Wages and Salaries Continue to Fuel Gain in ECI
The Labor Department said the Employment Cost Index rose 0.7% for the first quarter (Q1) 2019 and 2.8% year-over-year, meeting the consensus forecast.
Wages and salaries — representing roughly 70% of compensation costs — rose 0.7% and benefit costs, which make up the remaining 30% of compensation, also rose 0.7% from March 2018.
| Prior | Consensus | Forecast Range | Actual | |
| Employment Cost Index – Q/Q ∆ | 0.7% | 0.7% | 0.6% — 0.9% | 0.7% |
| Employment Cost Index – Y/Y ∆ | 2.9% | 2.9% | 2.8% — 3.2% | 2.8% |
Wages and salaries gained 2.9% for the 12-month period ending in March 2019, up from 2.7% for the 12-month period ending in March 2018. Benefit costs increased 2.6% for the 12-month period ending in March 2019. In March 2018, the increase was also 2.6%.
For private industry workers only, compensation costs rose 2.8% over the year, matching the gain in March 2018. Wages and salaries rose 3.0% for the 12-month period ending in March 2019, up from an increase of 2.9% in March 2018.
The cost of benefits rose 2.4% for the 12-month period ending in March 2019 and increased 2.5% in March 2018.
