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Updated · Bloomberg · Oct 30US Employment Costs Fall 0.4% After Inflation for Second Straight Quarter
3 articles · Updated · Bloomberg · Oct 30Summary
- Inflation-adjusted US employment costs fell 0.4% in the 12 months through September, according to Bureau of Labor Statistics data released Friday.
- That marked a second straight quarter in which labor costs lagged inflation, showing pay and benefits failed to keep up with rising prices.
- The decline in the employment cost index adds to evidence that inflation is still squeezing household budgets even as nominal compensation rises.
Insights
If pay is rising, why are U.S. workers still losing ground to inflation for a second straight quarter? Is the real wage squeeze now spreading beyond high-cost cities into places once considered affordable?