US employment costs steady in the third quarter

The cost of employment in the US was steady in the third quarter of 2016.

The employment cost index advanced at a 0.6% quarter-on-quarter pace over the three months to September, in line with economists´ forecasts.

In comparison to a year ago, it rose by 2.3%, the same as in the previous quarter.

Workers´ compensation in the public sector grew faster than in the private sphere, rising at a quarterly clip of 0.9% versus a rise of 0.5% in the previous three quarters.

"On balance, the Q3 data are consistent with a return to modest (but solidifying) compensation increases after the temporary weakness in mid-2015.

"We continue to expect a gradual strengthening in wage growth this year and next, as we see the unemployment rate continuing to fall. But with overall inflation remaining muted and productivity growth slow, wage growth may have difficulty finding traction," Barclays´s Blerina Uruci said in a research note sent to clients.