U.S. Employment Costs Rise More Than Forecast as Pay Jumps

U.S. Employment Costs Rise More Than Forecast as Pay Jumps”

According to a Reuters survey of economists, NFPs may have rebounded by 190,000 jobs in October after Florence depressed restaurant and retail payrolls in September.

The surge in wages lifted the Employment Cost Index, the broadest measure of labor costs, which increased 0.8 percent in the third quarter after rising 0.6 percent in the second quarter.

Wages and salaries rose 0.9%, and benefit costs - which include health coverage, retirement benefits and paid leave - advanced 0.4%.

That is the biggest increase - not adjusted for inflation - since the year that ended in September 2008, when wages rose 3.1 percent.

Following a robust third fiscal quarter, wages and salaries in the USA are up by 0.9 percent this month so far - 3.1 percent this year - which is the highest level in a decade. That could lower the government's employment count when it's released Friday. Although this is good news for employees, the Federal Reserve has been raising rates in a speedy fashion to guard against future inflationary pressures, seemingly erasing big salary and hourly payroll gains. There were a record 7.1 million job openings in the economy in August, compared with only some 6.2 million unemployed. The Paychex IHS Markit Small Business Employment Watch report for October again reflects a tight labor market, a slight dip in hiring, and an uptick in wages. Payrolls rose by 134,000 jobs in September, the smallest gain in a year, after Hurricane Florence drenched North and SC, weighing on restaurant and retail employment. That followed a 2.9 percent gain in the year to June.

The labor force participation rate, or the proportion of working-age Americans who have a job or are looking for one, rose to 62.9 percent last month from 62.7 percent in September.

The Fed is not expected to raise rates at its policy meeting next week, but economists believe October's strong labor market data could see the US central bank signal an increase in December.

Workers at United States Steel Corp X.N are set to receive a hefty pay rise also. The Conference Board, which produces the gauge, attributed the positive assessment to a strong labor market. They advanced 2.6 percent from a year earlier, compared with 2.9 percent in the second quarter.

Economists say his policies deserve some credit for triggering faster growth, but unemployment has been falling steadily for eight years and wages have been inching higher.

The jobs market is viewed as being close to or at full employment. Many economists expect that will be above 3 percent for the first time since April 2009.

That is seen supporting the economy through at least early 2019 when gross domestic product is expected to significantly slow as the stimulus from the Trump administration's $1.5 trillion tax cut package fades. Construction and manufacturing added 17,000, respectively. The service sector contributed 189,000 to the total.

Like this



03 November 2018
WhatsApp might soon show targetted ads in the Status section
What do you think about ads in Status and Stories? Some reports claim that they will be released early next year. Doing this, the company will get into a primary monetization mode and also allowing businesses to reach people.

03 November 2018
Blizzard Just Pi**ed off Their Fans with Diablo Immortal Mobile
The announcement came with its own cinematic short, showcasing the story for those who might have forgotten what happened. Blizzard has revealed Diablo Immortal , a new game in the Diablo franchise created for mobile devices.

03 November 2018
India factory output growth hits four-month high in October
The IHS Markit/CIPS UK Manufacturing PMI , slumped from 53.6 in September to 51.1 in October , its lowest since July 2016. A number above the 50.0 level indicates industry expansion while a number below is consistent with contraction.

03 November 2018
Brazil's New President-Elect Vows to Move the Country's Embassy to Jerusalem
Bolsonaro, 63, who won a runoff election on Sunday, has outraged many with his overtly misogynistic and racist rhetoric. This is the first time since his election that Bolsonaro has announced his plan to move the embassy.

03 November 2018
Early Voting Totals in 19 States Have Already Surpassed 2014 Midterm Turnout
Unaffiliated voters have already surpassed the total number of early votes cast in 2014, making up about 26% of the early vote. More than 16 percent of voters to date have Spanish surnames, a higher share than in any previous midterm election.

03 November 2018
Record: So close yet no probe was in the sun
Eric Christian, a space scientist at NASA's Goddard Space Flight Center, told UPI last month ahead of the probe's launch. In the next seven years Parker Solar Probe will beat your own records and will be 6.16 million kilometers from the sun.

03 November 2018
Woman found 6 days after crash near Wickenburg, DPS says
She said she remained in the vehicle for several days, until attempting to walk over to some railroad tracks to seek help. As they stood by the damaged fence they noticed the auto in the tree and called the emergency services.

03 November 2018
One month on, where is Khashoggi's body?
Cengiz praised Turkey's investigation efforts and called on the United States to lead the way to bring perpetrators to justice. Turkey is seeking the extradition of 18 suspects who were detained in Saudi Arabia so they can be put on trial in Turkey.

03 November 2018
Oil Prices Leap After 3 Days Of Sliding
In a commodities update report from Capital Economics , the outlook for a stronger oil price was less than enthusiastic. However, with last week's increase turning out to be less than expected, oil's fall was somewhat limited.

03 November 2018
Diablo III-Themed Loot Goblin amiibo Revealed
A new Diablo game has been announced, developed by NetEase in partnership with Blizzard and it's exclusive to mobile devices. It may not be the Diablo fans were expecting, but could potentially keep fans entertained until Diablo 4's eventual release.