WASHINGTON (AFX) - Tbe employment cost index rose a seasonally adjusted 1.1 pct in the first quarter, the Labor Department said. This is the largest increase in the ECI since the first quarter of 2000. On a year-on-year basis, the index rose 4.1 pct.
The gain in the Q1 employment cost index was roughly in line with Wall Street expectations. The consensus forecast of Wall Street economists called for the ECI to rise 1.2 pct.
In the fourth quarter, the employment cost index was up 0.9 pct and rose 4.1 pct year-on-year.
Benefits rose 1.0 pct in the first quarter up from the 0.8 pct increase in the fourth quarter.
On a year-on-year basis, benefit costs were up 3.8 pct in the first quarter, compared with a 3.8 pct rate in the fourth quarter.
Wages and salaries, which account for 70 pct of compensation, rose 1.0 pct in the first quarter, up from a 0.8 pct rise in the fourth quarter.
On a year-on-year basis, wages were up 4.7 pct in the first quarter, down from a 4.9 pct gain in the fourth quarter.