Worker pay rose more than expected in Q1 in another sign of persistent inflation

Employee compensation costs jumped more than expected to start the year, providing another danger sign about persistent inflation, while consumer confidence hit its lowest level in nearly two years.

The employment cost index, which measures worker salaries and benefits, gained 1.2% in the first quarter, the Labor Department reported Tuesday. That was higher than 0.9% in the fourth quarter of 2023 and above the Dow Jones consensus estimate for a 1% increase.

In the larger picture, the rise added to concerns that a string of 11 Fed interest rate hikes has not...