Global| Apr 29 2011U.S. Employment Cost Index Increases Y/Y
by:Tom Moeller
|in:Economy in Brief
Summary
The employment cost index for private industry workers rose 0.5% in Q1 for total compensation after an upwardly-revised 0.5% Q4'10 rise, initially reported as 0.4%. The Q1 increase matched expectations as tallied by Bloomberg. The [...]
The employment cost index for private industry workers rose 0.5% in
Q1 for total compensation after an upwardly-revised 0.5% Q4'10 rise,
initially reported as 0.4%. The Q1 increase matched expectations as
tallied by Bloomberg. The four-quarter gain of 2.0% was nearly its highest in two years.
Private sector wages & salaries rose 0.4% for the fourth straight quarter, up 1.6% y/y. Amongst occupational groups, wages of management and professional workers grew 1.8% y/y while those of sales & office workers actually decelerated modestly to 1.7%. In the factory sector wages rose an improved 1.8% but in services they decelerated to 1.6%. In the government sector, state & local workers saw wage growth remain at the record low 1.2% y/y, down from the 2007 high of 3.8%.
Benefit costs increased an improved 1.2% and the four-quarter gain rose to 2.9%, more-than-double the 2009 increase. Modest, yearly improvement amongst industry groups was widespread including a 4.2% y/y gain for factory workers and 2.9% for those in service occupations. State & local government workers realized a slightly improved 3.3% increase y/y.
The employment cost index figures are available in Haver's USECON database.
| ECI - Private Industry Workers(%) | Q1 '11 | Q4 '10 | Q3 '10 | Q1 Y/Y | 2010 | 2009 | 2008 |
|---|---|---|---|---|---|---|---|
| Compensation | 0.5 | 0.5 | 0.4 | 2.0 | 1.9 | 1.4 | 2.9 |
| Wages & Salaries | 0.4 | 0.4 | 0.4 | 1.6 | 1.6 | 1.6 | 3.0 |
| Benefit Costs | 1.2 | 0.5 | 0.6 | 2.9 | 2.6 | 1.2 | 2.6 |
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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