WASHINGTON (AP) — Employment costs have risen by the smallest amount on record in the year ended in September, as high unemployment is keeping a lid on wage and benefit growth.
The data shows that employers face little pressure to raise pay, even as the economy recovers. The weak labor market makes it difficult for people with jobs to demand higher pay and benefits.
The Labor Department said Friday that the cost of wages, health care and other benefits increased by 1.5 percent in the 12 months ending in September. That is the smallest increase since records of that data have been kept starting in June 1982.
The rise is down from a 2.9 percent advance in the 12 months ending in September 2008.
The department's Employment Cost Index rose by a seasonally adjusted 0.4 percent in the July-September quarter, matching analysts' expectations.
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