Global| Oct 31 2006Employment Cost Index Accelerated Further
by:Tom Moeller
|in:Economy in Brief
Summary
The employment cost index for private industry workers increased 0.9% last quarter, as expected, following the unrevised 0.8% increase during 2Q. Both increases were up from a 0.6% 1Q gain The gain raised the year to year increase to [...]
The employment cost index for private industry workers increased 0.9% last quarter, as expected, following the unrevised 0.8% increase during 2Q. Both increases were up from a 0.6% 1Q gain
The gain raised the year to year increase to 3.02%, the fastest since the second quarter of 2005.
Wages & salary growth moderated slightly to 0.8% following the quick 0.9% rise during 2Q. The year to year rise of 3.1% was the fastest since 2002. Factory sector wages grew a more moderate 0.3% (NSA, 2.3% y/y) but wages in the service-producing industries grew a firmer 1.0% (3.2% y/y), the fastest in three years.
Benefit costs in private industry grew 1.0% reflecting a quickened 1.0% (0.5% y/y) rise in the factory sector and a 1.0% (3.6% y/y) rise in service industries.
The 12-month gain in health insurance benefits eased to 4.9% from a 6.4% increase during 2005 and a 7.3% rise during 2004.
To view the latest release with all the industry detail visit BLS site.
| ECI- Private Industry Workers | 3Q '06 | 2Q '06 | Y/Y | 2005 | 2004 | 2003 |
|---|---|---|---|---|---|---|
| Compensation | 0.9% | 0.8% | 3.0% | 3.0% | 3.7% | 4.0% |
| Wages & Salaries | 0.8% | 0.9% | 3.1% | 2.5% | 2.7% | 3.0% |
| Benefit Costs | 1.0% | 0.7% | 2.9% | 4.0% | 6.6% | 6.5% |
Tom Moeller
AuthorMore in Author Profile »Prior to joining Haver Analytics in 2000, Mr. Moeller worked as the Economist at Chancellor Capital Management from 1985 to 1999. There, he developed comprehensive economic forecasts and interpreted economic data for equity and fixed income portfolio managers. Also at Chancellor, Mr. Moeller worked as an equity analyst and was responsible for researching and rating companies in the economically sensitive automobile and housing industries for investment in Chancellor’s equity portfolio. Prior to joining Chancellor, Mr. Moeller was an Economist at Citibank from 1979 to 1984. He also analyzed pricing behavior in the metals industry for the Council on Wage and Price Stability in Washington, D.C. In 1999, Mr. Moeller received the award for most accurate forecast from the Forecasters' Club of New York. From 1990 to 1992 he was President of the New York Association for Business Economists. Mr. Moeller earned an M.B.A. in Finance from Fordham University, where he graduated in 1987. He holds a Bachelor of Arts in Economics from George Washington University.
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