U.S. Labor Costs Rise 0.8% in Third Quarter as Wage Inflation Pressure Remains Contained

According to Jin10, the U.S. Bureau of Labor Statistics said Friday that the Employment Cost Index (ECI), the broadest measure of labor costs, rose 0.8% in the third quarter, below its 0.9% increase from April through June and in line with economists’ expectations. Labor costs rose 3.4% in the 12 months through September, unchanged from the 12-month increase through June. Policymakers regard the ECI as one of the better measures of labor-market slack and a predictor of core inflation because it adjusts for changes in worker composition and job quality.