US Labor Costs Slow in 3rd Quarter as Wage Gains Trend Lower

Data signal further wage-growth deceleration ahead.

An employee helps a customer at a Chipotle restaurant in San Rafael, Calif., on April 1, 2024. Justin Sullivan/Getty Images

Compensation costs for workers slowed in the three months ending in September as wage pressures continued to ease.

The employment cost index (ECI)—a broad measurement of labor costs closely followed by the Federal Reserve—rose by 0.8 percent in the third quarter, down from 0.9 percent in the previous three-month period, according to the Bureau of Labor Statistics.