Summary The labor crunch became even more costly for businesses in the fourth quarter, with the Employment Cost Index (ECI) rising 1.0%. Over the past year, the ECI is up 4.0%—the biggest one year gain in data going back to 2001. Yet while still blistering, the quarterly increase was more restrained than Q3’s 1.3% gain. That may tamp down fears of a wage-price spiral amid signs businesses are not upping pay at such a frenzied pace.
Labor Costs Slow, but Still Rising at a Scorching RateThe labor crunch became even more costly for businesses in the fourth quarter, with the Employment Cost Index (ECI) rising 1.0%. Over the past year, the ECI is up 4.0%—the biggest one year gain in data going back to 2001. Yet while still blistering, the quarterly increase was more restrained than Q3’s 1.3% gain. That may tamp down fears of a wage-price spiral amid signs businesses are not upping pay at such a frenzied pace. READ FULL ARTICLE>>