Sean Gallup, Getty Images
Industryweek 25440 103117 Steel Workers Seangallup2
Industryweek 25440 103117 Steel Workers Seangallup2
Industryweek 25440 103117 Steel Workers Seangallup2
Industryweek 25440 103117 Steel Workers Seangallup2
Industryweek 25440 103117 Steel Workers Seangallup2

US Employment Costs Pick Up on Faster Wage Gains at Factories

Oct. 31, 2017
The new Labor Department report showed a 1% increase in manufacturer employment costs from the prior quarter, helped by a jump at aircraft makers.

U.S. employment costs picked up in the third quarter from the previous three months, helped in part by faster wage gains in manufacturing, the Labor Department said Tuesday.

Highlights of Employment Cost Index

Employment cost index advanced 0.7%, matching the estimate, after a 0.5% gain in the prior three months. Wages and salaries also rose 0.7% in the third quarter, as benefits costs climbed 0.8% after rising 0.6%. Total compensation, meanwhile, which includes wages and benefits, rose 2.5% over the past 12 months, the most since 1Q 2015.

Big Picture

The report showed a 1% increase in manufacturer employment costs from the prior quarter, helped by a jump at aircraft makers. Wages and salaries at factories climbed 0.8%, while benefit costs increased 1.7%.

The government’s quarterly read on employer costs offers another take on wage growth, which has been gradually moving higher. The ECI, which measures employer-paid taxes such as Social Security and Medicare in addition to the costs of wages and benefits, has shown a fairly steady pace of gains. The sustained pickup is another sign of a tighter labor market that’s forcing businesses to compete for a dwindling share of available workers.

Other Details

Wages and salaries of all civilian workers rose 2.5% from year earlier. Benefit costs in private industry rose 2.4% from third quarter of 2016, and employer costs for health benefits rose 1.1% from a year ago.

By Vince Golle

Popular Sponsored Recommendations

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

3 Best Practices to Create a Product-Centric Competitive Advantage with PRO.FILE PLM

Jan. 25, 2024
Gain insight on best practices and strategies you need to accelerate engineering change management and reduce time to market. Register now for your opportunity to accelerate your...

Transformative Capabilities for XaaS Models in Manufacturing

Feb. 14, 2024
The manufacturing sector is undergoing a pivotal shift toward "servitization," or enhancing product offerings with services and embracing a subscription model. This transition...

Shifting Your Business from Products to Service-Based Business Models: Generating Predictable Revenues

Oct. 27, 2023
Executive summary on a recent IndustryWeek-hosted webinar sponsored by SAP

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!