The Labor Department’s quarterly employment cost index basically tells us how much employers are paying their employees.
But recent union victories may keep upward pressure on wages.
The employment cost index, a favorite Federal Reserve data point, captures the cost of employing people, including benefits.
Wages are rising faster than prices. So on average, people’s purchasing power is increasing.
Wages are rising and benefits are getting better. Trouble is, inflation is outpacing pay.
The central bank will scrutinize the employment cost index for 2021’s fourth quarter for signs that rising pay could fuel rising prices.
Labor costs and wages make anemic gains in second quarter reports.
