Global| Jan 31 2007Employment Cost Index Remained Firm
by:Tom Moeller
|in:Economy in Brief
Summary
The employment cost index for private industry workers increased 0.8% last quarter. That was less than the 1.0% rise expected by the Consensus, but during the latter part of 2006 the increases clearly accelerated versus the prior [...]
The employment cost index for private industry workers increased 0.8% last quarter. That was less than the 1.0% rise expected by the Consensus, but during the latter part of 2006 the increases clearly accelerated versus the prior year.
For the full year 2006, the ECI grew 3.1% versus a 3.0% gain during 2005.
Wages & salaries grew 0.7% after a 0.8% 3Q rise. The full year saw an acceleration to 3.1% growth from 2.5% in 2005 and that was the fastest since 2001. Factory sector wages grew 0.7% (NSA, 2.3% y/y) and wages in the service-producing industries also grew 0.7% (3.3% y/y), the fastest in three years.
Benefit costs in private industry sustained the prior strong 3Q gain and grew 1.0% reflecting a 1.1% (3.7% y/y) surge in service industries.
The 12-month gain in health insurance benefits was stable at 4.9% but that was down from a 6.4% increase during 2005, a 7.3% rise during 2004 and a 10.5% 2003 rise.
To view the latest release with all the industry detail visit BLS site.
| ECI- Private Industry Workers | 4Q '06 | 3Q '06 | Y/Y | 2006 | 2005 | 2004 |
|---|---|---|---|---|---|---|
| Compensation | 0.8% | 0.9% | 3.1% | 3.1% | 3.0% | 3.7% |
| Wages & Salaries | 0.7% | 0.8% | 3.1% | 3.1% | 2.5% | 2.7% |
| Benefit Costs | 1.0% | 1.0% | 3.1% | 3.1% | 4.0% | 6.6% |
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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