NCCI released its latest Quarterly Economics Briefing. This edition also reviews changes in the US labor market, with emphasis on drivers of employment and wage growth across states and regions during 2015 and 2016. Among the findings:
- After posting the fastest growth since the recession during 2015, private employment growth is projected to slow in 2016 and 2017.
- Average weekly wages are forecast to increase by 2.2% in 2016, and to accelerate to a 4.2% rate of increase in 2017.
- Medical inflation is forecast to run between 3.5% to 4.0% during 2016 and 2017, up from 2.6% in 2015 and outpacing general price inflation.
- States with overall declines in employment and wages are primarily driven by declines in the Energy sector (this includes Louisiana).
- The Construction sector’s contribution is generally correlated with a state’s overall growth.
Access the Briefing and employment and wage supplement in full via WorkCompWire here.