US wages and benefits up 0.7 per cent in Q4

WASHINGTON – U.S. workers saw their annual wages and benefits rise by 0.7 per cent in the final three months of last year, a moderate gain that was down only slightly from the third quarter.

The Labor Department says that the seasonally adjusted October-December gain was down from a 0.8 per cent rise in the third quarter.

Over the past 12 months, wages and benefits are up 2.9 per cent, an improvement from a 12-month gain of 2.8 per cent in the 12 months ending in September.

Wages and salaries, which make up 70 per cent of employment costs, were up 3.1 per cent for the 12 months ending in December while benefits such as health insurance and pension contributions rose by 2.8 per cent.

Analysts said the moderate gains were not threatening to trigger unwanted inflation pressures.