Updated: 28-Jul-23 09:29 ET
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Updated: 28-Jul-23 09:29 ET |
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Highlights
- The Q2 Employment Cost Index showed compensation costs for civilian workers increasing 1.0% (Briefing.com consensus 1.1%), seasonally adjusted, for the three-month period ending in June 2023 versus a 1.2% increase for the the three-month period ending in March 2023.
- Wages and salaries, which account for about 70% of compensation costs, increased 1.0% following a 1.2% increase for the three-month period ending in March 2023.
Key Factors
- Compensation costs for civilian workers rose 4.5% for the 12-month period ending in June 2023 versus 5.1% for the 12-month period ending in June 2022. Wages and salaries increased 4.6% for the 12-month period ending June 2023 versus 5.3% for June 2022. Benefit costs increased 4.2% for the 12-month period ending in June 2023 versus 4.8% for June 2022.
- Compensation costs for private industry workers rose 4.5% for the 12-month period ending in June 2023 versus 5.5% for the 12-month period ending in June 2022. Wages and salaries increased 4.6% for the 12-month period ending June 2023 versus 5.7% for June 2022. Benefit costs increased 3.9% for the 12-month period ending in June 2023 versus 5.3% for June 2022.
- Compensation costs for state and local government workers rose 4.9% for the 12-month period ending in June 2023 versus 3.4% for June 2022. Wages and salaries increased 4.7% for the 12-month period ending June 2023 versus 3.2% for June 2022. Benefit costs increased 5.2% for the 12-month period ending June 2023 versus 3.6% for June 2022.
Big Picture
- The key takeaway from the report is that it featured a deceleration in employment costs, which should be comforting for the market and the Fed.
Category |
Q2 |
Q1 |
Q4 |
Q3 |
Q2 |
Quarterly Changes |
|
|
|
|
|
Total ECI |
1.0% |
1.2% |
1.1% |
1.2% |
1.3% |
Wages and Salaries |
1.0% |
1.2% |
1.2% |
1.3% |
1.4% |
Benefits |
0.9% |
1.2% |
1.0% |
1.0% |
1.2% |
Year/Year Changes |
|
|
|
|
|
Total ECI |
4.5% |
4.8% |
5.1% |
5.0% |
5.1% |
Wages and Salaries |
4.6% |
5.0% |
5.1% |
5.1% |
5.3% |
Benefits |
4.2% |
4.5% |
4.9% |
4.9% |
4.8% |