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Economics

U.S. Employment Costs Rise at Record Pace as Wages Surge

  • Wages and salaries rise 1.5% for civilians, an all-time high
  • Companies are raising pay to attract workers in tight market
Commuters at Grand Central Station in New York City.

Commuters at Grand Central Station in New York City.

Photographer: Spencer Platt/Getty Images
Updated on

U.S. employment costs rose at the fastest pace on record in the third quarter as companies across a variety of sectors raised wages against a backdrop of labor shortages. 

The employment cost index, a broad gauge of wages and benefits, rose 1.3% from the prior quarter, according to Labor Department data released Friday. The gauge increased 3.7% from a year earlier.