US employment cost index for Q3 +0.8% vs +0.8% expected

Prior quarter was +0.9%Employment benefits +0.9% vs +1.0% prior quarterEmployment wages +0.7% vs +0.9% prior quarterThe US Employment Cost Index (ECI) increased by 0.8% q/q in the third quarter, with both wages and salaries and benefit costs contributing to the increase.

Wages and salaries rose 0.7%, while benefit costs increased 0.9% compared with the previous quarter.On an annual basis, total compensation costs for civilian workers increased by 3.4%, with wages and salaries rising 3.1% and benefit costs accelerating by 3.9%.

The figures show that labour cost pressures remain relatively contained, although benefits continue to increase faster than wages.Looking at private industry, compensation costs also increased by 0.8% q/q and 3.4% y/y.

However, inflation-adjusted wages and salaries declined by 0.6% over the year, as nominal wage growth is still failing to keep pace with consumer price increases. The continued gap between nominal and inflation-adjusted wage growth also highlights the pressure households are facing from higher living costs.For background, the Employment Cost Index (ECI) is a quarterly report from the Bureau of Labor Statistics (BLS) that measures the change in the total cost of labor for businesses.

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