Worker Pay Hits Ten Year High – Have You Benefited?

What’s the story?

• In another sign of broad-based demand for qualified workers, employee pay and benefits are climbing at their fastest pace in 10 years, according to the employment cost index (ECI).
• As Bloomberg explained:

“The government’s quarterly read on the ECI – covering employer-paid taxes such as Social Security and Medicare in addition to the cost of wages and benefits –  offers a comprehensive look at how American workers are being compensated.”

Why are wages and compensation going up?

• Because unemployment has dipped to a 18-year low of 4 percent, and an increasing number of companies are finding they can’t find enough skilled workers.

The numbers

• The ECI rose 2.8 percent for the second quarter of 2018—the biggest increase since the third quarter of 2008.
• Employers costs for health benefits increased 1.6 percent from 2017.
• Employment costs for manufacturers rose 2.9 percent from a year ago.
• Construction is up 3 percent.
• Private service providers are up 2.9 percent.

What do you think?

Are you feeling the effects of this robust wage and compensation growth? What do you credit for the economic uptick? Hit Take Action and tell your reps, then share your thoughts below.

—Josh Herman

(Illustration by Enis Aksoy / iStock)