Live Markets: Employment cost growth cools in Q3

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30/10/2026 14:54

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EMPLOYMENT COST GROWTH COOLS IN Q3
The Labor Department's employment cost index USEMPC=ECI rose by 0.8% in the third quarter on a quarterly annualized basis, a tad cooler than Q2's 0.9% growth rate and hitting the consensus nail on the head.
Wages and benefit costs grew by 0.7% and 0.9%, respectively, marking a slight cooldown from the prior quarter.
"The Fed has signaled that labor costs are no longer a source of inflation risk," writes Carl Weinberg, chief economist at High Frequency Economics. "Today’s numbers ratify that judgment."
"Wage increases exceed price increases over the 12 most recent months," Weinberg adds. "That suggests that consumer spending can continue to grow."
This report—in combination with next week's JOLTS, jobless claims, ADP and Challenger layoffs—is prologue to the Labor Department's October employment report due a week from today, which is expected to show the US economy added 65,000 jobs this month, with the unemployment rate standing pat at 4.2%.
(Stephen Culp)
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EARLIER ON LIVE MARKETS:
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EarlyTrade10302026 https://fingfx.thomsonreuters.com/gfx/buzz/dwpkmmxldpm/EarlyTrade10302026.png
Employment cost index and job openings https://www.reuters.com/graphics/USA-STOCKS/byvraagnape/ECI.png
(Terence Gabriel is a Reuters market analyst. The views expressed are his own )