- Reuters/Mike Blake
The employment cost index came in as expected in the first quarter of 2016.
ECI rose by 0.6%, in line with economists’ expectations.
Wages and salaries, which make up 70% of the index, rose by 0.7%. Meanwhile, benefits, which make up the other 30%, rose by 0.5%.
Compensation costs for civilian workers increased by 1.9% over the year, while compensation costs for private industry workers increased by 1.8% over the year.
The previous reading showed that the index rose by 0.6% in the fourth quarter of 2015.
The ECI report is a more comprehensive measure of wage growth than the average hourly earnings figure released with the monthly jobs report as it takes into account benefits in addition to wages and salaries.