U.S. labor costs rise solidly; wage growth picks up

Source: Reuters

(Reuters) - U.S. labor costs rose solidly in the first quarter as wages in the private sector increased, which could keep the Federal Reserve on track to raise interest rates this year.

The Employment Cost Index, the broadest measure of labor costs, advanced 0.7 percent - the largest gain since the third quarter of 2014 - after an unrevised 0.5 percent rise in the fourth quarter, the Labor Department said on Thursday.

Economists polled by Reuters had forecast the employment cost index rising 0.6 percent in the January-March period.

The ECI is widely viewed by policymakers and economists as one of the better measures of labor market slack.

FULL story at link.



Read more: http://www.reuters.com/article/2015/04/30/us-economy-costs-idUSKBN0NL1KJ20150430