U.S. employment costs rose at the fastest pace on record in the third quarter as companies across a variety of sectors raised wages against a backdrop of labor shortages.
The employment cost index, a broad gauge of wages and benefits, rose 1.3% from the prior quarter, according to Labor Department data released Friday. The gauge increased 3.7% from a year earlier.
Although there was a record jump in wages and salaries, personal income was reported to have dropped -1.04% in September. On a YoY basis, personal income fell to a 4.15% growth rate. Even more disturbing, the Case-Shiller national home price index is still rising at a near 20% pace.