U.S. employment costs rise 0.8% in Q3

The slowdown from the 0.9% increase recorded in the previous quarter indicates that growth in labor costs is losing momentum. According to data from the U.S. Bureau of Labor Statistics (BLS), wages and salaries rose by 0.7% quarter over quarter, while benefit costs increased by 0.9%.

On an annual basis, total employment costs increased by 3.4%, with wages and salaries rising 3.1% and benefit costs climbing 3.9%. Employment costs in the private sector grew by 0.8% quarter over quarter, while costs for state and local government employees increased by 0.6%. The figures suggest that labor cost pressures in the U.S. economy are gradually easing, providing important insights into wage dynamics closely monitored by the Federal Reserve as part of its efforts to control inflation.