Jobs
US Employment Costs Rise at Faster Pace on Pickup in Wage Growth
- Index of wages and benefits rose 1.1% in third quarter
- Salaries for government workers increased by most in a year
A restaurant worker in Washington, DC, US.
Photographer: Al Drago/BloombergThis article is for subscribers only.
US employment costs unexpectedly accelerated in the third quarter, heightening concerns that a strong labor market risks keeping inflation above the Federal Reserve’s target.
The employment cost index, a broad gauge of wages and benefits, increased 1.1% in the July-to-September period after rising 1% in the second quarter, according to Bureau of Labor Statistics figures released Tuesday. While wage growth picked up slightly within private industry, salaries at state and local governments surged.