Updated: 10-Feb-26 09:27 ET
| Q4 Employment Cost Index |
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| Updated: 10-Feb-26 09:27 ET |
Highlights
- The Q4 Employment Cost Index increased 0.7% (Briefing.com consensus: 0.8%), seasonally adjusted, for the three-month period ending in December 2025, following a 0.8% increase for the three-month period ending in September 2025.
- Wages and salaries increased 0.7%, versus 0.8% in Q3.
- Benefit costs increased 0.7%, versus 0.8% in Q3.
Key Factors
- Compensation costs for civilian workers rose 3.4% for the 12-month period ending in December 2025 versus 3.8% for the 12-month period ending in December 2024. Wages and salaries increased 3.3% for the 12-month period ending in December 2025 versus 3.8% for the 12-month period ending in December 2024. Benefit costs increased 3.4% for the 12-month period ending in December 2025 versus 3.6% for the 12-month period ending in December 2024.
- Compensation costs for private industry workers rose 3.4% for the 12-month period ending in December 2025 versus 3.6% for the 12-month period ending in December 2024. Wages and salaries increased 3.3% for the 12-month period ending in December 2025 versus 3.7% for the 12-month period ending in December 2024. Benefit costs increased 3.4% for the 12-month period ending in December 2025 versus 3.3% for the 12-month period ending in December 2024.
- Compensation costs for state and local government workers rose 3.4% for the 12-month period ending in December 2025 versus 4.7% for the 12-month period ending in December 2024. Wages and salaries increased 3.5% for the 12-month period ending in December 2025 versus 4.5% for the 12-month period ending in December 2024. Benefit costs increased 3.5% for the 12-month period ending in December 2025 versus 4.9% for the 12-month period ending in December 2024.
Big Picture
- The key takeaway from the report is that there was some moderation in employment costs on a year-over-year basis that will help temper inflation worries.
| Category | Q4 | Q3 | Q2 | Q1 | Q4 |
| Quarterly Changes | |||||
| Total ECI | 0.7% | 0.8% | 0.9% | 0.9% | 0.9 |
| Wages and Salaries | 0.7% | 0.8% | 1.0% | 0.8% | 1.0% |
| Benefits | 0.7% | 0.8% | 0.7% | 1.2% | 0.8% |
| Year/Year Changes | |||||
| Total ECI | 3.4% | 3.5% | 3.6% | 3.6% | 3.8% |
| Wages and Salaries | 3.3% | 3.5% | 3.6% | 3.5% | 3.8% |
| Benefits | 3.4% | 3.5% | 3.5% | 3.8% | 3.6% |
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