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The Employment Cost Index, or ECI, is a quantitative measure of proliferation of wages and other employee compensation. The Employment Cost Index is an average figure calculated in units of one hour of labor. In addition to reflecting current employee wages, the Employment Cost Index also provides data on other forms of compensation, such as employee benefits, bonuses, and entitlement programs. By taking into account all given occupations and industry trends, the Employment Cost Index provides a good assessment of wage movements, as they relate to the cost of living and market conditions. The Employment Cost Index is also an important indicator of potential inflation. The Employment Cost Index is a quarterly report issued by the U.S. department of Labor.
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