Global| Jul 28 2017U.S. Employment Cost Index Decelerates
by:Tom Moeller
|in:Economy in Brief
Summary
The employment cost index for civilian workers rose 0.5% (2.4% y/y) during Q2'17, down from a 0.8% increase in Q1'17. A 0.6% rise had been expected in the Action Economics Forecast Survey. Wages and salaries also increased 0.5% (2.3% [...]
The employment cost index for civilian workers rose 0.5% (2.4% y/y) during Q2'17, down from a 0.8% increase in Q1'17. A 0.6% rise had been expected in the Action Economics Forecast Survey. Wages and salaries also increased 0.5% (2.3% y/y) after a 0.8% rise. Benefits were up 0.6% (2.4% y/y) following a 0.7% gain.
The employment cost index increase for private industry workers also decelerated to 0.5% (2.3% y/y) following a 0.8% gain. Amongst industries, manufacturing compensation improved 0.6% (2.1% y/y) after a 0.5% rise and construction compensation increased 0.4% (2.2% y/y) after a 1.0% gain. In service-providing industries, compensation rose 0.6% (2.4% y/y) following a 0.8% rise. Information compensation rose 1.1% (2.7% y/y) on the heels of a 0.3% rise. Financial activities compensation rose 1.0% (3.1% y/y) after a 0.2% gain. Professional & business services compensation improved 0.6% (1.8% y/y) after a 0.9% rise and leisure & hospitality compensation gained 0.5% (3.9% y/y) after a 1.9% strengthening. Education & health services compensation improved 0.5% (2.1% y/y), the same as during Q1. Trade, transportation & utilities compensation rose 0.4% (2.4% y/y) after a 1.0% gain. State & local government workers realized 0.5% compensation growth (2.6% y/y) after a 0.6% gain.
Wages & salaries for private industry workers increased 0.5% (2.4% y/y). Goods producing wages increased 0.5% (2.4% y/y) as factory sector wages rose 0.5% (2.3% y/y). Construction wages advanced 0.4% (2.3% y/y). In the service sector, wages rose 0.6% (2.5% y/y). Financial activity wages jumped 1.1% (2.9% y/y) and information sector wages grew 1.0% (2.5% y/y). Professional & business service wages improved 0.5% (1.6% y/y) and leisure & hospitality wages advanced 0.6% (4.1% y/y). Education & health services wages grew a steady 0.6% (2.2% y/y). Trade, transportation and utilities wages improved 0.3% (2.6% y/y). State & local government wages advanced 0.4% (2.1% y/y).
Benefits for private industry workers increased a steady 0.6% (2.1% y/y). Factory sector benefits improved a constant 0.5% (1.6% y/y). Management & professional workers realized a very much improved 0.8% gain (2.3% y/y) while sales & office workers saw 0.7% growth (2.0% y/y), the quickest rise since Q1'16. Production & transportation workers benefit value gained a steady 0.5% (2.2% y/y) while service producing workers realized a diminished 0.4% rise (2.1% y/y), the weakest increase in two years. State & local government workers benefits increased a fairly steady 0.7% (3.2% y/y).
The employment cost index figures are available in Haver's USECON database. Consensus estimates come from the Action Economics survey, carried in Haver's AS1REPNA database.
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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