Prior was +0.9%Wages q/q +0.9% vs +0.8% priorBenefits q/q +1.0% vs +1.2% prior
The U.S. Employment Cost Index showed labor costs continued to rise at a steady pace in the second quarter of 2026. For all civilian workers, total compensation increased 0.9% in the three months through June, matching gains in both wages and salaries (0.9%) while benefit costs rose slightly faster at 1.0%. On a year-over-year basis, compensation increased 3.4%, with wages and salaries up 3.2% and benefits rising 3.8%.
Within the private sector, compensation also advanced 0.9% during the quarter, as wages and salaries and benefit costs both increased 0.9%. Compared with a year earlier, private-sector compensation rose 3.3%, reflecting a 3.1% increase in wages and salaries and a 3.8% gain in benefits.
Despite continued nominal wage growth, inflation-adjusted wages and salaries for private-industry workers fell 0.4% over the year, indicating that consumer price increases slightly outpaced wage gains.
This article was written by Giuseppe Dellamotta at investinglive.com.