The BLS released the Q1 Employment Cost Index today and it shows employment cost up 1.2 percent over the expected 1 percent indicating more persistent inflation. From the BLS:
EMPLOYMENT COST INDEX – MARCH 2024
Compensation costs for civilian workers increased 1.2 percent, seasonally adjusted, for the 3-month period ending in March 2024, the U.S. Bureau of Labor Statistics reported today. Wages and salaries increased 1.1 percent and benefit costs increased 1.1 percent from December 2023. (See tables A, 1, 2, and 3.)
Compensation costs for civilian workers increased 4.2 percent for the 12-month period ending in March 2024 and increased 4.8 percent in March 2023. Wages and salaries increased 4.4 percent for the 12-month period
ending in March 2024 and increased 5.0 percent for the 12-month period ending in March 2023. Benefit costs increased 3.7 percent over the year and increased 4.5 percent for the 12-month period ending in March 2023.
(See tables A, 4, 8, and 12.)
Compensation costs for private industry workers increased 4.1 percent over the year. In March 2023, the increase was 4.8 percent. Wages and salaries increased 4.3 percent for the 12-month period ending in March
2024 and increased 5.1 percent in March 2023. The cost of benefits increased 3.6 percent for the 12-month period ending in March 2024 and increased 4.3 percent in March 2023. Inflation-adjusted (constant dollar)
compensation costs for private industry workers increased 0.6 percent for the 12-month period ending in March 2024. Inflation-adjusted wages and salaries increased 0.8 percent for the 12 months ending March 2024. Inflation-adjusted benefit costs in the private sector increased 0.1 percent over that same period. (See tables A, 5, 9, and 12.)
Within private industry by bargaining status, compensation costs increased 5.3 percent for union workers and 3.9 percent for nonunion workers for the 12-month period ending in March 2024. Wages and salaries increased 6.3 percent for union workers and 4.1 percent for nonunion workers for the 12-month period ending in March 2024. Benefit costs increased 3.8 percent for union workers and 3.6 percent for nonunion workers for the period ending in March 2024.(See tables 6, 10, and 12.)
Compensation costs for state and local government workers increased 4.8 percent for the 12-month period ending in March 2024, and increased 4.9 percent in the period ending in March 2023. Wages and salaries increased 5.0 percent for the 12-month period ending in March 2024 and increased 4.7 percent a year ago. Benefit costs increased 4.5 percent for the 12-month period ending in March 2024. The prior year increase was 5.0 percent. (See tables A, 7, 11, and 12.)
There is nothing to do now except prepare for higher inflation so stay tuned, stay profitable and stay solvent…