Employment Costs Up By 1.8%

Employment compensation for U.S. workers has grown over the past 12 months by the lowest amount on record, reflecting the recession that has gripped the country. The Labor Department said that employment costs rose by 1.8% for the 12 months ending in June, the smallest annual gain on records that go back to 1982. The department said that for the April-June quarter, its Employment Cost Index rose by just 0.4%, just slightly above the 0.3% rise in the first quarter, which had been the smallest quarterly gain on record.

The increase in overall compensation for the past 12 months included the record low 1.8% rise in wages and salaries, which account for 70% of compensation costs. Benefits, which include such things as health insurance and contributions to pension plans, also rose by 1.8% during the past year, the lowest annual gain in this category since a similar increase during the 12 months ending in September 1997.