Updated: 30-Apr-25 09:37 ET
| Q1 Employment Cost Index |
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| Updated: 30-Apr-25 09:37 ET |
Highlights
- The Q1 Employment Cost Index was up 0.9%, as expected, for the three-month period ending in March 2025, following a 0.9% increase for the three-month period ending in December 2024.
- Wages and salaries increased 0.8%, versus 1.0% for the prior quarter, and benefit costs jumped 1.2%, versus 0.8% for the prior quarter.
Key Factors
- Compensation costs for civilian workers rose 3.6% for the 12-month period ending in March 2025 versus 4.2% for the 12-month period ending in March 2024. Wages and salaries increased 3.5% for the 12-month period ending in March 2025 versus 4.4% for the 12-month period ending in March 2024. Benefit costs increased 3.8% for the 12-month period ending in March 2025 versus 3.7% for the 12-month period ending in March 2024.
- Compensation costs for private industry workers rose 3.4% for the 12-month period ending in March 2025 versus 4.1% for the 12-month period ending in March 2024. Wages and salaries increased 3.4% for the 12-month period ending in March 2025 versus 4.3% for the 12-month period ending in March 2024. Benefit costs increased 3.5% for the 12-month period ending in March 2025 versus 3.6% for the 12-month period ending in March 2024.
- Compensation costs for state and local government workers rose 4.3% for the 12-month period ending in March 2025 versus 4.8% for the 12-month period ending in March 2024. Wages and salaries increased 4.1% for the 12-month period ending in March 2025 versus 5.0% for the 12-month period ending in March 2024. Benefit costs increased 4.8% for the 12-month period ending in March 2025 versus 4.5% for the 12-month period ending in March 2024.
Big Picture
- T The key takeaway from the report is that employment costs have softened year-over-year, with compensation costs increasing 3.6% for the 12 months ending in March 2025, versus 4.2% for the 12 months ending in March 2024.
| Category | Q1 | Q4 | Q3 | Q2 | Q1 |
| Quarterly Changes | |||||
| Total ECI | 0.9% | 0.9 | 0.8% | 0.9% | 1.0% |
| Wages and Salaries | 0.8% | 1.0% | 0.8% | 0.9% | 1.1% |
| Benefits | 1.2% | 0.8% | 0.8% | 1.0% | 1.0% |
| Year/Year Changes | |||||
| Total ECI | 3.6% | 3.8% | 3.9% | 4.1% | 4.2% |
| Wages and Salaries | 3.5% | 3.8% | 3.9% | 4.2% | 4.4% |
| Benefits | 3.8% | 3.6% | 3.7% | 3.8% | 3.7% |
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