WASHINGTON – The employment cost index fell slightly in the fourth quarter to an expected 0.6% increase, below the 0.7% increase seen in the third quarter, data released by the Bureau of Labor Statistics Wednesday showed.
While the quarter/quarter pace of growth fell slightly in the most recent quarter, the year-over-year rate saw a rise to 2.6%, suggesting continuously steady compensation growth.
Benefits growth also slowed down this quarter with a 0.5% increase, following a 0.8% rise in the third quarter. Despite the decline, benefits were up 2.5% year/year, a faster pace than the 2.4% year/year rate in third quarter and a much faster pace than the 2.1% year/year seen in fourth quarter of 2016. The benefits year/year growth is continuing to trend upwards.
Wage and salary growth saw a decline to a 0.5% gain from a 0.7% rise in the third quarter. The year/year pace stayed at 2.5%, still higher than the 2.3% year/year pace seen in the fourth quarter of 2016.
Among the occupational groups, private industry workers compensation costs increased to 3.1% year/year for production, transportation, and material moving occupations, higher than the 2.7% seen in fourth quarter of 2016.
