U.S. Wages, Benefits Rose at Two-Decade High as Inflation Picked Up – WSJ

Employers spent 4% more on wages and benefits last year as workers received larger pay raises in a tight labor market, rebounding economy and period of accelerating inflation, marking an increase not seen since 2001.

The U.S. employment-cost index a quarterly measure of wages and benefits paid by employers showed that costs continued to rise at the highest rate in two decades. The fourth-quarter gain, compared with a year ago, was 4% on a non-seasonally adjusted basis, the Labor Department said Friday.

Still, the figures offered a sign that labor-cost increases could be easing, with the Labor Department reporting a seasonally adjusted 1% rise in compensation for the fourth quarter, down from with a 1.2% increase the previous three months.

via www.wsj.com