Compensation costs for civilian workers in the United States went up by 0.7% in Q4 2025, the least since Q2 2021, after a 0.8% increase in the prior period, amid softer demand for labor. Figures came in slightly below market forecasts of a 0.8% rise. Wages and salaries increased 0.7% and benefit costs rose 0.7% from the September quarter of 2025. Compensation costs for private industry workers were up 0.7% (vs 0.8% in Q3), and those for state and local government workers advanced by 0.8% (vs 0.8%). Year-on-year, employment costs rose by 3.4%, after a 3.5% growth in Q3.