The Labor Department's Employment Cost Index showed wages and salaries, which account for 70% of employment costs, jumped 0.9% in Q-3 after climbing 0.5% in the prior Quarter.
The department's employment cost index jumped 0.8 percent, beating economists' estimates of 0.7 percent.
In the private sector, compensation climbed almost 3 percent over the a year ago, wages and salaries jumped 3.1 percent and benefits 2.5 percent, the department reported.
That may be one reason employers who can find qualified candidates have to pay them more. In those years wages were only growing in a range of 2 percent to 2.5 percent a year, but inflation remained low. It is also considered a better predictor of core inflation.
USA companies added jobs in October at the healthiest pace in eight months, and wages rose by the most in a decade, the latest evidence of the durable strength of the US job market. Unemployment is at a 49-year low and there are more job openings than unemployed Americans, which forces companies to fight for available workers.
"The strength in the ADP report supports our view that the underlying trend in the labor market remains upbeat", said Daniel Silver, an economist at JPMorgan in NY. The annual increase is expected to surpass 3 percent in October's figures, which would be the first gain at that pace since 2009.
Nonfarm payrolls probably increased by 190,000 jobs last month, according to a Reuters survey of economists.Читайте также: There are some catches to buying a OnePlus 6T through T
Hiring was down a modest 0.06 percent from last month.
Wednesday's figures came as national unemployment hovers at 3.7 percent, the lowest since 1969. The report shows consumers who live in the South enjoyed the strongest job growth, while those in the West saw their paychecks grow the most. The consumer price index climbed 2.3 percent in that time.
Rising wages should help support consumer spending and soften the hit to the economy from a softening housing market and stalling business investment. "The only blemish is the struggles small businesses are having filling open job positions". From September of 2016 to September of 2017, wages and salaries rose 2.5 percent, the Labor Department said.
U.S. wages and salaries rose by the most in a decade while private sector payrolls increased by the most in 8 months in October, suggesting overall job growth accelerated this month after Hurricane Florence weighed on restaurant and retail employment in September. They were up 3.1% in the 12 months through September, the biggest increase since Q-2 of Y 2008. "Testimonial to the robust employment picture is the broad-based gains in jobs across industries".
Economists say his policies deserve some credit for triggering faster growth, but unemployment has been falling steadily for eight years and wages have been inching higher.
That is seen supporting the economy through at least early 2019 when gross domestic product is expected to significantly slow as the stimulus from the Trump administration's $1.5 trillion tax cut package fades.При любом использовании материалов сайта и дочерних проектов, гиперссылка на обязательна.
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