There have been few signs of wage growth even as unemployment has fallen and the economy has expanded. But Friday's report suggested wages may finally be on the rise, though they are, as of now, only keeping up with inflation.

Worker pay grew 2.9 percent in the past year — near the target of 3 percent — the fastest growth since the recession ended in June 2009, and a positive sign that paychecks may get a boost after years of stagnation.

ADVERTISEMENT

A rise is wages has been a major missing element of a more than nine-year economic recovery, confounding economists.

"It’s been surprising that the length of the jobs recovery and the low level of the unemployment rate have not boosted wage gains more strongly, but the August figures may be a sign of accelerating wage gains," said David Berson, chief economist at Nationwide.

Economists have been forecasting that businesses would raise wages to get the employees they wanted in a tightening labor market.

Robert Frick, a corporate economist with Navy Federal Credit Union, said that "wages have been lagging for months given the late stage of the expansion, and they're still nullified by the increase in inflation."

"At this point in previous expansions we've seen wages rising at a 3.5 percent or even above a 4 percent rate," Frick said.

But he said with strong jobs growth and rising wages "we could be entering that sweet spot for workers that's typical at an expansion's peak."

He added that the good news is that the bulk of the wage gains are coming for workers who earn lower wages, which is a good sign, since pay raises have been slow in those areas during the expansion.

The rise in wages also is a sign that employers want to keep their workers in a tightening labor market where it's already hard to find skilled labor across pay grades.

In the April-June quarter, the economy expanded at a 4.2 percent annualized rate, the best pace in four years, yet wages have remained flat.

But even the latest increase only just offsets rising inflation, each having risen 2.9 percent in the past year.

Congressional Democrats have routinely hammered Republicans on the lack of wage growth.

Friday's jobs report showed the economy added 201,000 jobs, but Pelosi said that workers' wages are only increasing at about the same pace as inflation.

“August’s jobs report shows that the soaring cost of living for families continues to lead to stagnant real wage growth for workers," Pelosi said in a statement.

“While the wealthy and well-connected fill their pockets, hard-working men and women are struggling to keep up with everyday needs that are getting more and more expensive.

“Republicans came to Congress to make reforms that would grow the economy and get more Americans on the pathway to success," he said in a statement on the jobs report.

"Our pro-growth, pro-jobs agenda is delivering those results."

President Trump has taken full credit for the strong economy, touting the jobs numbers and wage growth during remarks in Fargo, N.D.

This week, Kevin Hassett, head of the White House's Council of Economic Advisers (CEA), released a report arguing that the government's numbers don't include healthcare and other benefits that would more accurately calculate wage growth.