Liz Ann Sonders, chief investment strategist at Charles Schwab, reported key labor market data on X on Friday, October 30, 2026. Sonders highlighted that the Employment Cost Index (ECI), which tracks changes in wages, salaries, and benefits, showed a moderation in growth. She stated, "Employment Cost Index (ECI), which measures changes in wages/salaries and benefits, rose 0.8% in 3Q26 vs. 0.9% in 2Q26 … labor costs advanced 3.4% on a year/year basis, but trailed headline CPI inflation, which grew 3.7% in September."
The Employment Cost Index is a crucial economic indicator closely monitored by the Federal Reserve to assess wage pressures and their potential impact on inflation. A deceleration in the ECI could signal a cooling labor market, potentially influencing future monetary policy decisions. Today, major U.S. stock indexes saw declines, with the Nasdaq down 2.9% and the S&P 500 down 1.8%. Recent Gokhshtein Media coverage has included corporate earnings reports from companies like Meta and AbbVie.
Sonders' data indicates that while labor costs continued to rise, their growth rate slowed in the third quarter and did not keep pace with overall consumer price increases in September. This suggests that real wages might be declining for workers, even as nominal wages advance. The strategist's observation implies that wage-driven inflation pressures may be moderating, which could be a positive signal for the Federal Reserve's ongoing efforts to control inflation.
