Employment costs grew above expectations

Strengthening job market prompts employers to pay more

Employment costs grew faster than forecast in the second quarter, as the employment cost index climbed 0.5%, an article in Bloomberg said.

Additionally, the article noted that the increase was more than the 0.4% median estimate of 42 economists in a Bloomberg survey. 

The strengthening job market could be prompting employers to pay more, increasing costs, the article explained.

"The labor market is improving, it’s improving very slowly," Kevin Harris chief economist at Informa Global, said. "That would be the driver in an increase in employment costs. But you would expect those costs to go up slowly."

 

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