U.S. Wage Growth Falls to Record-Slow Pace in 2nd Quarter
Source: Associated Press, via the New York Times
By THE ASSOCIATED PRESS JULY 31, 2015, 8:52 A.M. E.D.T.
WASHINGTON — U.S. wages and benefits grew in the spring at the slowest pace in 33 years, stark evidence that stronger hiring isn't lifting paychecks much for most Americans. The slowdown also likely reflects a sharp drop-off in bonus and incentive pay for some workers.
The employment cost index rose just 0.2 percent in the April-June quarter after a 0.7 increase in the first quarter, the Labor Department said Friday. The index tracks wages, salaries and benefits. Wages and salaries alone also rose just 0.2 percent. ... Both measures recorded the smallest quarterly gains since the second quarter of 1982.
Salaries and benefits for private sector workers were unchanged, the weakest showing since the government began tracking the data in 1980.
The disappointing figures come after the index had been pointing to a pickup in wage growth after nearly two years of steady hiring. The index rose just 2 percent in the second quarter compared with a year earlier. That is down from a 2.6 percent increase in the first quarter, which was the biggest in nearly seven years.
Read more: http://www.nytimes.com/aponline/2015/07/31/us/politics/ap-us-employments-costs.html
Hat tip, MarketWatch: Sharp deceleration in employment costs gives Fed a reason to delay rate hike
Published: July 31, 2015 8:56 a.m. ET
One of the most closely watched measures of labor costs decelerated sharply in the second quarter, suggesting the Federal Reserve can be patient and allow the labor market more time to heal before hiking interest rates.
The wages and benefits that companies, governments and nonprofit institutions pay their employees rose a record-low 0.2% in the second quarter, according to the employment cost index released by the Labor Department on Friday. That was well below the 0.7% gain in the first quarter and came as a surprise to economists surveyed by MarketWatch, who had expected a 0.6% gain.
The slowdown comes after first-quarter data had suggested wage growth had picked up perceptibly from the stagnant trend of several years.
Sustained gains in the employment cost index would signal that workers would boost their spending, which could spur growth and more hiring. It could also signal that inflation would move higher, although this is a point of debate among economists.
Compensation costs little changed at 0.2% Mar-Jun 2015 and 2.0% over the year ending June
There are thirteen tables in this. There goes the weekend, for some of you.
Employment Cost Index news release text
USDL-15-1486
TRANSMISSION OF MATERIAL IN THIS RELEASE IS EMBARGOED UNTIL
8:30 A.M. (EDT) FRIDAY, JULY 31, 2015
Technical information: (202) 691-6199 ncsinfo@bls.gov www.bls.gov/ect
Media contact: (202) 691-5902 pressoffice@bls.gov
EMPLOYMENT COST INDEX - JUNE 2015
Compensation costs for civilian workers was little changed at 0.2 percent, seasonally adjusted, for the 3-month period ending June 2015, the U.S. Bureau of Labor Statistics reported today. Wages and salaries (which make up about 70 percent of compensation costs) was also little changed at 0.2 percent, and benefits (which make up the remaining 30 percent of compensation) was little changed at 0.1 percent. (See chart 1 and tables 1, 2, and 3.)
Civilian Workers
Compensation costs for civilian workers increased 2.0 percent for the 12-month period ending June 2015, unchanged from the 12-month period ending June 2014. Wages and salaries increased 2.1 percent for the current 12-month period. In June 2014 the change was 1.8 percent. Benefit costs increased 1.8 percent for the 12-month period ending June 2015. In June 2014 the increase was 2.5 percent. (See chart 2 and tables 4, 8, and 12.)
Private Industry Workers
Compensation costs for private industry workers increased 1.9 percent over the year, about unchanged from the previous year when the increase was 2.0 percent. Wages and salaries increased 2.2 percent for the current 12-month period. The increase for the period ending June 2014 was 1.9 percent. The increase in the cost of benefits was 1.4 percent for the 12-month period ending June 2015. This was lower than a year earlier when the increase was 2.4 percent. (See charts 3 and 4 and tables 5, 9, and 12.) Employer costs for health benefits increased 2.8 percent over the year. In June 2014 the increase was 2.7 percent. (For further information, see www.bls.gov/web/eci/echealth.pdf.)
Among occupational groups, compensation cost increases for private industry workers for the 12-month period ending June 2015 ranged from 1.7 percent for natural resources, construction, and maintenance occupations to 2.5 percent for production, transportation, and material moving occupations. (See table 5.)
Among industry supersectors, compensation cost changes for private industry workers for the current 12-month period ranged from -1.6 percent for information to 2.5 percent for manufacturing. (See table 5.)
BLS Twitter feed
BLS press release, Employment Cost Indes - June 2015
This is chock full of charts, which I think will be compiled and released later today on the Twitter feed. I will update when that happens.
Information in this release will be made available to sensory impaired individuals upon request—Voice phone: (202) 691-5200; Federal Relay Service: (800) 877-8339.
BLS news releases, including the ECI, are available through an e-mail subscription service at: www.bls.gov/bls/list.htm.
= new reply since forum marked as read
already working with elementary students - that seems about the right developmental level for that. 
