Global| Oct 30 2009U.S. Employment Cost Index Rose Slightly Q/Q But Reaches A New Low Y/Y
by:Tom Moeller
|in:Economy in Brief
Summary
Employment compensation picked up slightly last quarter, but high unemployment dragged down the y/y change to its lowest on record. (The series dates back to 1980). The total employment cost index for private industry workers rose [...]
Employment
compensation picked up slightly last quarter, but high unemployment
dragged down the y/y change to its lowest on record. (The series dates
back to 1980). The total employment cost index for private industry
workers rose 0.5% during 3Q following gains of 0.2% during the prior
two quarters. The latest rise about matched Consensus
expectations.
Improved wage and salary growth provided most
of the "oomph" to last quarter's gain with a 0.5% rise. However, here
again, the y/y gain of 1.3% was a new record low. 
In the factory sector
wages rose just 1.2% y/y but in the education & health care
sectors wages rose a still-modest 1.8%. In the goods producing sector
wage growth fell to just 1.2% and in education & health
services they rose 1.8%.
Total benefit costs in private sector increased just 0.3% and the 1.0% y/y gain was a record low. What y/y strength there was was led by a 2.3% gain in production, transportation & materials handling industries and a 1.6% rise in services occupations. The cost of health benefits showed a stable 4.7% rise in the latest 12 months. · The employment cost index figures are available in Haver's USECON database.
Financial Intermediaries and Monetary Economics from the Federal Reserve Bank of New York can be found here.
| ECI - Private Industry Workers (%) | 3Q '09 | 2Q '09 | 1Q '09 | 3Q Y/Y | 2008 | 2007 | 2006 |
|---|---|---|---|---|---|---|---|
| Compensation | 0.5 | 0.2 | 0.2 | 1.3 | 2.8 | 3.1 | 2.9 |
| Wages & Salaries | 0.5 | 0.2 | 0.2 | 1.3 | 3.0 | 3.4 | 2.9 |
| Benefit Costs | 0.3 | 0.2 | 0.2 | 1.0 | 2.6 | 2.4 | 2.9 |
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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