IONETARY POLICY REPORT: FEBRUARY 2018 7 4. Unemployment rate by race and ethnicity 12 Hispanic or Latin White 4 2006 SOURCE: Bureau of Labor Statistics via Haver Analytics has strengthened over the past few years, the participation rates for prime-age individuals in each of these groups have risen Growth of labor compensation has been 5. Measures of change in hourly compensation moderate Percent change from Despite the strong labor market, the available indicators generally suggest that the growth ompensation per hour. business sector of hourly compensation has been moderate Growth of compensation per hour in the Atlanta Feds Wage Growth Tracker business sector-a broad-based measure of wages, salaries, and benefits that is quite 432 volatile-was 2 4 percent over the four quarters ending in 2017: Q4(figure 5), well above the low reading in 2016 but about in Average hourly eamings Employment cost index line with the average annual increase from 2010 to 2015. The employment cost index which also measures both wages and the cost NOTE: Business-sector ensation is on a four-quarter to employers of providing benefits-was up bout 2/2 percent in the fourth quarter of is from 12 months earlier: for the Atlanta Fed's Wage growth Tracker. the 2017 relative to its year-ago level, roughly data are shown as a 3-month moving average of the 12-month percent OURCE: Bureau of Labor Statistics via Haver Analytics: Federal Reserve 4. The compensation per hour measure of wages and Bank of Atlanta. Wage Growth tracke salaries declined at the end of 2016, possibly reflecting the shifting of bonuses or other types of income into 2017 in anticipation of a possible cut in personal income tax rates.MONETARY POLICY REPORT: FEBRUARY 2018 7 has strengthened over the past few years, the participation rates for prime-age individuals in each of these groups have risen. Growth of labor compensation has been moderate . . . Despite the strong labor market, the available indicators generally suggest that the growth of hourly compensation has been moderate. Growth of compensation per hour in the business sector—a broad-based measure of wages, salaries, and benefits that is quite volatile—was 2¼ percent over the four quarters ending in 2017:Q4 (figure 5), well above the low reading in 2016 but about in line with the average annual increase from 2010 to 2015.4 The employment cost index— which also measures both wages and the cost to employers of providing benefits—was up about 2½ percent in the fourth quarter of 2017 relative to its year-ago level, roughly 4. The compensation per hour measure of wages and salaries declined at the end of 2016, possibly reflecting the shifting of bonuses or other types of income into 2017 in anticipation of a possible cut in personal income tax rates. Black or African American Asian Hispanic or Latino 2 4 6 8 10 12 14 16 18 Percent 2006 2008 2010 2012 2014 2016 2018 4. Unemployment rate by race and ethnicity Monthly White NOTE: Unemployment rate measures total unemployed as a percentage of the labor force. Persons whose ethnicity is identified as Hispanic or Latino may be of any race. The shaded bar indicates a period of business recession as defined by the National Bureau of Economic Research. SOURCE: Bureau of Labor Statistics via Haver Analytics. Employment cost index Atlanta Fed's Wage Growth Tracker Average hourly earnings 1 + _ 0 1 2 3 4 5 6 Percent change from year earlier 2010 2012 2014 2016 2018 5. Measures of change in hourly compensation Compensation per hour, business sector NOTE: Business-sector compensation is on a four-quarter percentage change basis. For the employment cost index, change is over the 12 months ending in the last month of each quarter; for average hourly earnings, change is from 12 months earlier; for the Atlanta Fed's Wage Growth Tracker, the data are shown as a 3-month moving average of the 12-month percent change. SOURCE: Bureau of Labor Statistics via Haver Analytics; Federal Reserve Bank of Atlanta, Wage Growth Tracker