Highlights
Employment costs ticked higher in the second quarter but remain subdued. The sequential quarter-to-quarter rate rose 0.5 percent which is on the high side but the year-on-year rate is only plus 1.7 percent which is down 2 tenths from the first quarter rate and is the lowest rate since the first quarter of 2010. Benefits, up a sequential 0.6 percent, are behind what pressure there is in the second-quarter data though here too the year-on-year rate is subdued at plus 2.1 percent. The wages & salaries component is up a moderate 0.4 percent with the year-on-year rate at plus 1.7 percent. The cost pressure for labor is not much of a policy issue right now given the high rate of unemployment and the subdued level of demand.

Market Consensus before announcement
The employment cost index rose 0.4 percent in the first quarter. The gain was one tenth below the quarterly rate in the fourth quarter, but details showed solid acceleration for the wage component, up 0.5 percent versus the fourth quarter's 0.3 percent rise. Growth in wages has been slow and flat the last several years and has been lagging growth in benefits which rose 0.5 percent following the fourth quarter's 0.7 percent surge. Year-on-year rates show how much benefits are ahead, at plus 2.7 percent for benefits versus plus 1.7 percent for wages.

2012 Release Schedule

Released On: 1/31 4/27 7/31 10/31 Release For: Q4: Q1: Q2: Q3: