Q4 Employment Cost Index
Updated 09-Mar-10 19:31 ET
Highlights
- Employment costs increased 0.5% in the fourth quarter of 2009 after increasing 0.4% in the third quarter.
- The consensus expected unemployment costs to rise at the same rate as the third quarter.
Key Factors
- Both wages and salaries and employee benefits rose 0.5%.
- Private industry compensation rose 0.4% in the fourth quarter after increasing 0.5% in the third quarter. State and local government compensation increased 0.5% in the fourth quarter, up from no growth in the third quarter.
- In private occupational employment, financial management employees saw the biggest gains in compensation with a 0.8% quarterly increase. In private industry employment, utility service provider compensation rose 1.4%.
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 to lower. The year-over-year total increase in the ECI is now below 2.0%. Weak overall demand in the economy should keep the ECI cost index on the current trend.
| Category |
Q4 |
Q3 |
Q2 |
Q1 |
Q4 |
| Quarterly Changes |
|
|
|
|
|
| Total ECI |
0.5% |
0.4% |
0.4% |
0.3% |
0.6% |
| Wages and Salaries |
0.5% |
0.4% |
0.4% |
0.3% |
0.5% |
| Benefits |
0.5% |
0.4% |
0.3% |
0.5% |
0.5% |
| Year/Year Changes |
|
|
|
|
|
| Total ECI |
1.5% |
1.5% |
1.8% |
2.1% |
2.6% |
| Wages and Salaries |
1.5% |
1.5% |
1.8% |
2.2% |
2.7% |
| Benefits |
1.5% |
1.6% |
1.8% |
2.0% |
2.2% |
