Recent Updates

  • US: Composite Indexes (Sep)
  • Canada Regional: Employment Insurance by Province (Aug)
  • Canada: Employment Insurance (Aug)
  • US: Philadelphia FRB Mfg Business Outlook Survey (Oct)
  • South Africa: Wholesale & Motor Trade Sales, Mining Production and Sales, Building Plans Passed & Buildings Completed (Aug); Angola: CPI (Sep); Egypt: Suez Canal (Sep-Prelim); Morocco: Public Finance (Sep); Turkey: IIP (Aug); Algeria: PPI, IP (Q2)
  • Portugal: Trade in Services (Aug)
  • more updates...

Economy in Brief

Employment Cost Index Stable As Benefit Costs Slowed
by Tom Moeller July 29, 2005

The employment cost index for private industry workers rose the same 0.6% last quarter as during 1Q05 and contrasted to Consensus expectations for a 0.8% increase.

The 0.8% increase in benefit costs was the slowest since early 2002 and reflected slower growth in the service sector while benefit costs grew more rapidly in manufacturing. The y/y gain in the cost of health benefits fell to 6.3%, the slowest since 1999.

Wage and salary growth was stable at 0.6%. Wages account for roughly 70% of the compensation index.

Labor Market Developments in the United States and Canada since 2000 from the Federal Reserve Bank of New York is available here.

ECI- Private Industry Workers 2Q '05 1Q '05 Y/Y 2004 2003 2002
Compensation 0.6% 0.6% 3.2% 3.8% 4.0% 3.2%
  Wages & Salaries 0.6% 0.6% 2.4% 2.4% 3.0% 2.7%
  Benefit Costs 0.8% 1.1% 4.9% 6.9% 6.4% 4.7%
close
large image