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. Â Â
Recruiters can use this information to work out more competitive compensation packages for their candidates, particularly for the industries mentioned above. Â
Source: Associated Press, US employment costs climbed steadily in first quarter
