Thu, Nov 26 2009
|
|
Published October 30, 2009 08:48 am - Employment costs rose by the smallest amount on record in the 12 months ending in September, as high unemployment restrained wage and benefit growth. Employment costs rise at slowest pace since 1982WASHINGTON (AP) — Employment costs rose by the smallest amount on record in the 12 months ending in September, as high unemployment restrained wage and benefit growth.
The data shows that employers face little pressure to raise pay, even as the economy recovers. The weak labor market makes it difficult for people with jobs to demand higher pay and benefits. The Labor Department said Friday that the cost of wages, health care and other benefits increased by 1.5 percent in the year ending in September, the smallest increase since such records began in June 1982. That’s down from a 2.9 percent rise in the 12 months ending in September 2008, and lower than the 1.8 percent yearly increase reported in the second quarter. The department’s Employment Cost Index rose by a seasonally adjusted 0.4 percent in the July-September quarter, the same increase as the second quarter. That matched analysts’ expectations. Economists monitor the index for signs that rising wages could push up inflation, but few analysts see any sign of that happening. Many economists believe that the Federal Reserve will not begin worrying about inflation and the need to boost interest rates until the unemployment rate begins to drop. The Commerce Department said Thursday that the economy grew at a 3.5 percent pace in the third quarter, snapping a record streak of four straight quarterly declines. But the economy isn’t growing quickly enough to spur much hiring. The unemployment rate reached 9.8 percent in September, a 26-year high, and many economists expect it to peak above 10 percent early next year. The recession also has caused many companies to cut wages and benefits. The department’s report said that private-sector wages and salaries rose by 1.4 percent in the year ending in September, the smallest increase on record. But the report showed that health care costs for employers is rising. The cost of health benefits increased by 4.7 percent in the 12-month period, more than the 3.9 percent rise in the year ending in September 2008. 
![comment on this story](http://community.cnhi.com/eve/ubb.x?a=dl&f=55410432
&x_id=local_story_303084807.html&x_subject=+<img+src="+http://www.joplinglobeonline.com/images/zope/friday.gif"+border=0>+++Employment+costs+rise+at+slowest+pace+since+1982&x_link=http://www.joplinglobe.com/dailybusiness/local_story_303084807.html)
•
Click to discuss this story with other readers on our forums.
More from the Business section
|
Print this story
E-mail this story
Post to del.icio.us
Americans search for cheaper Thanksgiving trips
Watch the day's top business stories unfold
 |
 |
: Special Offer For New Subscribers
:
 |
|||||||
|
|||||||
 |
|
|
Published by Newspaper Holding, Inc. 117 East Fourth Street, Joplin, MO 64801 Using our site is your agreement to the terms and conditions. News: news@joplinglobe.com • (417)623-3480 Advertise with the Joplin Globe Copyright © 2006 The Joplin Globe, Joplin, MO All rights reserved. 
|
Popular Business directory links - Joplin Apartments | Joplin Attorneys | Joplin Auto Dealers | Joplin Auto Parts | Joplin Auto Repair | Joplin Beauty Salons | Joplin Car Rental | Joplin Dentists | Joplin Doctors | Joplin Flowers | Joplin Hotels | Joplin Insurance | Joplin Loans | Joplin Mortgages | Joplin Movers | Joplin Pizza | Joplin Realtors | Joplin Restaurants | Joplin Storage | Joplin Tax Preparation | Joplin Travel | Joplin Featured | More...
|
|
Community Newspaper Holdings, Inc. • CNHI Classified Advertising Network • CNHI News Service |
![Add a comment on this story](http://www.joplinglobeonline.com/zope/add_comment.php?section_id=dailybusiness&story_id=local_story_303084807.html&headline= <img src=" http://www.joplinglobeonline.com/images/zope/friday.gif" border=0> Employment costs rise at slowest pace since 1982&portal_url=http://www.joplinglobe.com&portal=joplinglobe){kind=link}