This page tracks the Employment Cost Index, a quarterly measure of the growth in wages, salaries, and employer‑paid benefits. The ECI is one of the most reliable indicators of labor‑cost inflation because it controls for shifts in industry and occupation mix.
The Federal Reserve monitors the ECI closely because rising labor costs can contribute to broader inflationary pressure.
What This Chart Shows
- Growth in total compensation (wages + benefits)
- Wage‑cost pressures that may feed into inflation
- Slower compensation growth during recessions
- Strong wage gains during tight labor markets
- Long‑term trends in employer labor costs
Key Takeaways
- The ECI is one of the Fed’s preferred wage‑inflation indicators
- Rising ECI readings can signal future inflation pressure
- Slowing ECI growth may indicate easing labor‑market tightness
- The index is less volatile than average hourly earnings
- Best interpreted alongside CPI, PPI, and Unemployment Rate
Data Source
U.S. Bureau of Labor Statistics (BLS)