Employment costs rise more than expected in the first quarter of this year

The employment cost index rose 1.2% in the first quarter of 2024, exceeding expectations of +0.9% and the fourth quarter of 2023.

Wages and salaries increased 1.1% from the previous quarter compared to +0.9% in the previous quarter, while benefits increased 1.1%, and accelerated from 0.7% in the fourth quarter of 2023.

Labor costs for private workers increased 4.2% in the 12 months up to March 2024, but this is down from the 4.8% increase in the 12 months up to March 2023.

Wages and salaries increased 4.4% compared to a 5.0% increase in the previous 12 months. Welfare costs increased 3.7% year over year, slowing from a 4.5% year-on-year increase in March 2023.

Compensation costs for private industry workers increased by 4.1% over the same period last year, but the rate of increase over the previous 12 months was 4.8%.

Wages and salaries increased 4.3% year over year, but increased 5.1% over the past 12 months.

According to the US Bureau of Labor Statistics, welfare expenses increased by 3.6% compared to the previous year, and slowed from a 4.3% increase in the 12 months up to March 2023.