employment cost index


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Employment Cost Index

An index compiled by the Bureau for Labor Statistics estimating the cost of hiring and paying the American workforce. Analysts closely monitor the employment cost index: an unexpectedly large increase may result in downward pressure in the market. This is because a rise in the cost of paying employees reduces profits, which in turn reduces stock prices. It may also reduce bond prices because rises in the ECI are seen as a harbinger of inflation.

employment cost index

A closely watched economic report by the Bureau of Labor Statistics that indicates the total cost of employing a civilian worker. A larger-than-expected increase in the index is likely to place downward pressure on both bond and equity prices.
References in periodicals archive ?
1) For a more detailed discussion of the Employment Cost Index and its uses, see John W.
A startling rise in the employment cost index has scared up some inflation concerns among investors, sending the major indices south today.
But the employment cost index prevailed in shaping investor sentiment, calming an uneasy market.
The employment cost index for private industry--a measure that includes wages and benefits--rose at an annual rate of about 3 percent over both the first three months of 1996 and over the twelve months ending in March; the ECI had also increased about 3 percent over the twelve months ending in March 199S.
Elsewhere, the Labor Department reported that the employment cost index increased 0.
Labor Department releases the first-quarter employment cost index, 8:30 a.
Despite the general increase in labor utilization, workers' compensation gains, as measured by the Employment Cost Index, have been trending down in recent years because of dramatic declines in benefit gains.
economic data will also be released later this week, including the employment cost index on Thursday and a preliminary report on gross domestic product Friday, both for the fourth quarter of 1999.
But threats of higher inflation - most notably last week's higher-than-expected showing of the Employment Cost Index - have prompted fears the Federal Reserve Board will raise interest rates.
The employment cost index for private industry workers rose more rapidly in the second quarter after a sharp slowing in the first quarter, with the acceleration in compensation largely reflecting a pickup in wage and salary growth.
The Labor Department also announced that the employment cost index rose by 0.
WASHINGTON -- Labor Department releases the third-quarter employment cost index, 8:30 a.
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