The U.S. Employment Cost Index (ECI) increased by 0.7% in the fourth quarter of 2025, easing from a 0.8% rise recorded in the third quarter of 2025. The data, updated on 10 February 2026, shows a modest quarter-over-quarter slowdown in the pace of employment cost growth across the U.S. labor market.
On a quarter-over-quarter basis, the “actual” reading of 0.7% for Q4 2025 is measured against the previous quarter’s 0.8% increase in Q3 2025, which itself was a comparison to the second quarter. The deceleration suggests that while employment costs are still rising, the pressure from wages and benefits may be moderating slightly compared with earlier in the year, an element closely watched by policymakers and investors as a key input into inflation dynamics.
