Home US: Compensation rising at the fastest pace since 2008 – NBF
FXStreet News

US: Compensation rising at the fastest pace since 2008 – NBF

According to National Bank of Canada’s analyst, Krishen Rangasamy, hiring is becoming increasingly expensive amidst a tightening labour market.

Key Quotes:

“Hiring is becoming increasingly expensive in the U.S. amidst a tightening labour market. Latest estimates from the Bureau of Labor Statistics show private sector compensation costs rising 2.9% year-on-year in the second quarter, the highest since 2008.”

“Wages and salaries, which account for 70% of compensation, also rose 2.9% (decade-high), while the cost of providing benefits rose 2.8% (a six-year high).”

“The Federal Reserve will feel vindicated in its stance to raise interest rates to address such broad based cost-push inflation pressures although mitigating factors, such as deflationary effects of the strong U.S. dollar, may have some doves on the FOMC call for restraint during the current tightening cycle.”
 

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.