FX.co ★ US Employment Costs Rise Less than Expected

In the third quarter of 2025, compensation costs for civilian workers in the United States rose by 0.8%, a slight deceleration from the 0.9% increase observed in the previous quarter and marginally below market expectations of a 0.9% rise. Specifically, wages and salaries grew by 0.8%, down from the 1% increase recorded in the first quarter, while benefit costs climbed by 0.8%, a slight uptick from the prior 0.7% increase. For private industry workers, compensation costs increased by 0.8%, compared to a previous rise of 1%, and for state and local government workers, the costs advanced by 0.8%, consistent with the previous rate. On an annual basis, employment costs rose by 3.5%, following a 3.6% increase in the second quarter.