Jobs
US Labor Costs Pick Up, Likely Locking In One More Fed Rate Hike
- ECI climbed 1.2% in first quarter, above median estimate
- Wages and salaries for civilian workers failed to slow down
An employee sews fabric while assembling a backpack at a factory in San Francisco, California.
Photographer: Meg Roussos/BloombergThis article is for subscribers only.
US employment costs accelerated by more than forecast at the start of the year, underscoring persistent inflationary pressures that will keep the Federal Reserve on track for another interest-rate hike next week.
The employment cost index, a broad gauge of wages and benefits, increased 1.2% in the first quarter, according to Labor Department figures released Friday. It was the first quarterly acceleration in a year, led by a pickup in benefits.