Rise in Benefits Drives Increase in U.S. Labor Costs in First Quarter
U.S. labor costs rose by 0.9% in the first quarter of 2026, driven by an increase in benefits, though wage growth remained moderate. The Employment Cost Index (ECI) exceeded expectations, with benefits rising 1.2% and contributing to a 3.6% annual increase. Despite the rise in labor costs, the labor market is not seen as a major inflation driver due to slowing job growth.
Topics: benefits economic data Federal Reserve inflation labor costs wages