Street Journal reported as “a surprisingly strong uptick in employment costs” that “signaled renewed inflationary pressure.” The Labor Department’s employment cost index rose 1.4% in the first quarter, an acceleration of the fourth quarter’s 1% increase and much higher than the 0.9% increase economists had forecast. The index’s 4.3% year-over-year increase was the highest in more than eight years.
But surprising? The only thing surprising to me is that the economic indicators haven’t been more reflective of robust wage increases. Everywhere I look, people are earning more for their labor and talent than a short while ago, often substantially more, and employers are beside themselves trying to fill jobs. I’m not complaining, mind you (except when I’m trying to fill reporter vacancies). This is great, so long as inflation stays in check, too.
But I don’t think the feds are measuring right.
, Rick Reiff
