Price dynamics of labor power is an important economic indicator. It allows understanding the true picture that describes the labor’s market in the certain country.
Employment cost index includes two main indicators: the average salary in a country and the unemployment rate. Researching these indicators allows determining inflationary tendencies in the state accurately. This index is also important because the Federal Reserve System of the USA takes it into the account as one of the most important factors. FRS needs it to carry out the competent monetary policy in a country.
This index is published once in a quarter. In fact, its impact on the market in the short-term comes to naught. At the same time, impact on the long- and the mid-term trends can be very strong.