US Employment Costs Slightly Above Forecasts

Compensation costs for civilian workers in the United States rose by 0.9% in the second quarter of 2026, the same as in the previous period, slightly above forecasts of a 0.8% rise. Wages and salaries increased 0.9% (vs 0.8% in Q1) and benefits rose at a faster pace of 1% (vs 1.2%). Compensation costs for private industry workers grew 0.9%, the same as in Q1, and for state and local government workers grew 1%, also the same as in Q1. On an annual basis, employment cost growth remained unchanged from the last period at 3.4%.

Compensation costs for civilian workers in the United States rose by 0.9% in the first quarter of 2026, after a 0.7% increase in the previous period, slightly above forecasts of a 0.8% rise. Wages and salaries increased 0.8% (vs 0.7% in Q4 2025) and benefits rose at a faster pace of 1.2% (vs 0.8%), the highest level in five months. Compensation costs for private industry workers grew 0.9%, from 0.7% in Q4 2025, and for state and local government workers grew 1%, from 0.8% in the previous quarter. On an annual basis, employment cost growth remained unchanged from the last period at 3.4%.

Compensation costs for civilian workers in the United States went up by 0.7% in Q4 2025, the least since Q2 2021, after a 0.8% increase in the prior period, amid softer demand for labor. Figures came in slightly below market forecasts of a 0.8% rise. Wages and salaries increased 0.7% and benefit costs rose 0.7% from the September quarter of 2025. Compensation costs for private industry workers were up 0.7% (vs 0.8% in Q3), and those for state and local government workers advanced by 0.8% (vs 0.8%). Year-on-year, employment costs rose by 3.4%, after a 3.5% growth in Q3.