U.S. employment costs’ year-over-year increase in Q2 is its fastest in almost 10 years.
At 2.8%, the year-over-year growth in employment cost index, as released by the U.S. Labor Department, is the most since Q3 2008. Wages and salaries increased 2.8% year-over-year - again the fastest pace since Q3 2008. Benefits costs climbed 2.9%, the most since Q4 2011.
Demand for labor increased particularly in the manufacturing, construction and service-related industries. Employment costs for manufacturers rose 2.9%, while that for construction and private service providers went up by 3% and 2.9% respectively - on a year-over-year basis.