Employment Costs Surge: The Labor Department reported...

Employment Costs Surge: The Labor Department reported that wages, salaries and benefits paid to American workers rose by 1.7% in the first quarter, up from the 1% gain in the fourth quarter of 1989. The rise left the employment cost index up a strong 5.5% in the 12 months ending in March, the highest rate in nearly five years. Tight labor markets take much of the blame for pushing employment costs higher. Two other factors pushing employment costs up have been rising health insurance premiums and a jump in required Social Security contributions.