Employment costs in the United States rose more than expected in the first three months of the year, the highest statistical growth in the quarter. Concerns over persistent inflation are expected to force US monetary authorities to tighten policy tightening.
| Key Point |
|---|
|
Year-on-year changes in the employment cost index (upper), year-on-year changes in the index (lower)
Source: Labor Statistics Bureau
From January to March, compensation increased in a wide range of industries, including manufacturing and services.
Wages and salaries of non-military workers increased by 4.7% year-on-year, which is also a statistically high record. Allowances increased by 4.1%. Wages and salaries in the private sector, excluding the government sector, increased by 5%.
The continued healthy growth in employment costs highlights that rising wages are an important factor in inflation formation. If this situation persists, pressure will continue on US financial authorities for a more aggressive approach. Federal Reserve Chairman Jerome Powell said in March that the current pace of wage growth is inconsistent with the 2% inflation target.
“If productivity growth doesn’t accelerate and wage growth doesn’t slow, the market is currently factoring in a rate hike of around 300 basis points (bp, 1bp = 0.01%),” said Ana Wong, an economist at Bloomberg Economics. It is likely that US monetary authorities will need more monetary tightening. “
See the table for details on statistics.
Original title:Employment Costs Surge Most Ever, Stoking U.S. Inflation Concern（抜粋）
(Add Bloomberg Economics comments to the last paragraph)
