The U.S. Bureau of Labor Statistics released its Employment Cost Index for the second quarter of 2026 on July 31, showing that compensation costs for civilian workers climbed 0.9% quarter-over-quarter. Analysts had penciled in 0.8%.
What the numbers actually say
Wages and salaries grew 0.9% in Q2, matching the headline figure. Benefits rose 1.0%. Both figures beat expectations.
Total compensation is up 3.4% over the past twelve months. Wages are running at 3.2% annually. Benefits are up 3.8%.
Private industry compensation rose 0.9% quarter-over-quarter. State and local government workers saw a 1.0% increase over the same period.
