Highlights
The employment cost index rose 0.4 percent in the second quarter, up from a 0.3 percent rise in the first quarter. But the year-on-year rate of increase eased, to 1.8 percent from the first quarter's 2.1 percent. Surprisingly, pressure in the second quarter, despite a weak labor market, was in wages & salaries, up 0.4 percent vs. the first quarter's 0.3 percent. Benefits, which were expected to show pressure, eased to an increase of 0.3 percent vs. an increase of 0.5 percent in the first quarter. Though wages & salaries show some pressure, labor costs remain subdued evident in the private industry component which rose only 0.2 percent in the quarter for an on-year increase of 1.5 percent, the smallest since the series began in 1980.

Market Consensus Before Announcement
The employment cost index for civilian workers in the first quarter eased to a 0.3 percent quarter-to-quarter rise in the main index after a 0.6 percent boost the prior quarter. The first quarter increase was the smallest quarterly rise in the history of this index going back to the start of 1982. The year-on-year rate was also at a record low of 2.1 percent. Based on the latest average hourly earnings data from the employment report, employment cost inflation should remain low in the second quarter also.

2009 Release Schedule

Released On: 1/30 4/30 7/31 10/30 Released For: Q4:08 Q1:09 Q2:09 Q3:09