WASHINGTON — The Q4 employment cost index posted a 0.5% increase, a tad above expectations, for a 2.0% gain over the year. This compares to a 1.9% increase for 2012.
Wages were up 0.6%, and benefits rose 0.6% (rounding and differing seasonal adjustments means these do not add to the total).
Employment weights were updated to 2012 from 2002 with unknown effect, though we suspect this added services jobs at the high and low ends, and cut some highly compensated union construction employment.
Sales wages posted a 1.1% rise as bonuses got entrenched into December, boosting the totals. In 2012, these bonuses were accelerated from March (as were corporate dividends) due to hikes in tax rates in the new year.
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