Q1 EMPLOYMENT COST INDEX UP 0.7%
The Employment Cost Index’s Total Civilian Compensation for Q1 ‘08 increased 0.7%, just under the 0.8% reading in Q4 ‘07.
Total Civilian Compensation y-o-y was up 3.3% compared to 3.5% in Q1 ‘07. Civilian wages and salaries grew 0.8% in Q1 following a 0.8% gain in Q4.
Wages and salaries were up 3.2% y-o-y following a 3.6% reading in Q1 ‘07. Benefit costs increased 0.6% following a 0.8% increase the prior quarter.
Private industry employment costs grew slightly faster than state and local government employment costs in Q1. Benefit costs for private industry grew 0.6% compared to mere 0.3% gain in the public sector.
When adjusted for prices, total compensation y-o-y fell 0.7% in Q1, an indication of inflation’s deteriorating effect on wages. Wage increases in Q1 did not keep pace with rising prices.