Updated: 30-Apr-26 10:09 ET
| Q1 Employment Cost Index |
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| Updated: 30-Apr-26 10:09 ET |
Highlights
- The Q1 Employment Cost Index increased 0.9% (Briefing.com consensus: 0.8%) on the heels of a 0.7% increase in Q4, with wages and salaries up 0.8% and benefit costs up 1.2%.
Key Factors
- Compensation costs for civilian workers rose 3.4% for the 12-month period ending in March 2026 versus 3.6% for the 12-month period ending in March 2025. Wages and salaries increased 3.4% for the 12-month period ending in March 2026 versus 3.5% for the 12-month period ending in March 2025. Benefit costs increased 3.6% for the 12-month period ending in March 2026 versus 3.8% for the 12-month period ending in March 2025.
- Compensation costs for private industry workers rose 3.4% for the 12-month period ending in March 2026 versus 3.4% for the 12-month period ending in March 2025. Wages and salaries increased 3.4% for the 12-month period ending in March 2026 versus 3.4% for the 12-month period ending in March 2025. Benefit costs increased 3.6% for the 12-month period ending in March 2026 versus 3.5% for the 12-month period ending in March 2025.
- Compensation costs for state and local government workers rose 3.5% for the 12-month period ending in March 2026 versus 4.3% for the 12-month period ending in March 2025. Wages and salaries increased 3.4% for the 12-month period ending in March 2026 versus 4.1% for the 12-month period ending in March 2025. Benefit costs increased 3.6% for the 12-month period ending in March 2026 versus 4.8% for the 12-month period ending in March 2025.
Big Picture
- The key takeaway from the report is that the increase in wages and salaries for civilian workers over the last 12 months (3.4%) is barely running ahead of inflation.
| Category | Q1 | Q4 | Q3 | Q2 | Q1 |
| Quarterly Changes | |||||
| Total ECI | 0.9% | 0.7% | 0.8% | 0.9% | 0.9% |
| Wages and Salaries | 0.8% | 0.7% | 0.8% | 1.0% | 0.8% |
| Benefits | 1.2% | 0.8% | 0.8% | 0.7% | 1.1% |
| Year/Year Changes | |||||
| Total ECI | 3.4% | 3.4% | 3.5% | 3.6% | 3.6% |
| Wages and Salaries | 3.4% | 3.3% | 3.5% | 3.6% | 3.5% |
| Benefits | 3.6% | 3.4% | 3.5% | 3.5% | 3.8% |
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