US Employment Costs Maintain 0.9% Quarterly Increase in Second Quarter

The US Employment Cost Index (ECI) increased by 0.9% in the second quarter, mirroring the previous quarter's pace. Wages and salaries saw a 1.0% rise, while benefits growth moderated to 0.7%. These sustained employment cost gains exceed pre-pandemic levels and are inconsistent with the Federal Reserve's 2% inflation target, suggesting ongoing inflationary pressures.