Wage Costs Continue To Climb

July 26, 2001 (PLANSPONSOR.com) The Employment Cost Index, the broadest measure of US labor costs, rose by 0.9% in the second quarter of 2001, implying that employers are still paying more to hold onto their workers, despite a softer job market.

The increase in the index follows a 1.1% gain the previous quarter, but is in line with the 1% increase expected by analysts.

Wages and salaries rose by 1%, the same rate as in the previous quarter, however benefit costs increased by 1%, compared with 1.3% rise seen in the first quarter of 2001.

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However, for the 12 months ending June this year, the index increased by 3.9%, in comparison to the 4.4% gain seen for the same period the previous year.

The index gauges what employers pay in wages salaries and benefits and is closely followed by investors as an indicator of wage inflation. If wage inflation threatens, interest rates often rise, while bond and stock prices fall.

ETF Assets Rise $2.8 Billion in June

July 25, 2001 (PLANSPONSOR.com) - The assets invested in US exchange-traded funds (ETFs) rose to $75.56 billion at the end of June, up from $72.77 billion the previous month, according to the Investment Company Institute (ICI).

The figure includes the total investments in domestic broad-based and sector ETFs combined with that invested in global ETFs, funds with shares that trade throughout the day on exchanges at prices driven by the market forces of supply and demand.

In June, the value of shares issued exceeded the value of those redeemed by $3.42 billion, a turnaround from the previous month when net redemptions reached $248 million.

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The latest figures show gross issuance reaching $7.23 billion, up from $4.05 billion the previous month while gross redemptions were lower at $3.81 billion, compared with $4.3 billion in May

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