Employment costs in the U.S. rose in the third quarter of 2015.
The Bureau of Labor Statistics reported that wages and salaries for civilian workers increased 0.6 percent from the second quarter, with benefits increasing 0.5 percent. Over the year, wages and salaries grew 2.1 percent, nearing the 2.3 percent increase registered during the year ending September 2014. Employer costs for health benefits, however, increased 3 percent over the year, overtaking the 2.6 percent increase in 2014.
The Wall Street Journal reported that total compensation in the third quarter grew at the same rate as in the spring, and that the 2 percent growth rate is equivalent with average wage gains that have been registered throughout the recovery.
According to the Wall Street Journal, economists believe that there should be more significant wage and price increases as the labor market becomes stronger, the economy continues to improve and employers experience greater competition for a smaller number of job candidates.
Business Insider reported that in a note to clients after the release of the report, Ian Shepherdson at Pantheon Macro summed up the modest findings, stating: “In one line: Rebound, but no reversal of Q2 softness; no clear signal for the Fed.”
The source reported that while economic data was incomplete, anecdotal evidence shows that wage pressure is building, most notably in the service industry.