This morning the BLS released its Employment Cost Index report for June 2018.

Three Month Results

Compensation costs for civilian workers increased 0.6 percent, seasonally adjusted, for the 3-month period ending in June. Wages and salaries (which make up about 70 percent of compensation costs) increased 0.5 percent and benefit costs (which make up the remaining 30 percent of compensation) increased 0.9 percent.

Year-Over-Year

Compensation costs for civilian workers increased 2.8 percent for the 12-month period ending in June 2018 compared with a compensation costs increase of 2.4 percent in June 2017. Wages and salaries increased 2.8 percent for the 12-month period ending in June 2018 and increased 2.3 percent for the 12-month period ending in June 2017. Benefit costs increased 2.9 percent for the 12-month period ending in June 2018. In June 2017, the increase was 2.5 percent.

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Once again, those are averages, we do not see the distribution of those gains, undoubtedly skewed towards the top end.

Mike "Mish" Shedlock