Employment costs up 0.4% as benefit costs rise

WASHINGTON (AP) — Compensation costs for U.S. workers rose modestly in the July-September quarter as the cost of benefits such as health insurance rose more rapidly than wages and salaries.

The Labor Department says that compensation increased a seasonally adjusted 0.4% in the third quarter compared to the April-June quarter when compensation had risen 0.5%.

Wages and salaries, which make up 70% of compensation costs, rose 0.3% in the third quarter while benefits were up 0.7%.

Over the past 12 months, compensation costs have risen a modest 1.9%.

The Great Recession, which saw millions lose their jobs, has kept a lid on wage growth. That has meant low inflation overall, a factor that has allowed the Federal Reserve to keep interest rates low to boost the economy.