ibusinesslines.com
ibusinesslines.com December 17, 2018


USA job growth expected to accelerate with strong wage gains

03 November 2018, 03:30 | Kelvin Horton

USA job growth expected to accelerate with strong wage gains

USA job growth expected to accelerate with strong wage gains

In the breakdown of the index, private-sector wages and and salaries jumped 3.1 percent over the 12-month period ending in September, the biggest annual increase since 2009.

Wages and salaries were up 2.9 percent in the 12 months through September, according to data released Wednesday by the Department of Labor.

The employment cost index, which tracks the hiring cost for USA employers quarterly, rose 0.8 percent during the third quarter, beating the estimated 0.7 percent that economists surveyed by Refinitiv ahead of Wednesday's release predicted.

Wages and salaries for civilian workers increased almost 1 percent, while benefits costs jumped 0.4 percent.

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.

Following a robust third fiscal quarter, wages and salaries in the US are up by 0.9 percent this month so far - 3.1 percent this year - which is the highest level in a decade. That followed a 2.9 percent gain in the year to June.

Benefits for all workers increased 0.4 percent in the July-September quarter after rising 0.9 percent in the second quarter. The jobs market is viewed as being close to or at full employment, with the unemployment rate at a near 49-year low of 3.7 percent.


Sluggish pay growth has been one of the biggest problems in this recovery, but employers are finally having to raise wages at a more normal level typically seen during good economic times. He added that the gains are a "testimonial to the robust employment picture is the broad-based gains in jobs across industries".

But the acceleration in employment growth was likely tempered by Hurricane Michael, which struck Florida in mid-October.

"How hot is the labor market?" It is also considered a better predictor of core inflation.

The government's quarterly ECI reading - which covers employer- paid taxes such as Social Security and Medicare in addition to the cost of wages and benefits - offers a glimpse at how American workers are being compensated.

The unemployment rate fell to 3.7 percent in September, the lowest level since 1969.

Average hourly earnings are forecast rising 0.2 percent in October after advancing 0.3 percent in September.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc.



Other News

Trending Now

Indonesia protests execution of migrant worker in Saudi
Observors say Indonesia is unable to criticize other countries that uphold capital punishment without appearing hypocritical. Under Saudi Arabia's sharia law, drug trafficking, rape and murder are all punishable by death.

India record highest number of Internet shutdowns in the world
For now it's good to see South Africa listed as a free country when it comes to the internet , but more can always be done to improve our status.

Migrants who throw rocks will be arrested, not shot
That means providing protection that is "critical to national security, from a threat or aggression against the United States". US President Donald Trump has deployed thousands of troops to the border as part of his crack down on illegal immigration.

Rey Mysterio Posts Unmasked Photo Ahead Of WWE Crown Jewel
Other matches on the card include Brock Lesnar vs Braun Strowman for the vacant Universal Title, AJ Styles vs. Samoa Joe for the WWE Championship and The New Day vs The Bar for the SmackDown Live Tag Team Championship.

Mauricio Pochettino wants to take Tottenham Hotspur to ‘last level’
Yes, I want to feel the glory with Tottenham", he said. "Otherwise it's hard to achieve big things". Sometimes to win titles today is hard , for many reasons that you and our fans know very well.

'Just Ask Hillary': 'Outnumbered' on Impact of Oprah, Hollywood on Midterm Voters
Pence said Abrams is being bankrolled by Hollywood liberals, referring to Winfrey and actor Will Ferrell . I'm not trying to test any waters.

Destiny 2 Will Be Free on PC for a Limited Time
All you have to do is download the Blizzard app (in case you haven't installed it), head over at Destiny 2 and get your free copy. Destiny 2 on PC is free for Battle.net users from November 2 to November 18, developer Bungie announced at BlizzCon 2018 .