Global| Apr 30 2013U.S. Employment Cost Index Moderates
by:Tom Moeller
|in:Economy in Brief
Summary
The employment cost index for private industry workers rose 0.3% (1.7% y/y) in Q1'13 versus a downwardly revised 0.4% increase in Q4. The rise compared to expectations for a 0.5% gain as compiled by Bloomberg. The latest y/y increase [...]
The employment cost index for private industry workers rose 0.3% (1.7% y/y) in Q1'13 versus a downwardly revised 0.4% increase in Q4. The rise compared to expectations for a 0.5% gain as compiled by Bloomberg. The latest y/y increase of 1.7% was the weakest since just after the recession.
A record 0.3% decline (+1.5% y/y) in benefit costs was the source of the latest moderation in total costs. Benefits amongst goods-producing workers rose 2.1% y/y but for service-producing industry workers they increased just 1.2% y/y. State & local government sector workers realized an improved 3.6% four-quarter rise in benefits.
The increase in private sector wages & salaries picked up q/q to 0.5% (1.7% y/y). Amongst industry groups, wages in the financial industry rose 2.3% over the last four quarters, professional & business services wages rose 2.0% y/y and education and health services rose 1.5% y/y). Wages in leisure & hospitality industries rose 1.0% y/y while state & local government workers also realized a 1.0% gain.
The employment cost index figures are available in Haver's USECON database.
| ECI- Private Industry Workers (%) | Q1'13 | Q4'12 | Q3'12 | Q1 Y/Y | 2012 | 2011 | 2010 |
|---|---|---|---|---|---|---|---|
| Compensation | 0.3 | 0.4 | 0.4 | 1.7 | 1.9 | 2.2 | 1.9 |
| Wages & Salaries | 0.5 | 0.3 | 0.4 | 1.7 | 1.8 | 1.7 | 1.6 |
| Benefit Costs | -0.3 | 0.6 | 0.6 | 1.5 | 2.3 | 3.4 | 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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