Updated: 10-Dec-25 09:16 ET
| Q3 Employment Cost Index |
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| Updated: 10-Dec-25 09:16 ET |
Highlights
- Compensation costs for civilian workers increased 0.8% (Briefing.com consensus: 0.9%), seasonally adjusted, for the 3-month period ending in September 2025. That was a moderation from the 0.9% increase registered in the second quarter.
Key Factors
- Compensation costs for civilian workers rose 3.5% for the 12-month period ending in September 2025 versus 3.9% for the 12-month period ending in September 2024. Wages and salaries increased 3.5% for the 12-month period ending in September 2025 versus 3.9% for the 12-month period ending in September 2024. Benefit costs increased 3.5% for the 12-month period ending in September 2025 versus 3.7% for the 12-month period ending in September 2024.
- Compensation costs for private industry workers rose 3.5% for the 12-month period ending in September 2025 versus 3.6% for the 12-month period ending in September 2024. Wages and salaries increased 3.6% for the 12-month period ending in September 2025 versus 3.8% for the 12-month period ending in September 2024. Benefit costs increased 3.5% for the 12-month period ending in September 2025 versus 3.3% for the 12-month period ending in September 2024.
- Compensation costs for state and local government workers rose 3.6% for the 12-month period ending in September 2025 versus 4.7% for the 12-month period ending in September 2024. Wages and salaries increased 3.5% for the 12-month period ending in September 2025 versus 4.6% for the 12-month period ending in September 2024. Benefit costs increased 3.8% for the 12-month period ending in September 2025 versus 4.8% for the 12-month period ending in September 2024.
Big Picture
- The key takeaway from the report is that it was an inflation-friendly report, evidenced by wages and salaries decelerating on a year-over-year basis for civilian workers (3.5% vs 3.9% a year ago), private industry (3.6% vs 3.8% a year ago), and state and local government workers (3.5% vs 4.6% a year ago).
| Category | Q3 | Q2 | Q1 | Q4 | Q3 |
| Quarterly Changes | |||||
| Total ECI | 0.8% | 0.9% | 0.9% | 0.9 | 0.8% |
| Wages and Salaries | 0.8% | 1.0% | 0.8% | 1.0% | 0.8% |
| Benefits | 0.8% | 0.7% | 1.2% | 0.8% | 0.8% |
| Year/Year Changes | |||||
| Total ECI | 3.5% | 3.6% | 3.6% | 3.8% | 3.9% |
| Wages and Salaries | 3.6% | 3.6% | 3.5% | 3.8% | 3.9% |
| Benefits | 3.5% | 3.5% | 3.8% | 3.6% | 3.7% |
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