Economics

U.S. Employment Costs Climb by a Solid 1% After Record Third-Quarter Gain

  • Compared with prior quarter ECI rose 1% after record 1.3% gain
  • Wages and salaries increased 4.5% in year through December
Commuters walk through Grand Central station during morning rush hour in New York.Photographer: Jeenah Moon/Bloomberg
Lock
This article is for subscribers only.

U.S. employment costs rose at a robust pace for a second-straight quarter, wrapping up the strongest year of labor inflation in two decades as businesses competed for a limited supply of workers.

The employment cost index, a broad gauge of wages and benefits, advanced 1% in the fourth quarter, according to Labor Department figures released Friday. That followed a 1.3% advance seen in the third quarter, which was the strongest quarterly increase in comparable data back to 2001.