Global| Jan 31 2012U.S. Employment Cost Index Posts Stable Increase
by:Tom Moeller
|in:Economy in Brief
Summary
Labor compensation is growing at a steady rate. The employment cost index for private industry workers rose 0.4% in Q4 for total compensation versus an unrevised 0.4% Q2 rise. The Q4 increase fell short of expectations for a 0.4% rise [...]
Labor compensation is growing at a steady rate. The employment cost index for private industry
workers rose 0.4% in Q4 for total compensation versus an unrevised 0.4%
Q2 rise. The Q4 increase fell short of expectations for a 0.4% rise as compiled by Bloomberg. The four-quarter gain of 2.1% remained near its
highest since Q4'08.
Private sector wages & salaries grew a stable 0.4% and 1.7% y/y. Amongst industry groups, wages in retail trade rose 2.1% Q4/Q4, professional & business services grew 1.8% while wages in information increased 1.8% as well. Wages in the factory sector also rose 1.8%, while education & health increased 1.5%. At the low end of the scale, wages in construction grew 1.2%, leisure & hospitality increased 0.8% while state & local workers saw wage growth fall to a record low 0.9% y/y, down from the 2007 high of 3.6%.
Benefit costs rose an increased 0.7% versus Q3 while the four-quarter gain improved to 3.6%. By industry, benefits in goods-producing rose 4.0% and 3.4% in services. Benefits for state & local government workers lagged at a record-low 2.1% y/y. By occupation, production, transportation and material moving grew the quickest at 4.3%. For management, professional and related workers benefits grew 3.6% while those in service occupations rose 2.6%.
The employment cost index figures are available in Haver's USECON database.
Are Consumers Eager To Borrow? from the Federal Reserve Bank of Cleveland is available here.
| ECI - Private Industry Workers (%) | Q4'11 | Q3'11 | Q2'11 | Q4 Y/Y | 2011 | 2010 | 2009 |
|---|---|---|---|---|---|---|---|
| Compensation | 0.4 | 0.4 | 0.8 | 2.1 | 2.2 | 1.9 | 1.4 |
| Wages & Salaries | 0.4 | 0.4 | 0.5 | 1.7 | 1.7 | 1.6 | 1.6 |
| Benefit Costs | 0.7 | 0.1 | 1.6 | 3.6 | 3.5 | 2.6 | 1.2 |
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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