Employment costs for 4Q comes in at 0.9%
- Prior quarter 1.1%
- employment cost index for Q4 0.9% vs 1.0% expected. Lowest since the 2nd quarter of 2021.
- Wages Q4 0.9% vs 1.2% last quarter
- Benefits Q4 0.7% vs 0.9% last quarter
Down across the board is good news for inflation. However, pre-covid the data was mostly below the 1.0% level. So although lower, it is still near the highs of pre-Covid levels.
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Summary of Compensation Costs Trends
Overall Civilian Workers Compensation (3-month and 12-month Period Ending December 2023)
- 3-month Period: Compensation costs increased by 0.9%, with wages and salaries up 0.9% and benefit costs up 0.7% from September 2023.
- 12-month Period: Compensation costs rose 4.2% (down from 5.1% in December 2022). Wages and salaries increased by 4.3% (down from 5.1%), and benefit costs went up by 3.8% (down from 4.9%). Trend is lower
Private Industry Workers Compensation (12-month Period Ending December 2023)
- Overall Increase: 4.1% (down from 5.1% in December 2022). Wages and salaries up 4.3% (consistent with December 2022), benefit costs up 3.6% (down from 4.8%). Trend is lower in private sector.
- Inflation-Adjusted Compensation: Overall compensation up 0.7%, wages and salaries up 0.9%, benefit costs up 0.2%.
Union vs. Non-Union Workers Compensation (12-month Period Ending December 2023)
- Union Workers: Compensation costs increased by 4.5%, with wages and salaries up 5.4% and benefit costs up 3.4%.
- Non-Union Workers: Compensation costs up 4.0%, wages and salaries up 4.2%, and benefit costs up 3.6%.
State and Local Government Workers Compensation (12-month Period Ending December 2023)
- Compensation costs increased by 4.6% (down from 4.8% in December 2022), with wages and salaries up 4.7% (steady from the previous year) and benefit costs also up 4.6% (down from 5.0%).
This summary outlines key trends in compensation costs across different sectors, highlighting overall growth rates, comparisons with previous periods, and distinctions between union and non-union workers, as well as between private industry and government sectors.