US likely to post 0.6 % compensation gain in Q4 2015

U.S. total compensation rose 0.6 percent in the third quarter showing a rebound after witnessing a weak result of 0.2 percent in the second quarter. As benefit costs increased 0.5 percent, wages also gained by 0.6 percent. Despite continuous growth in employment, wage growth has maintain a circa 2.0 percent pace in the previous two years. However, as unemployment rate is verging on its full-employment level, this trend is expected to gain momentum further.

"Consequently, come Q4 we look for a 0.7% gain for wages which would see the annual rate edge up to 2.2%yr.Total compensation is however likely to be held back by softer growth in benefits. We see a total compensation gain of 0.6% in the quarter, taking the annual rate to 2.0%yr" - Westpac