Employment Cost Index
The Employment Cost Index (ECI) is the best measure of compensation (wages and benefits) growth available to labor analysts. Like the Consumer Price Index (CPI), it relies on a fixed basket of items - in this case, occupations. This prevents shifts in occupational composition of the workforce from appearing as wage gains, as they do in average hourly earnings data Because the ECI includes overtime payments as a fixed increment to wages, short-term increases in overtime will not alter the index.
Suggested citation: “Employment Cost Index,” Federal Reserve Bank of Cleveland, Economic Trends, no. 97-02, pp. 11, 02.01.1997.