Global| Jan 29 2010U.S. Employment Cost Index Fell To Lowest On Record
by:Tom Moeller
|in:Economy in Brief
Summary
unemployment dragged the y/y change in the Employment Cost Index down to its lowest on record. (The series dates back to 1980). Overall the employment cost index for private industry workers rose 1.2% for the year which ended with a [...]
unemployment dragged
the y/y change in the Employment Cost Index down
to its lowest on record. (The series dates back to 1980). Overall the
employment cost index for private industry workers rose 1.2% for the
year which ended with a 0.4% rise during 4Q following upwardly revised
gains during the prior two quarters. The latest rise about matched
Consensus expectations.
Weaker growth in both in wages and
benefits pulled the overall index lower. Wages grew just 1.5% last year
which was exactly half the 2008 gain. By the end of 2009, however,
growth did improve modestly as the recession ended. For the year
management, professional & related workers saw their wages rise
just 1.1% after a after a 3.2% gain during 2008. 
Sales & office
worker wage gains also more-than-halved to 1.0%.
Total benefit costs in private sector increased just 1.2% for the year, a record low. In the management, professional & related businesses benefits grew just 0.7% but for production, transportation & materials handling industries growth held up and stable at 2.2% for the year. The cost of health benefits was an improved 4.4% in the latest 12 months.
The employment cost index figures are available in Haver's USECON database.
Myths about Budget Deficits from the American Enterprise Institute can be found here.
| ECI - Private Industry Workers (%) | 4Q '09 | 3Q '09 | 2Q '09 | 4Q Y/Y | 2009 | 2008 | 2007 |
|---|---|---|---|---|---|---|---|
| Compensation | 0.4 | 0.5 | 0.2 | 1.2 | 1.5 | 2.8 | 3.1 |
| Wages & Salaries | 0.5 | 0.5 | 0.2 | 1.3 | 1.5 | 3.0 | 3.4 |
| Benefit Costs | 0.4 | 0.3 | 0.2 | 1.0 | 1.2 | 2.6 | 2.4 |
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.
More Economy in Brief
