Labor Dept. figures show rising wages -- and possibly soon, inflation

Compartir

For state and local government workers, the figures are the same, but switched, with wages growing by 2.5 percent and benefits by 3.1 percent.

The data comes as the Labor Department revealed that job growth in the month of September retreated to its lowest level in the past 12 months, while the unemployment rate fell to its lowest level in nearly 50 years.

Employment costs also rose in Q3, up 0.8 percent for the period, ahead of the estimate of 0.7 percent Wall Street economists projected, a sign that more inflation is ahead. To combat increased employment costs, employers have been looking to non-salary measures like insurance and benefits packages to retain workers, but may have to start increasing wages to attract and retain talent going forward. That followed a 2.9 percent gain in the year to June.

Americans boosted their spending by the most in almost four years in the July-September quarter.

The unemployment rate is forecast unchanged at a near 49-year low of 3.7 percent in October.

Encomienda a Samaniego, concluir aeropuerto de Santa Lucía en 36 meses
La designación fue dada a conocer esta tarde por Javier Jiménez Espriú , perfilado como próximo secretario de Comunicaciones y Transportes.

Private sector wages and salaries rose 0.8 percent in the third quarter after increasing 0.6 percent in the prior period. The ECI is widely viewed by policymakers and economists as one of the better measures of labor market slack.

But the acceleration in employment growth was likely tempered by Hurricane Michael, which struck Florida in mid-October.

A measure of US consumer confidence, released Tuesday, rose in October to a almost two-decade high. He added that the gains are a "testimonial to the robust employment picture is the broad-based gains in jobs across industries". It is also considered a better predictor of core inflation. The Conference Board, which produces the gauge, attributed the positive assessment to a strong labor market. The 3.1 percent annual gain in education and health services was the biggest in a decade, and transportation and warehousing pay got a 4.3 percent boost over the past year, the most since the three months ending September 2002.

Economists and investors expect the Fed to continue gradually raising interest rates, including a December increase that would be the year's fourth.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. This article is strictly for informational purposes only. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

Compartir