Updated: 28-Jul-23 09:29 ET
| Q2 Employment Cost Index |
 |
|
| Updated: 28-Jul-23 09:29 ET |
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% |
|
|