| Definition:
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A measure of total compensation in the form of wages, salaries and benefits, paid by employers to employees. ECI is the broadest calculation of labor cost and is updated quarterly.
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| Meaning:
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The ECI is analyzed for wage trends (increasing or decreasing compensation costs). The Federal Reserve watches this indicator closely for signs of wage inflation because increasing wages may be passed along as higher prices.
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| Weight:
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****
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| Source:
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U.S. Department of Labor: Bureau of Labor Statistics
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| Availability:
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Report released 3-4 weeks following the reference quarter
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| Frequency:
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Quarterly
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| Coverage:
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1 Month Lag Factor (Data for 1Q is released in 2Q)
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| Volatility:
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Very Moderate
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Impact on the Markets:
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| Interest Rates:
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Employment Cost Index  = Interest Rates
Employment Cost Index  = Interest Rates
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| Fixed-income:
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Employment Cost Index = Bonds
Employment Cost Index = Bonds
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| Equities:
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Employment Cost Index = Stocks
Employment Cost Index = Stocks
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| Dollar:
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Employment Cost Index = Uncertain
Employment Cost Index = Uncertain
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| More Information:
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U.S. Department of Labor: Bureau of Labor Statistics
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