Compensation for workers rose to a nearly 10-year high in the second quarter as inflation pressures continued to percolate in the U.S. economy.

The employment cost index increased 0.6 percent for civilian workers in the three-month period ending in June, according to a Bureau of Labor Statistics release Tuesday. That brought the 12-month rate up to 2.8 percent, the highest level since 2.9 percent in the third quarter of 2008, amid the financial crisis and the Great Recession.

Significant wage gains have been a missing part of the economic recovery, with average hourly earnings increases barely keeping pace with inflation.

However, the ECI has been on a steady rise over the past year and a half. The index had struggled to stay above 2 percent for most of the period following the recession as the Federal Reserve kept interest rates low and inflation stayed well below historical norms. However, the index has been climbing steadily from the 2.2 percent level just prior to President Donald Trump taking office.

"With the labor market tightening, stronger wage pressures should continue to feed through into higher inflation over the rest of this year," Andrew Hunter, U.S. economist at Capital Economics, said in a note. </s> Compensation for workers rose to a nearly 10-year high in the second quarter as inflation pressures continued to percolate in the U.S. economy.

The employment cost index increased 0.6 percent for civilian workers in the three-month period ending in June, according to a Bureau of Labor Statistics release Tuesday. That brought the 12-month rate up to 2.8 percent, the highest level since 2.9 percent in the third quarter of 2008, amid the financial crisis and the Great Recession.

Significant wage gains have been a missing part of the economic recovery, with average hourly earnings increases barely keeping pace with inflation.

However, the ECI has been on a steady rise over the past year and a half. The index had struggled to stay above 2 percent for most of the period following the recession as the Federal Reserve kept interest rates low and inflation stayed well below historical norms. However, the index has been climbing steadily from the 2.2 percent level just prior to President Donald Trump taking office.

"With the labor market tightening, stronger wage pressures should continue to feed through into higher inflation over the rest of this year," Andrew Hunter, U.S. economist at Capital Economics, said in a note.

The index draws from a sample of 27,200 observations of some 6,600 private businesses as well as 8,000 observations from 1,400 government offices.

Wages and salaries rose 0.5 percent for the quarter and 2.8 percent for the 12-month period, while benefits costs increased 0.9 percent and 2.9 percent, respectively.

Private industry compensation was up 2.9 percent, a substantial rise from the 2.4 percent recorded as of June 2017. Government compensation increased 2.3 percent for the period, which actually was a pullback from the 2.6 percent gain recorded in June 2017.

Industry-wise, sales and related jobs recorded a 3.5 percent gain while transportation and material moving rose 3.4 percent. Hospital work showed the smallest gain at 2.2 percent.

The release comes ahead of Friday's closely watched nonfarm payrolls report. Economists expect a gain of about 190,000 and a 2.7 percent increase in average hourly earnings. It also follows last Friday's robust GDP release, which showed the economy grew 4.1 percent in the second quarter.

Also this week, the Federal Reserve meets to discuss monetary policy. The central bank's Federal Open Market Committee is expected to keep its benchmark interest rate target at between 1.75 percent and 2 percent, and wait until September for the next increase. However, committee members are believed to watch the employment cost index closely. </s> Compensation for workers rose to a nearly 10-year high in the second quarter as inflation pressures continued to percolate in the U.S. economy.

The employment cost index increased 0.6 percent for civilian workers in the three-month period ending in June, according to a Bureau of Labor Statistics released Tuesday. That brought the 12-month rate up to 2.8 percent, the highest level since 2.9 percent in the third quarter of 2008, amid the financial crisis and the Great Recession.

Significant wage gains have been a missing part of the economic recovery, with average hourly earnings increases barely keeping pace with inflation. </s> Compensation for workers improved this spring at the highest rate since the Great Recession.

Low unemployment has businesses offering better compensation packages to workers, pushing the employment cost index up to 2.8 percent over a year ago levels, according to a report from the Bureau of Labor Statistics released Tuesday. That is the best annual gain since the third quarter of 2008, which saw the index rise 2.9 percent.

It is only slight gain over the quarterly survey released in March, which indicated a 2.7 percent annual gain. The measure of private-sector wages and salaries, which excludes the costs associated with benefits, rose 2.9% year over year, exactly as it did early in the year. This indicates that wage gains are not accelerating rapidly—something that might convince the Federal Reserve to pick up the pace of interest rate hikes in an effort to keep inflation in line with its target.

In fact, on a quarterly basis, wage gains slowed in the April through June period. Wages rose 0.6 percent compared with the January through March period, less than the 0.8 percent gain in earlier in the year and less than the 0.7 percent growth. So rather than spiraling upward and indicating rising inflation, wage gains appear to have moderated in the second quarter despite the economy growing at a 4.1 percent rate amid very low unemployment.

The gains were broad-based. The employer cost index rose in manufacturing, construction, and services. Compensation for transportation rose 4.0 percent, bolstering arguments that the labor market is tighter in trucking than the broader economy. Compensation in sales and related jobs was up 3.5 percent compared with a year ago. Construction compensation was up 3.2 percent and manufacturing up 2.7 percent.

Wall Street pay was up sharply. Finance and insurance compensation rose 3.8 percent compared with a year ago.

The employer cost index is produced quarterly by the Bureau of Labor Statistics. </s> JACKSONVILLE, Fla. - U.S. workers saw the largest increase in wages and benefits in nearly a decade, according to a new report from the Department of Labor.

The employment cost index increased 0.6 percent for civilian workers during a three-month period that ended in June, according to a Bureau of Labor Statistics release.

Wages and salaries, which account for about 70 percent of all employment costs, also rose 2.8 percent from 2017.

Wage gains have been accompanied by inflation.

That brought the total increase for the year up to 2.8 percent, the highest level since September 2008-- amid the financial crisis and a recession.

Total compensation-- excluding state and local employees rose 2.9 percent in the third quarter of 2008.

The Federal Reserve will meet later this week to discuss monetary policy. </s> News that President-elect Donald Trump has chosen Andrew Puzder to be Secretary of Labor has advocates for low-wage workers up in arms.

Puzder is CEO of CKE Restaurants, the parent company of Carl's Jr. and Hardee's fast food restaurants.

The fast food industry has been Ground Zero for the movement to raise minimum wages. Four years ago, the Fight for $15 campaign was started on behalf of fast food workers. But it has since expanded to advocate for low-wage workers across industries.

Labor advocates' responses to the news have been scathing.

"Puzder will be there for his low-wage-industry CEO buddies, who are now salivating over the prospect of rolling back the Obama administration's efforts to raise pay for low-wage workers, improve workplace safety, and increase corporate accountability for wage theft and other violations," said Christine Owens, executive director of the National Employment Law Project.

The response from two of Puzder's own employees involved with the Fight for $15 was even more scathing.

"Putting one of the worst fast food CEOs in charge of national labor policy sends a signal to workers that the Trump years are going to be about low pay, wage theft, sexual harassment and racial discrimination. Instead of taking on the rigged economy, it seems like Trump wants to rig it up even more," said Carl's Jr. cook Rogelio Hernandez and Hardee's cashier Lacretia Jones.

Trump's Labor Secretary nominee has been a vocal critic of a $15 minimum wage But he told the Los Angeles Times that he doesn't oppose raising the $7.25 federal minimum wage somewhat and indexing it to inflation.

But going as high as $10.10 an hour -- which Democrats in Congress have proposed -- is too high in his book. In a 2014 op-ed, Puzder noted that the working poor are struggling but asserted that increasing the federal minimum wage to $10.10 would not improve their situation. Using the fast food business as an example, Puzder argued that jobs would be cut and franchise owners would rely more on technology to process orders.

Related: 4 states just voted to hike their minimum wage

He has also opposed the Obama administration's efforts to make more workers eligible for overtime pay.

How Puzder -- if confirmed -- might directly affect the Fight for $15 campaign isn't immediately clear. But both Owens and Jonathan Schleifer, executive director of The Fairness Project, think it will "intensify the resolve" of workers with the campaign across cities and states.

Their success isn't just measured in the number of places that have approved a $15 minimum wage, but extends to cities and states that have opted to raise their minimum wage past $10, $11 or $12 and indexing it to inflation thereafter. A number of those successes have come through ballot initiatives, which The Fairness Project and other low-wage-worker advocates have pushed when a locale's lawmakers have rejected a higher minimum.

Should Puzder be confirmed, "it redoubles our enthusiasm for using ballot initiatives," Schleifer said.

Just this past Election Day, voters in four states -- Arizona, Colorado, Maine and Washington -- approved ballot measures that will raise their state minimum wage by between 43% and 60% over the next few years.

Typically, minimum wage measures do well on ballots. Since 2000, 15 states have had a higher minimum wage on the ballot and all of them passed, according to the nonpartisan Initiative and Referendum Institute.

"The Fight for $15 won't back down for one minute in our demands for $15 an hour and union rights for all workers," the two Puzder employees said. "If Trump is going to be a President for the fast food corporations instead of for the fast food workers he is going to be on the wrong side of history." </s> WASHINGTON — America has added more than 1 million jobs since President Donald Trump took office.

The U.S. economy gained a strong 209,000 jobs in July, more than economists had expected. The unemployment rate fell to 4.3 percent, matching a 16-year low.

Just after the Great Recession in 2009, unemployment peaked at 10 percent.

Many economists say the United States is at or near full employment, meaning the unemployment rate won’t go down significantly more.

The job market continues to be one of the main strengths of the U.S. economy. July was the 82nd consecutive month of job growth.

But wage growth is sluggish. Wages grew only 2.5 percent in July. The Federal Reserve would like to see wage growth kick up to 3.5 percent.

While the United States has added 1.07 million jobs during Trump’s six months in office, he isn’t entirely responsible for the job market’s wins and losses.

A slew of factors throughout the economy affect hiring decisions. </s> America has added more than a million jobs since President Trump took office.

The U.S. economy added a strong 209,000 jobs in July, more than economists had expected. The unemployment rate fell to 4.3%, matching a 16-year low. Just after the Great Recession in 2009, unemployment peaked at 10%.

"The economy is looking pretty good," said Cathy Barrera, chief economic adviser at ZipRecruiter, the job posting site.

Many economists say the United States is at or near "full employment," meaning the unemployment rate won't go down significantly more.

Related: The CNNMoney Trump Jobs Tracker

The job market continues to be one of the main strengths of the U.S. economy. July was the 82nd consecutive month of job growth.

But wage growth is sluggish. Wages grew only 2.5% in July compared with a year earlier. The Federal Reserve would like to see wage growth kick up to 3.5%.

"There's still questions about when we're going to see that spike" in wages, said Chris Gaffney, president of Everbank World Markets. "Are we going to see more wage increases for U.S. workers?"

The United States has added 1.07 million jobs during Trump's six months in office. Of course, he isn't entirely responsible for the job market. A slew of factors throughout the economy affect hiring decisions.

Related: Trump's immigration policy poses risk to economic growth

July's job gains came across the board. Restaurants and bars added 53,000 employees. Health care gained 39,000 new positions. Manufacturing firms hired 16,000 workers. Business services and mining were also among the gainers.

More Americans who were on the sidelines jumped back into the job market in July to look for work. Experts say that as unemployment stays low and wage growth remains steady, more Americans should start looking for work again.

"There's still lots of people coming back into the labor force, looking for jobs," said Steve Rick, chief economist at CUNA Mutual, an insurance firm.

The good economic news comes days after Trump endorsed an immigration plan aimed at lowering the number of foreign-born workers by designing a skills-based system to determine who gets into the United States. Last year, there were 27 million foreign-born workers in the United States.

Several economists say the plan would put U.S. economic growth at risk if it meant there would be fewer workers in America. Economic growth is already paltry, and Trump has promised to boost it to 3% from its current range of about 2%.

"It would definitely slow economic growth if you slow the number of people coming in," Rick added.
Worker pay rate in the United States hits its highest level since 2008 according to the Bureau of Labor Statistics. The Employment Cost Index, which tracks worker compensation, has been steadily increasing since just prior to Donald Trump taking office.