Global| Jul 29 2005Employment Cost Index Stable As Benefit Costs Slowed
by:Tom Moeller
|in:Economy in Brief
Summary
The employment cost index for private industry workers rose the same 0.6% last quarter as during 1Q05 and contrasted to Consensus expectations for a 0.8% increase. The 0.8% increase in benefit costs was the slowest since early 2002 [...]
The employment cost index for private industry workers rose the same 0.6% last quarter as during 1Q05 and contrasted to Consensus expectations for a 0.8% increase.
The 0.8% increase in benefit costs was the slowest since early 2002 and reflected slower growth in the service sector while benefit costs grew more rapidly in manufacturing. The y/y gain in the cost of health benefits fell to 6.3%, the slowest since 1999.
Wage and salary growth was stable at 0.6%. Wages account for roughly 70% of the compensation index.
Labor Market Developments in the United States and Canada since 2000 from the Federal Reserve Bank of New York is available here.
| ECI- Private Industry Workers | 2Q '05 | 1Q '05 | Y/Y | 2004 | 2003 | 2002 |
|---|---|---|---|---|---|---|
| Compensation | 0.6% | 0.6% | 3.2% | 3.8% | 4.0% | 3.2% |
| Wages & Salaries | 0.6% | 0.6% | 2.4% | 2.4% | 3.0% | 2.7% |
| Benefit Costs | 0.8% | 1.1% | 4.9% | 6.9% | 6.4% | 4.7% |
Tom Moeller
AuthorMore in Author Profile »Prior to joining Haver Analytics in 2000, Mr. Moeller worked as the Economist at Chancellor Capital Management from 1985 to 1999. There, he developed comprehensive economic forecasts and interpreted economic data for equity and fixed income portfolio managers. Also at Chancellor, Mr. Moeller worked as an equity analyst and was responsible for researching and rating companies in the economically sensitive automobile and housing industries for investment in Chancellor’s equity portfolio. Prior to joining Chancellor, Mr. Moeller was an Economist at Citibank from 1979 to 1984. He also analyzed pricing behavior in the metals industry for the Council on Wage and Price Stability in Washington, D.C. In 1999, Mr. Moeller received the award for most accurate forecast from the Forecasters' Club of New York. From 1990 to 1992 he was President of the New York Association for Business Economists. Mr. Moeller earned an M.B.A. in Finance from Fordham University, where he graduated in 1987. He holds a Bachelor of Arts in Economics from George Washington University.
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