US Wages, Salaries Rise by Most in 10 Yrs, 227,000 Jobs Added
US wages and salaries rose by the most in a decade while private sector payrolls increased by the most in 8 months in October, suggesting overall job growth accelerated this month after Hurricane Florence weighed on restaurant and retail employment in September.
The Labor Department’s Employment Cost Index showed wages and salaries, which account for 70% of employment costs, jumped 0.9% in Q-3 after climbing 0.5% in the prior Quarter.
That pushed the annual increase in wages and salaries to 2.9%, the biggest gain since September 2008, from 2.8% in the year to June.
Wage growth was boosted by a jump in transportation and warehousing, likely reflecting a shortage of truck drivers. There were also gains on other industries, including information, healthcare and leisure and hospitality.
The strong jobs market is gradually putting upward pressure on compensation, with other data Wednesday showing a solid increase in labor costs in Q-3.
The ADP national employment report showed private sector employment rose by 227,000 jobs last month, beating economists’ expectations for an increase of 189,000. September’s payrolls count was revised down to 218,000 from 230,000.
The ADP report is jointly produced with Moody’s Analytics was published ahead of the release of the government’s more comprehensive October NFPs report Friday.
According to a Reuters survey of economists, NFPs may have rebounded by 190,000 jobs in October after Florence depressed restaurant and retail payrolls in September.
Payrolls increased by 134,000 in September. The unemployment rate is forecast unchanged at a near 49-year low of 3.7% in October.
The jobs market is seen as being close to or at full employment. There are a record 7.1-M job unfilled openings in the economy.
Private sector wages and salaries rose 0.8% in Q-3 after increasing 0.6% in the prior frame. They were up 3.1% in the 12 months through September, the biggest increase since Q-2 of Y 2008.
Benefits for all workers increased 0.4% in Q-3 after rising 0.9% in Q-2. They were up 2.6% in the 12 months through September after rising 2.9% in the year to June.
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