Global| Jul 31 2014U.S. Employment Cost Index Jumps in Q2
by:Tom Moeller
|in:Economy in Brief
Summary
The employment cost index for private industry workers surged 0.8% (2.1% y/y) in Q2'14, following an unrevised 0.3% rise in Q1. The increase was the largest since Q4 2007 and surpassed expectations for a 0.5% rise in the Action [...]
The employment cost index for private industry workers surged 0.8% (2.1% y/y) in Q2'14, following an unrevised 0.3% rise in Q1. The increase was the largest since Q4 2007 and surpassed expectations for a 0.5% rise in the Action Economics Forecast Survey.
Wages & salaries of private industry workers increased 0.8% (1.9% y/y) last quarter after a 0.2% Q1 rise. The 1.1% increase (1.7% y/y) in professional & business services wages led the rise while information industry wages rose 0.9% (1.6% y/y). In the factory sector, wages rose 0.8% (2.2% y/y). Education workers wages rose 0.5% (1.4% y/y) and retail trade wages also gained 0.5% (1.6% y/y). Leisure & hospitality industry workers wages advanced 0.3% (1.4% y/y) while financial activities workers wages nudged 0.2% higher (2.0% y/y).
Benefit costs surged 1.1% (2.4% y/y) after a modest 0.3% Q1 gain. Management & professional benefits jumped 1.2% (2.5% y/y) as did sales & office workers benefits (2.7% y/y). Production & transportation benefits gained 0.2% (1.5% y/y) while factory sector benefits bumped 0.1% higher (1.9% y/y).
Total compensation for state & local government workers rose 0.5% (2.0% y/y), the same as in Q1. That reflected a 0.9% rise (2.8% y/y) for public administration workers, a 0.6% rise (1.5% y/y) for health care & social assistance employees and a 0.4% gain (1.8% y/y) in education services.
The employment cost index figures are available in Haver's USECON database. Consensus estimates come from the Action Economics survey, carried in Haver's AS1REPNA database.
| ECI- Private Industry Workers (%) | Q2'14 | Q1'14 | Q4'13 | Q2 Y/Y | 2013 | 2012 | 2011 |
|---|---|---|---|---|---|---|---|
| Compensation | 0.8 | 0.3 | 0.5 | 2.1 | 1.9 | 2.0 | 2.1 |
| Wages & Salaries | 0.8 | 0.2 | 0.5 | 1.9 | 1.9 | 1.8 | 1.6 |
| Benefit Costs | 1.1 | 0.3 | 0.4 | 2.4 | 1.9 | 2.2 | 3.5 |
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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