Global| Apr 30 2014U.S. Employment Cost Index Slows in Q1
Summary
The employment cost index for private industry workers increased 0.3% (1.8% y/y) in Q1'14, following a 0.5% rise in Q4. This was the smallest quarterly increase in almost five years. This report includes annual seasonal adjustment [...]
The employment cost index for private industry workers increased 0.3% (1.8% y/y) in Q1'14, following a 0.5% rise in Q4. This was the smallest quarterly increase in almost five years. This report includes annual seasonal adjustment revisions back to 2009.
Wages & salaries of private industry workers rose just 0.2% (1.7% y/y) last quarter, slowing from 0.5% in Q4. Financial activities workers wages rose 0.4% in Q1 (2.5% y/y) after their larger gain of 0.8% in Q4. Retail trade workers had no change in wages (+1.6% y/y) after their outsized 0.8% raise in Q4. Manufacturing sector workers' wages rose 0.4% (2.0% y/y) and education & health care workers had a 0.2% rise (1.7% y/y) in pay. Workers in the information sector saw some recovery in their wages in Q1, 0.4% (1.1% y/y), after a fall of 0.2% in Q4.
Benefit costs increased 0.3% (1.8% y/y). Factory sector benefits gained 0.9% (2.0% y/y). Service occupations workers saw a 0.5% decrease (0.9% y/y) in benefits while production, transportation & materials moving workers also saw 0.5% growth (1.3% y/y). Management & professional workers had just a 0.1% increase (1.9% y/y).
Total compensation for state & local government workers rose 0.5% (1.9% y/y), down from 0.7% in Q4. That reflected a 0.5% rise in Q1 (2.3% y/y) for public administration workers, a 0.5% gain (1.7% y/y) in education and a 0.3% decline (+1.5% y/y) for health care & social services.
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.
| ECI- Private Industry Workers (%) | Q1'14 | Q4'13 | Q3'13 | Q4 Y/Y | 2013 | 2012 | 2011 |
|---|---|---|---|---|---|---|---|
| Compensation | 0.3 | 0.5 | 0.5 | 1.8 | 1.9 | 2.0 | 2.1 |
| Wages & Salaries | 0.2 | 0.5 | 0.4 | 1.7 | 1.9 | 1.8 | 1.6 |
| Benefit Costs | 0.3 | 0.4 | 0.6 | 1.8 | 1.9 | 2.2 | 3.5 |
Carol Stone, CBE
AuthorMore in Author Profile »Carol Stone, CBE came to Haver Analytics in 2003 following more than 35 years as a financial market economist at major Wall Street financial institutions, most especially Merrill Lynch and Nomura Securities. She has broad experience in analysis and forecasting of flow-of-funds accounts, the federal budget and Federal Reserve operations. At Nomura Securites, among other duties, she developed various indicator forecasting tools and edited a daily global publication produced in London and New York for readers in Tokyo. At Haver Analytics, Carol is a member of the Research Department, aiding database managers with research and documentation efforts, as well as posting commentary on select economic reports. In addition, she conducts Ways-of-the-World, a blog on economic issues for an Episcopal-Church-affiliated website, The Geranium Farm. During her career, Carol served as an officer of the Money Marketeers and the Downtown Economists Club. She has a PhD from NYU's Stern School of Business. She lives in Brooklyn, New York, and has a weekend home on Long Island.
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