Employment Cost Index: U.S. wages are up, but not keeping up with inflation
It appears workers are getting paid more but inflation may have them feeling like they are getting paid less. The Bureau of Labor Statistics released its quarterly employment cost index Friday.
The index showed wages are increasing but they are not keeping up with inflation. Wages and salaries for workers rose 1.3 percent in the third quarter, and over 5 percent on the year ending in September.
That’s when you don’t add in inflation.
When the numbers are adjusted for rising prices, wages and salaries have actually declined 3 percent over the year. The costs for employers are also rising.
Paying for wages and benefits cost employers over one percent more in the third quarter, not accounting for inflation.