The Q1 Employment Cost Index increased 1.2%, seasonally adjusted, for the three-month period ending in March 2023 (consensus 1.1%) following a revised 1.1% increase (from 1.0%) for the three-month period ending in December 2022. Wages and salaries, which account for about 70% of compensation costs, increased 1.2% following a revised 1.2% increase (from 1.0%).
The key takeaway from the report is that labor costs didn’t show any meaningful signs of deceleration. On a 12-month basis, compensation costs for civilian workers increased 4.8% versus 4.5% in March 2022 while benefit costs increased 4.5% versus 4.1% in March 2022.