Employment Cost Index Steady, as Expected

The employment cost index rose +.8% QoQ in the fourth quarter of 2007. This was the consensus expectation, and the same pace as the prior two quarters. The breakdown was as expected as well. Wages and salary growth was constant at +.8% QoQ, while benefits edged up slightly to +.9% QoQ, versus +.8% the prior quarter. Over the past year, the employment cost index has risen +3.3%, with wages and salaries rising +3.4% YoY and benefits rising +3.1% YoY. This was the fastest annual growth pace since 2001. In 2006, the ECI rose +3.2% YoY. Benefits costs have been in a downtrend the past few years, since peaking at +6.7% YoY in 2004. Benefits costs rose +3.6% in 2006.