Q2 Employment Cost Index
Updated 28-Jul-08 08:24 ET

Highlights
Key Factors
Big Picture
Employment costs are the major component of business costs. The trend in these data therefore have important implications for cost-push inflationary pressures and for profit margins. In recent quarters, the trend has been relatively steady. The year-over-year total increase in the ECI has been at 3.3% for the past few quarters, and has been drifting a bit lower the past couple of years. Weak overall demand in the economy should keep the ECI cost index on the current trend. At 3.3% this does not represent much inflationary pressure, as productivity gains of close to 2% leave unit labor costs rising at a modest pace near 1%. The major inflationary pressures are currently coming from commodity prices, not wages.
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| Category |
Q1 |
Q4 |
Q3 |
Q2 |
Q1 |
| Quarterly Changes |
|
|
|
|
|
| Total ECI |
0.7% |
0.8 |
0.8 |
0.9 |
0.8 |
| Wages/Salaries |
0.8 |
0.8 |
0.8 |
0.8 |
1.1 |
| Benefits |
0.6 |
0.8 |
0.8 |
1.3 |
0.1 |
| Year/Year Changes |
|
|
|
|
|
| Total ECI |
3.3% |
3.3 |
3.3 |
3.3 |
3.5 |
| Wages/Salaries |
3.2 |
3.4 |
3.3 |
3.4 |
3.6 |
| Benefits |
3.5 |
3.1 |
3.2 |
3.4 |
3.1 |