Employment cost index for 4Q
- US employment cost index for 4Q 1.0% versus 1.2% estimate
- prior 3Q gains was 1.3%
- employment wages 1.1% versus 1.5% previously
- employment benefits 0.9% versus 0.9% previously
- YoY employment costs rose 4.0% vs 2.5% in 2020
- Wages and salaries in 2021 rose 4.5% vs 2.6% in 2020
- Benefits YoY rose 2.8% vs 2.3% in 2020
- Private Employment costs increased 4.4% YoY vs 2.6% in 2020
- Public employment costs increased 2.6% YOY vs 2.3% in 2020
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The markets are concerned about the impact on higher wages on inflation. The trend higher in 2021 will be worrisome for the Fed. Although this report shows an easing of the move higher, the 1.3% and 1.0% back to back gains are still a concern, it just is not as bad as expectations. So there is some relief.