Compensation costs for civilian workers in the United States rose by 0.9% in the first quarter of 2026, after a 0.7% increase in the previous period, slightly above forecasts of a 0.8% rise. Wages and salaries increased 0.8% (vs 0.7% in Q4 2025) and benefits rose at a faster pace of 1.2% (vs 0.8%), the highest level in five months. Compensation costs for private industry workers grew 0.9%, from 0.7% in Q4 2025, and for state and local government workers grew 1%, from 0.8% in the previous quarter. On an annual basis, employment cost growth remained unchanged from the last period at 3.4%.