What Is the Employment Cost Index?
Each year, quarterly to be exact, international labor organizations provide a detailed report called the employment cost index that measures the growth of compensation and the cost of civilian labor by individual industries. The employment cost index, also commonly called the ECI, is used by companies to measure the change in the cost of labor based on variable factors. The employment cost index is sometimes referred to as the “weighted average hourly cost of an hour of labor.” The employment cost index is actually based on a random survey of company payrolls in the final month of each quarter. The data is pulled from employer payroll records provided by quarterly mandated employer wage statements and reports. This data is displayed according to industry and no direct or confidential information is provided about the companies or employees.
