WASHINGTON, Feb 10 (Reuters) – Growth in U.S. labor costs unexpectedly slowed in the fourth quarter, leading to the smallest annual \u200bincrease in 4-1\/2 years, as softening demand for labor restrained \u200cwage gains.<\/p>\n
The Employment Cost Index (ECI), the broadest measure of labor costs, rose 0.7% last quarter \u200cafter advancing 0.8% in the July-September quarter, the Labor Department’s Bureau of Labor Statistics said on Tuesday. Economists polled by Reuters had forecast the ECI rising 0.8%.<\/p>\n
Labor costs increased 3.4% in the 12 months through December, \u2060the smallest gain since the \u200csecond quarter of 2021. They rose 3.5% in the year through September.<\/p>\n
The ECI is viewed by policymakers as \u200done of the better measures of labor market slack and a predictor of core inflation because it adjusts for composition and job-quality changes.<\/p>\n
A lackluster labor market \u200bis curbing wage growth. The government reported last week that there \u200cwere 0.87 job openings for every unemployed person in December compared to 0.89 in November. That ratio has dropped from about 1.08 a year ago.<\/p>\n
Though wage pressures have diminished, import tariffs have raised goods prices, keeping inflation elevated.<\/p>\n
Economists expect the Federal Reserve to hold interest rates steady \u2060through the first half of the year. \u200bThe U.S. central bank last month left \u200bits benchmark overnight interest rate in the 3.50%-3.75% range.<\/p>\n
Wages and salaries, which account for the bulk of labor costs, \u200drose 0.7% last quarter \u2060after increasing 0.8% in the July-September quarter. They advanced 3.3% on an annual basis after increasing 3.5% in the 12 months \u2060through September. When adjusted for inflation, overall wages rose 0.7% in the 12 months \u200cthrough December after climbing 0.6% in the third quarter.<\/p>\n
(Reporting by \u200cLucia Mutikani; Editing by Mark Porter)<\/p>\n","protected":false},"excerpt":{"rendered":"WASHINGTON, Feb 10 (Reuters) – Growth in U.S. labor costs unexpectedly slowed in the fourth quarter, leading to…\n","protected":false},"author":3,"featured_media":580391,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[12],"tags":[64,216398,79,110688,67,132,68],"class_list":["post-580390","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-eci","tag-economy","tag-labor-costs","tag-united-states","tag-unitedstates","tag-us"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/116047691438450254","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/580390","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=580390"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/580390\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/580391"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=580390"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=580390"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=580390"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}