Saturday, March 14, 2009

Employment Cost Index (Chart)

The Employment Cost Index (ECI) measures whether employment costs are rising or falling. This is a vital measure of inflation/deflation of wages and employer-paid benefits. This is also a key component in the overall measure of future inflation. A rising indicator is worrisome, a falling indicator means labor cost are being contained.

As you can see from the chart below, labor costs are dropping rather dramatically.
Source: Bureau of Labor Statistics, Department of Labor
Subscribe to All American Investor via Email