Unemployment Rate Lowest in 5 1/2 Years [BUMPED UP FROM 2006]

U.S. employment costs up 0.9% in quarter
Wages jump 0.9%, highest quarterly rate in three years


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WASHINGTON (MarketWatch) -- U.S. compensation costs rose 0.9% in the second quarter, more than economists' expectations, the Labor Department said Friday.
It was the biggest gain in the employment cost index since the first quarter of 2005. Read full government report.

The rise was above expectations. Economists surveyed by MarketWatch had been looking for a 0.8% increase in the employment cost index, considered one of the best measures of labor-cost pressures -- and one closely followed by Federal Reserve policymakers. See Economic Calendar.

Wage and salaries rose 0.9% in the second quarter, on the heels of increasing by 0.7% in the first quarter. This was the largest increase since the first quarter of 2003.

Benefits rose 0.8% in the second quarter, up from a 0.5% rise in the first quarter.

Calculated out over the past year, employment costs have increased 3.0%, up from 2.8% in the first quarter. Wages and salary costs have increased 2.8% in the past year, up from growth of 2.7% in the first quarter. Benefit costs increased 3.4% in the second quarter, the same pace as the first quarter.
http://www.marketwatch.com/news/story/61f1rGbMGGBFN08gCWpXrNZ?siteid=siteid&dist=RNPullDown
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