Employment Cost Index
The Employment Cost Index (ECI) is a measure of the total compensation paid to employees for their work, including wages and salaries, as well as benefits. It is a key economic indicator used to assess changes in labor costs over time. The ECI is often used by policymakers, economists, and analysts to understand trends in compensation and to gauge inflationary pressures in the labor market.
The index is calculated by comparing the current cost of a fixed basket of employment benefits and wages to the cost of that same basket in a reference base year. It provides insights into how wages and benefits are changing, offering a comprehensive view of labor market conditions.