EmailEmployment costs increased 0.7% in the second quarter of 2011 after increasing 0.6% in the first quarter. The Briefing.com consensus expected employment costs to increase 0.5%. The increase in compensation was due to an increase in benefit costs. Benefit spending increased 1.3% in Q2 2011 after increasing 1.1% in the first quarter. Growth of wages and salaries remained at 0.4% for the third consecutive quarter.
Private compensation increased 0.8% in the second quarter after increasing 0.5% in the first. Growth in both wages (0.5% vs. 0.4%) and benefits (1.6% vs. 1.2%) contributed to the surge in private compensation. State and local government compensation increased 0.4%, down from 0.5% in the first quarter. The relative softness in government compensation costs was caused by a drop off in benefits spending (0.5% vs. 0.9%).
