Wage Growth Slows in Q4 as Labor Costs See Smallest Rise in 2.5 Years
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Employee costs rose 0.9% in Q4 2022, the smallest increase in 2.5 years, indicating slowing wage growth.
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Compensation increased 4.2% over the last 12 months ending December, down from over 5% earlier in 2022.
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Wage and salary costs rose 0.9% in Q4; 12-month increase was 4.3%, down from the prior quarter.
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Benefit costs rose 0.7% in Q4; 12-month increase slowed to 3.8% from 4.2% last quarter.
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Employment Cost Index is seen as the most reliable measure of labor costs, made up of about 70% wages and 30% benefits.