US employment costs surged more than expected in Q3. Up 0.8% QoQ, as increases in private wages and salaries accelerated, perhaps signaling that workers are gaining leverage in a tightening labor market.
Wages & Salaries rose 0.9% QoQ as benefits slowed.
On a year-over-year basis, Q3 is up 2.8%, the biggest annual jump since Q3 2008.... Government wages rose 2.3% YoY vs Private Workers 3.1% YoY gain.
As Bloomberg notes, the government's quarterly ECI reading - which covers employer- paid taxes such as Social Security and Medicare in addition to the cost of wages and benefits - offers a glimpse at how American workers are being compensated.
The latest reading shows momentum in worker compensation ahead of October wage figures due in Friday's monthly employment report.
With the world's equity market bulls hoping for weak economic data to give The Fed an excuse to pause its 'normalization', this data crushes that hope.
https://www.zerohedge.com/news/2018-10-31/us-employment-costs-soar-fastest-pace-decade
Following September's big disappointment in BLS data, October saw no relenting in ADP's exuberance with a better than expected +227k.
September's +229k spike was revised down to +218k making October's +227k print the best since February.
Under the hood, small business rose the least with no cohorts seeing net job losses.... "Despite a significant shortage in skilled talent, the labor market continues to grow," said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute.
"We saw significant gains across all industries with trade and leisure and hospitality leading the way. We continue to see larger employers benefit in this environment as they are more apt to provide the competitive wages and strong benefits employees desire."
"The job market bounced back strongly last month despite being hit by back-to-back hurricanes. Testimonial to the robust employment picture is the broad-based gains in jobs across industries. The only blemish is the struggles small businesses are having filling open job positions."
If projecting today's ADP data on to Friday's BLS payrolls print, bear in mind that last month was the biggest variance since Sept 2015.....
https://www.zerohedge.com/news/2018-10-31/adp-employment-jumps-most-8-months-small-business-struggles
Wages & Salaries rose 0.9% QoQ as benefits slowed.
On a year-over-year basis, Q3 is up 2.8%, the biggest annual jump since Q3 2008.... Government wages rose 2.3% YoY vs Private Workers 3.1% YoY gain.
As Bloomberg notes, the government's quarterly ECI reading - which covers employer- paid taxes such as Social Security and Medicare in addition to the cost of wages and benefits - offers a glimpse at how American workers are being compensated.
The latest reading shows momentum in worker compensation ahead of October wage figures due in Friday's monthly employment report.
With the world's equity market bulls hoping for weak economic data to give The Fed an excuse to pause its 'normalization', this data crushes that hope.
https://www.zerohedge.com/news/2018-10-31/us-employment-costs-soar-fastest-pace-decade
ADP Employment Jumps Most In 8 Months, Small Business Struggles
September's +229k spike was revised down to +218k making October's +227k print the best since February.
Under the hood, small business rose the least with no cohorts seeing net job losses.... "Despite a significant shortage in skilled talent, the labor market continues to grow," said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute.
"We saw significant gains across all industries with trade and leisure and hospitality leading the way. We continue to see larger employers benefit in this environment as they are more apt to provide the competitive wages and strong benefits employees desire."
"The job market bounced back strongly last month despite being hit by back-to-back hurricanes. Testimonial to the robust employment picture is the broad-based gains in jobs across industries. The only blemish is the struggles small businesses are having filling open job positions."
If projecting today's ADP data on to Friday's BLS payrolls print, bear in mind that last month was the biggest variance since Sept 2015.....
https://www.zerohedge.com/news/2018-10-31/adp-employment-jumps-most-8-months-small-business-struggles
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