U.S. labor costs increased in the third quarter as a tightening labor market lif...
FILE PHOTO: People look at Deere equipment as they attend National Farm Machinery show in Louisville, Kentucky, February 11, 2016. REUTERS/Meredith Davis/File Photo
The Employment Cost Index, the broadest measure of labor costs, increased 0.7% after rising 0.6% in the second quarter. That raised the year-on-year rate of gain in the ECI to 2.8%. Labor costs advanced 2.7% on a year-on-year basis in the second quarter.The ECI is widely viewed by policymakers and economists as one of the better measures of labor market slack. It is also considered a better predictor of core inflation.
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