FX.co ★ U.S. Employment Cost Growth Moderates in Q3 2025

The latest data on the U.S. Employment Cost Index (ECI) reveals a slight deceleration in the growth of employment costs for the third quarter of 2025. According to figures updated on December 10, 2025, the index rose by 0.8% in Q3, compared to a 0.9% increase observed in the previous quarter.

This moderation signals a shift in the pace of compensation growth across the nation's workforce, as employers continue to adjust to changing economic dynamics. The quarter-over-quarter comparison highlights that while employment costs continue to rise, the increase is at a slower rate than earlier in the year.

The 0.8% growth rate in Q3 follows a robust period of compensation hikes and could suggest a cooling down or stabilizing effect in response to various economic factors. Economic analysts and decision-makers will likely keep a close watch on this metric in the coming quarters to assess ongoing trends in labor costs and their potential impact on both inflation and spending power.