Economy
Employment Cost Index: Benefit Costs Rising Faster Than Wages
Published:
Last Updated:
Inflation in wages is not really present right now. A report for the third quarter showed that the Employment Cost Index slipped to +0.4% from +0.5% in the second quarter. Bloomberg was calling for a reading of +0.5% today, but that appears to be rounded up as the range was 0.4% to 0.5% for the third quarter. Dow Jones also had a consensus of 0.5% for the third quarter.
Source: Thinkstock
Wages and salaries fell to a 0.3% gain in the third quarter after a gain of 0.4% in the second quarter. The cost of benefits were up by 0.8% after a gain of 0.6% in the second quarter. On a year-ago basis, wages and salaries are up by 1.7% and the cost of benefits are up by 2.6%.
Today’s report is ahead of Friday’s nonfarm payrolls and unemployment, but as it is a third-quarter report, this is not going to have any impact on Friday’s report. This is also a low-impact report because so many reports on wages and unit labor costs have already been seen.
JON C. OGG
Essential Tips for Investing: Sponsored
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
