Gain in the Employment Cost Index Accelerated
by:Tom Moeller
|in:Economy in Brief
Summary
The employment cost index for private industry workers increased 0.8% during 2Q, about as expected, after an unrevised 0.6% 1Q increase. The 2Q increase was the fastest in over a year. Wages & salaries grew at the quickest pace (0.9%) [...]
The employment cost index for private industry workers increased 0.8% during 2Q, about as expected, after an unrevised 0.6% 1Q increase.
The 2Q increase was the fastest in over a year.
Wages & salaries grew at the quickest pace (0.9%) since late 2003 as factory sector wages grew 0.8% (NSA, 2.7% y/y). That was the best quarterly gain since 3Q04. Service-producing industries' wage also grew a firm 0.8% (2.7% y/y) which was stable with 1Q.
Benefit costs grew 0.7% after a depressed 1Q increase.
The 12-month gain in health insurance benefits picked up slightly to 5.2%.
To view the latest release with all the industry detail visit BLS site.
ECI- Private Industry Workers | 2Q '06 | 1Q '06 | Y/Y | 2005 | 2004 | 2003 |
---|---|---|---|---|---|---|
Compensation | 0.8% | 0.6% | 2.8% | 3.0% | 3.7% | 4.0% |
Wages & Salaries | 0.9% | 0.7% | 2.9% | 2.5% | 2.7% | 3.0% |
Benefit Costs | 0.7% | 0.4% | 2.7% | 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.