Employment costs rise 1.8% in past 12 months
WASHINGTON — Employment compensation for U.S. workers has grown over the past 12 months by the lowest amount on record, reflecting the severe recession that has gripped the country.
The Labor Department said today employment costs rose by 1.8 percent for the 12 months ending in June, the smallest annual gain on records that go back to 1982.
The department said that for the April-June quarter, its Employment Cost Index rose by just 0.4 percent, just slightly above the 0.3 percent rise in the first quarter, which had been the smallest quarterly gain on record.
Companies, struggling to cope during the current hard times, have been laying off workers, trimming wage gains and holding down overtime to save costs.
Benefits, which include such things as health insurance and contributions to pension plans, also rose by 1.8 percent during the past year, the lowest annual gain in this category since a similar increase during the 12 months ending in September 1997.
In a separate report, the Commerce Department said today the overall economy sank at an annual rate of 1 percent in the April-June quarter, an indication the severe recession is beginning to hit bottom. The economy had tumbled at a 6.4 percent pace in the first three months of the year.
