Even Record Gains in Worker Pay Fall Behind Soaring Costs of Living

Even Record Gains in Worker Pay Fall Behind Soaring Costs of Living


Worker pay and benefits rose at a record pace in the second quarter—but even that was not enough to prevent American workers from losing ground to inflation.

The employment-cost index, a gauge of wages and benefits for civilian workers, jumped a seasonally adjusted 1.3 percent in the quarter, the Labor Department said Friday. That was close to the 1.4 percent gain in the first quarter, the biggest increase in records going back to the turn of the century.

Employers spent 5.1 percent more on benefits and wages in the second quarter compared with the April through June period a year ago. That is the biggest ever year-0ver-year gain in employment costs.

Inflation, however, has been running even hotter, pushing prices up faster than record

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