U.S. Q1 employment cost growth weakest on record

Published: 30 Apr 2009 04:38:36 PST

WASHINGTON, April 30 - U.S. employment costs rose by the lowest amount on record in the first quarter, government data showed on Thursday, as the country's severe recession dented compensation amid soaring unemployment.

The Labor Department's Employment Cost Index, a broad measure of wages and benefits, increased by just 0.3 percent between January and March following a 0.6 percent rise in the final three months of 2008. Analysts polled by Reuters had forecast employment costs would rise by 0.5 percent.