A measure of total employee compensation costs, including wages and salaries as well as benefits. The employment cost index (ECI) is the broadest measure of labor costs. Why Investors Care
| Released on 1/31/07 For Q4 2007 | |||||||||||||||||||
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Highlights
The employment cost index showed easing pressures, up a smaller-than-expected 0.8 percent in the fourth quarter vs. a 1.0 percent rise in the third quarter. Year-on-year, the ECI was up 3.3 percent in both the fourth and third quarters, up from a 3.0 percent rate in the second quarter and a 2.8 percent rise in the first quarter.
Wages & salaries have been steady, up 0.8 percent in the quarter for a year-on-year rate of 3.2 percent, but benefits have been showing pressure, up 1.1 percent in both the fourth and third quarters with the fourth-quarter year-on-year rate up 3 tenths to 3.6 percent.
A rebound in economic growth headlined by this morning's stronger-than-expected GDP report will help boost productivity and in turn ease pressure on labor costs. But labor costs, especially benefits, are favorite topics of Federal Reserve officials. Look for comments on wage pressures in today's FOMC statement.
The employment cost index for civilian workers rose a quarter-to-quarter 1.0 percent in the third quarter, up a little over the 0.9 percent rise in the second quarter and the fastest rise in more than two years. Rising labor costs have been a key concern for the Fed.
Employment cost index Consensus Forecast for Q4 06: 1.0 percent simple quarterly rate
Range: 0.9 to 1.5 percent simple quarterly rate
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The employment cost index measured total compensation costs which include wages and salaries and also benefits. Benefits include vacations, but the primary mover is health insurance premiums. |
| 2007 Release Schedule | ||||||||||
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