Global| Oct 28 2011U.S. Employment Cost Index Gain Accelerates With Greater Benefits
by:Tom Moeller
|in:Economy in Brief
Summary
The employment cost index for private industry workers rose 0.4% in Q3 for total compensation versus an unrevised 0.8% Q2 jump. The Q3 increase fell short of expectations for a 0.6% rise as compiled by Bloomberg. The four-quarter gain [...]
The employment cost index for private industry workers rose 0.4% in Q3 for total compensation versus an unrevised 0.8% Q2 jump. The Q3 increase fell short of expectations for a 0.6% rise as compiled by Bloomberg. The four-quarter gain of 2.2% remained near its highest since Q4'08.
Private sector wages & salaries grew a firm 0.4% (1.7% y/y). Amongst occupational groups, wages in financial activities increased 2.7% while professional & business services grew 2.1% y/y. Workers in the information sector posted a steady 1.8% y/y while those in education & health increased just 1.3%. In the factory sector wages rose an improved 1.8% but in education & heath they remained up a low 1.3%. In the government sector, state & local workers saw wage growth fall to a record low 1.0% y/y, down from the 2007 high of 3.6%.
Benefit costs ticked up just 0.1% and the four-quarter gain slipped to 3.4%. Yearly gains amongst industry groups fell broadly including a 4.3% y/y gain for factory workers and 3.3% for those in service occupations. Management, professional and related workers saw a 3.4% gain while state & local government workers increase of 2.4% was a record low.
The employment cost index figures are available in Haver's USECON database.
| ECI - Private Industry Workers (%) | Q3'11 | Q2'11 | Q1'11 | Q3 Y/Y | 2010 | 2009 | 2008 |
|---|---|---|---|---|---|---|---|
| Compensation | 0.4 | 0.8 | 0.5 | 2.2 | 1.9 | 1.4 | 2.9 |
| Wages & Salaries | 0.4 | 0.5 | 0.4 | 1.7 | 1.6 | 1.6 | 3.0 |
| Benefit Costs | 0.1 | 1.6 | 1.2 | 3.4 | 2.6 | 1.2 | 2.5 |
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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