-year low in 2019 but wages stagnated

Go deeper

Rep. Rice demands Cuomo resign after 3rd woman accuses him of misconduct

New York Gov. Andrew Cuomo during a February news conference in New York City. Photo: Seth Wenig/POOL/AFP via Getty Images

Rep. Kathleen Rice (D-N.Y.) on Monday evening called for New York Gov. Andrew Cuomo (D) to resign, after a third woman accused him of inappropriate behavior.

Driving the news: Anna Ruch, a former member of the Obama administration and the 2020 Biden campaign, told the New York Times Monday that Cuomo asked to kiss her at a New York City wedding reception in September 2019.

Scoop: Inside the GOP's plan to retake the House

House Minority Leader Kevin McCarthy. Photo: Elijah Nouvelage/Bloomberg via Getty Images

House Republicans will reclaim their majority in 2022 by offering candidates who are women, minorities or veterans, a memo obtained by Axios says.

Why it matters: The document, drafted by a super PAC blessed by House Minority Leader Kevin McCarthy, names top Democrats to target — Jared Golden of Maine, Matt Cartwright of Pennsylvania and Ron Kind of Wisconsin — and the type of Republican candidates to beat them.

3 hours ago - Politics & Policy

Scoop: Trump talked out of early Ohio endorsement

Jane Timken at a 2017 Trump rally. Photo: Kyle Mazza/NurPhoto via Getty Images

Donald Trump had to be talked out of making an early endorsement in Ohio's 2022 U.S. Senate race, a sign of his eagerness to reengage politically, people familiar with the conversations tell Axios.

What we're hearing: The former president discussed endorsing former state GOP chair Jane Timken last week during a meeting at Mar-a-Lago with RNC Chairwoman Ronna McDaniel, but top advisers — including Donald Trump Jr. — urged him to wait.