The Employment Cost Index (ECI) is a quarterly economic indicator produced by the U.S. Bureau of Labor Statistics (BLS). It is designed to measure the change in the cost of labor for businesses over time. The ECI is based on a survey of employers and measures the costs of wages, salaries, and employee benefits, including health insurance, retirement plans, and other benefits.
The ECI is considered an important measure of labor costs, and it can provide insights into inflation and wage pressures in the economy. Higher labor costs can lead to higher prices for goods and services, as businesses may pass on these costs to consumers. The ECI is also useful for tracking changes in compensation over time, and can provide insights into trends in employee benefits and working conditions.
The ECI is calculated as a percentage change from a base period, and is seasonally adjusted to account for fluctuations in employment and other factors that can affect labor costs. The ECI is widely used by economists, policymakers, and investors to track trends in labor costs, and is often used in conjunction with other economic indicators, such as the Consumer Price Index (CPI), to get a more complete picture of the overall state of the economy.
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