Updated: 28-Oct-22 09:37 ET
| Q3 Employment Cost Index |
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| Updated: 28-Oct-22 09:37 ET |
Highlights
- The Q3 Employment Cost Index was up 1.2% (Briefing.com consensus 1.2%) on a seasonally adjusted basis for the three-month period ending in September. That followed a 1.3% increase for Q2.
- Wages and salaries, which account for about 70% of compensation costs, increased 1.3% and benefit costs increased 1.0% from June 2022.
Key Factors
- Total compensation costs for civilian workers increased 5.0% for the 12-month period ending in September 2022 versus 3.7% in September 2021. Wages and salaries rose 5.1% for the 12-month period ending in September 2022 versus 4.2% for September 2021. Benefit costs rose 4.9% for the 12-month period ending in September 2022 versus 2.5% for September 2021.
- Compensation costs for private industry workers rose 5.2% for the 12-month period ending in September 2022 versus 4.1% in September 2021. Wages and salaries increased 5.2% for the 12-month period ending September 2022 versus 4.6% for September 2021. Benefit costs increased 5.0% for the 12-month period ending in September 2022 versus 2.6% for September 2021.
- Compensation costs for state and local government workers rose 4.6% for the 12-month period ending in September 2022 versus 2.3% for September 2021. Wages and salaries increased 4.4% for the 12-month period ending September 2022 versus 2.4% for September 2021. Benefit costs increased 5.0% for the 12-month period ending September 2022 versus 2.1% for September 2021.
Big Picture
- The key takeaway from the report is that the yr/yr compensation cost rate was reduced by just ten basis points from the Q2 reading (to 5.0% from 5.1%), so the Fed is unlikely to reconsider its aggressive rate hike stance based solely on this report.
| Category | Q3 | Q2 | Q1 | Q4 | Q3 |
| Quarterly Changes | |||||
| Total ECI | 1.2% | 1.3% | 1.4% | 1.0% | 1.2% |
| Wages and Salaries | 1.3% | 1.4% | 1.2% | 1.0% | 1.5% |
| Benefits | 1.0% | 1.2% | 1.8% | 0.9% | 0.8% |
| Year/Year Changes | |||||
| Total ECI | 5.0% | 5.1% | 4.5% | 4.0% | 3.7% |
| Wages and Salaries | 5.1% | 5.3% | 4.7% | 4.5% | 4.2% |
| Benefits | 4.9% | 4.8% | 4.1% | 2.8% | 2.5% |
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