×
Newsmax TV & Webwww.newsmax.comFREE - In Google Play
VIEW
×
Newsmax TV & Webwww.newsmax.comFREE - On the App Store
VIEW
Tags: labor costs | inflation | biden administration

US Labor Costs Increase Solidly in the Fourth Quarter

labor activists
Labor activists hold a rally in support of raising the minimum wage to $15 an hour on the National Mall in Washington, D.C., in support of striking McDonald's workers demanding a wage increase. (Getty Images, May 19, 2021 file photo)

Friday, 28 January 2022 08:57 AM

U.S. labor costs increased strongly in the fourth quarter, pointing to a rapidly tightening jobs market and supporting the Federal Reserve's shift towards raising interest rates.

The Employment Cost Index, the broadest measure of labor costs, rose 1.0% last quarter after increasing 1.3% in the July-September period, the Labor Department said on Friday.

Labor costs surged 4.0% on a year-on-year basis, the largest rise since 2001, after increasing 3.7% in the third quarter.

The ECI is widely viewed by policymakers and economists as one of the better measures of labor market slack and a predictor of core inflation as it adjusts for composition and job quality changes. Economists polled by Reuters had forecast the ECI advancing 1.2% in the fourth quarter.

The labor market is viewed as being at or near maximum employment. There were 10.6 million job openings at the end of November. The Fed on Wednesday said it was likely to raise interest rates in March.

Wages and salaries rose 1.1% last quarter after increasing 1.5% in the third quarter. They were up 4.5% year-on-year. Benefits rose 0.9% after a similar gain in the July-September quarter.

Annual inflation is increasing at a pace last seen four decades ago and is well above the Fed's 2%.

© 2022 Thomson/Reuters. All rights reserved.


StreetTalk
U.S. labor costs increased strongly in the fourth quarter, pointing to a rapidly tightening jobs market and supporting the Federal Reserve's shift towards raising interest rates. The Employment Cost Index, the broadest measure of labor costs, rose 1.0% last quarter.
labor costs, inflation, biden administration
207
2022-57-28
Friday, 28 January 2022 08:57 AM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
Get Newsmax Text Alerts
TOP

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved
NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved