WASHINGTON – The wages and benefits paid to U.S. civilian workers rose at a steady pace in the second quarter compared to the first three months of the year, as income growth showed signs of slight acceleration.
The Labor Department says total compensation increased 0.6 per cent from April to June, matching the pace of the prior three months. Over the past 12 months, employment costs have risen 2.3 per cent, up from the annual pace of 2 per cent a year ago.
For private industry, most of the growth has come in the form wages and salaries that account for 70 per cent of compensation costs. But for state and local government workers, the increase largely resulted from greater spending on benefits.
Despite the moderate increase, employment costs still indicate minimal inflation pressures.