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Employment Cost Trends
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What Is the Employment Cost Index?

The Employment Cost Index, or ECI, is a Principal Federal Economic Indicator that provides data on how labor costs are changing and how the economy is performing. The ECI measures changes in labor costs by tracking the cost of employees to employers.

How the Employment Cost Index Is Used

The Employment Cost Index, or ECI, measures changes in the cost of employees to employers over time. In the private sector, business owners and human resources professionals can use the ECI to make decisions about pay adjustments to help them stay competitive. In the public sector, the Federal Reserve and others use the ECI to gauge the health of the labor market, adjust contracts, and research the labor market.

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