The employment cost index rose 2.8 percent for the second quarter, the biggest increase since the third quarter of 2008 according to a new a report from the Bureau of Labor Statistics released Tuesday. Compensation for workers rose to a nearly 10-year high in the second quarter shows the report.
The employment cost index increased 0.6 percent for civilian workers in the three-month period ending in June, according to report. “That brought the 12-month rate up to 2.8 percent, the highest level since 2.9 percent in the third quarter of 2008, amid the financial crisis and the Great Recession,” reports CNBC.
The employer cost index rose in manufacturing, construction, and services. Compensation for transportation rose 4.0 percent, bolstering arguments that the labor market is tighter in trucking than the broader economy reports Breitbart.
Wages and salaries rose 0.5 percent for the quarter and 2.8 percent for the 12-month period, while benefits costs increased 0.9 percent and 2.9 percent, respectively says CNBC.
However, it’s worth noting that pay gains overall slowed in the second quarter. Total compensation increased just 0.6 percent, which is down from 0.8 percent in the first three months of the year.