The employment cost index was released by the BLS today. This index is largely ignored, and has limited utility. The lack of value has mostly to do with the fact that it is such a lagging indicator. It’s a quarterly report. The end of October marks the release of September statistics, reflecting decisions made in June. That said, there were a few things of interest, and I think the next report will possibly be meaningful in comparison. Here are my highlights:
For both seasonally adjusted and not seasonally adjusted, employment costs increased (that’s both salaries and benefits). That reflects both quarterly and annual comparisons.
State and local government costs rose more than private costs. The state is offering better raises and benefit increases than the private sector. Yay for wasted taxpayer money.
On an annual basis, wages fell relative to the cost of living for all classes of civilian workers.
I expect things to look rather bleak next quarter. October was not a good month for many.
