Updated: 30-Apr-24 09:15 ET
| Q1 Employment Cost Index |
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| Updated: 30-Apr-24 09:15 ET |
Highlights
- Employment costs for civilian workers increased 1.2% (Briefing.com consensus 1.0%), seasonally adjusted, for the 3-month period ending in March 2024, versus 0.9% for the 3-month period ending in December 2023.
- Wages and salaries increased 1.1% and benefit costs increased 1.1% from December 2023.
- On a year-over-year basis, compensation costs for civilian workers were up 4.2%.
Key Factors
- Compensation costs for civilian workers rose 4.2% for the 12-month period ending in March 2024 versus 4.8% for the 12-month period ending in March 2023. Wages and salaries increased 4.4% for the 12-month period ending in March 2024 versus 5.0% for the 12-month period ending in March 2023. Benefit costs increased 3.7% for the 12-month period ending in March 2024 versus 4.5% for the 12-month period ending in March 2023.
- Compensation costs for private industry workers rose 4.1% for the 12-month period ending in March 2024 versus 4.8% for the 12-month period ending in March 2023. Wages and salaries increased 4.3% for the 12-month period ending in March 2024 versus 5.1% for the 12-month period ending in March 2023. Benefit costs increased 3.6% for the 12-month period ending in in March 2024 versus 4.3% for the 12-month period ending in March 2023.
- Compensation costs for state and local government workers rose 4.8% for the 12-month period ending in March 2024 versus 4.9% for the 12-month period ending in March 2023. Wages and salaries increased 5.0% for the 12-month period ending in March 2024 versus 4.7% for the 12-month period ending in March 2023. Benefit costs increased 4.5% for the 12-month period ending in March 2024 versus 5.0% for the 12-month period ending in March 2023.
Big Picture
- The key takeaway from the report is that compensation costs accelerated from the fourth quarter, lending to concerns about general price inflation sticking above the Fed's 2% target for longer than expected.
| Category | Q1 | Q4 | Q3 | Q2 | Q1 |
| Quarterly Changes | |||||
| Total ECI | 1.2% | 0.9% | 1.0% | 1.0% | 1.2% |
| Wages and Salaries | 1.1% | 1.1% | 1.1% | 1.0% | 1.2% |
| Benefits | 1.1% | 0.7% | 0.9% | 0.9% | 1.2% |
| Year/Year Changes | |||||
| Total ECI | 4.2% | 4.2% | 4.3% | 4.5% | 4.8% |
| Wages and Salaries | 4.4% | 4.3% | 4.6% | 4.6% | 5.0% |
| Benefits | 3.7% | 3.8% | 4.1% | 4.2% | 4.5% |
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