Q3 Employment Cost Index
Updated: 10-Jan-26 09:29 ET

Highlights
  • Compensation costs for civilian workers increased 0.8% (Briefing.com consensus: 0.9%), seasonally adjusted, for the 3-month period ending in September 2025. That was a moderation from the 0.9% increase registered in the second quarter.
Key Factors
  • Compensation costs for civilian workers rose 3.5% for the 12-month period ending in September 2025 versus 3.9% for the 12-month period ending in September 2024. Wages and salaries increased 3.5% for the 12-month period ending in September 2025 versus 3.9% for the 12-month period ending in September 2024. Benefit costs increased 3.5% for the 12-month period ending in September 2025 versus 3.7% for the 12-month period ending in September 2024.
  • Compensation costs for private industry workers rose 3.5% for the 12-month period ending in September 2025 versus 3.6% for the 12-month period ending in September 2024. Wages and salaries increased 3.6% for the 12-month period ending in September 2025 versus 3.8% for the 12-month period ending in September 2024. Benefit costs increased 3.5% for the 12-month period ending in September 2025 versus 3.3% for the 12-month period ending in September 2024.
  • Compensation costs for state and local government workers rose 3.6% for the 12-month period ending in September 2025 versus 4.7% for the 12-month period ending in September 2024. Wages and salaries increased 3.5% for the 12-month period ending in September 2025 versus 4.6% for the 12-month period ending in September 2024. Benefit costs increased 3.8% for the 12-month period ending in September 2025 versus 4.8% for the 12-month period ending in September 2024.
Big Picture
  • The key takeaway from the report is that it was an inflation-friendly report, evidenced by wages and salaries decelerating on a year-over-year basis for civilian workers (3.5% vs 3.9% a year ago), private industry (3.6% vs 3.8% a year ago), and state and local government workers (3.5% vs 4.6% a year ago).
Category Q3 Q2 Q1 Q4 Q3
Quarterly Changes




Total ECI 0.8% 0.9% 0.9% 0.9 0.8%
Wages and Salaries 0.8% 1.0% 0.8% 1.0% 0.8%
Benefits 0.8% 0.7% 1.2% 0.8% 0.8%
Year/Year Changes




Total ECI 3.5% 3.6% 3.6% 3.8% 3.9%
Wages and Salaries 3.6% 3.6% 3.5% 3.8% 3.9%
Benefits 3.5% 3.5% 3.8% 3.6% 3.7%
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