July 31, 2020
The employment cost index for civilian workers climbed at a 2.0% rate in the second quarter after having risen at a 3.2% pace in the first quarter. Over the course of the past year it has risen 2.7%.
With the unemployment rate having climbed to 14.7% in April but remaining high at 11.1% in June, there is no longer going to be upward pressure on wages caused by the very tight labor market. Quite the opposite.
Wages climbed at a 1.4% rate in the second quarter after having risen 3.8% rate in the first quarter. Wages and have risen 2.9% in the past year.
Benefits climbed at a 3.1% rate in the second quarter after having risen 1.4% rate in the first quarter. Over the past year benefits have risen 2.3%.