The Employment Cost Index rose by 0.8% in Q1 2017, showing the largest quarterly increase since the end of 2007. Wages and salaries increased by 0.8%, and benefits rose 0.7%.
The pace of these modest increases should not have a strong effect on inflation. Civilian workers have seen a 2.4% increase in salaries and benefits over the past year, which is lower than the 3.5% increase that indicates a healthy economy. The industries with the greatest compensation increases were sales, construction, airline manufacturing, and retail.
Recruiters can use this information to work out more competitive compensation packages for their candidates, particularly for the industries mentioned above.
Source: Associated Press, US employment costs climbed steadily in first quarter
