WASHINGTON Wages, salaries and benefits paid to American workersrose 4.6 percent over the last 12 months, a much slower advance thanthe year before, the government said today in a report viewed asevidence that wage inflation is abating.
In fact, analysts said the more moderate rise in the LaborDepartment's employment cost index, considered one of the best gaugesof wage inflation pressures, probably played a part in the FederalReserve's move to lower a key interest rate.
The move came within an hour of the Labor Department's releaseof the report.
The 4.6 percent increase in over-all compensation costs for theyear ending March, 1991, marked a dramatic decline from a year ago,when those costs had soared 5.5 percent for a similar 12-monthperiod.
Also today, the Labor Department said that workers covered bycollective bargaining agreements settled so far this year won annualwage gains averaging 3.4 percent over the life of the pact.
Previously, those contracts had provided 2 percent annualgains.
For the last year, too, there was a substantial slowdown inbenefit cost increases, which rose 5.9 percent for 12 months endingin March, down from the 7.4 percent spurt for the year ending inDecember.
The Labor Department attributed the slowdown in benefit costincreases to lower gains in pension costs and non-production bonusesthat offset relatively large increases in health insurance costs andworkers' compensation insurance rates.
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