Updated: 27-Apr-18 09:36 ET
| Q1 Employment Cost Index |
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| Updated: 27-Apr-18 09:36 ET |
Highlights
- The first quarter employment cost index increased 0.8% (Briefing.com consensus +0.7) versus 0.6% in the fourth quarter. Wages and salaries, which comprise about 70% of compensation costs, increased 0.9%, while benefit costs jumped 0.7%.
Key Factors
- Compensation costs for civilian workers increased 2.7% for the 12-month period ending in March 2018 compared with a compensation costs increase of 2.4% in March 2017. Wages and salaries were up 2.7%, versus 2.5% for the 12-month period ending March 2017. Benefit costs increased 2.6%, versus 2.2% in March 2017.
- For private industry workers, compensation costs increased 2.8% year-over-year, versus 2.3% for the 12 months ending March 2017. Wages and salaries increased 2.9% year-over-year, versus 2.6% for the 12 months ending March 2017. Benefit costs increased 2.5%, versus 1.9% for the 12 months ending March 2017.
- For state and local government workers, compensation costs increased 2.2% for the 12-month period ending in March, versus 2.6% for the 12-month period ending in March 2017. Wages and salaries increased 1.8% year-over-year compared with 2.2% a year ago, while benefit costs increased 3.0%, versus 3.1% for the 12 months ending March 2017.
Big Picture
- The key takeaway from the report is that wages and salaries, and benefits, are trending higher. That will support the burgeoning inflation narrative and it will keep the Federal Reserve inclined to stay on its rate-hike path.
| Category | Q1 | Q4 | Q3 | Q2 | Q1 |
| Quarterly Changes | |||||
| Total ECI | 0.8% | 0.6% | 0.7% | 0.5% | 0.8% |
| Wages and Salaries | 0.9% | 0.5% | 0.7% | 0.5% | 0.8% |
| Benefits | 0.7% | 0.5% | 0.8% | 0.6% | 0.7% |
| Year/Year Changes | |||||
| Total ECI | 2.7% | 2.6% | 2.5% | 2.4% | 2.4% |
| Wages and Salaries | 2.7% | 2.5% | 2.5% | 2.3% | 2.5% |
| Benefits | 2.6% | 2.5% | 2.4% | 2.5% | 2.2% |
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