ECI

The Employment Cost Index is a quarterly economic indicator published by the Bureau of Labor Statistics measuring changes in labor costs including wages, salaries, and employer costs for employee benefits. ECI tracks compensation trends across industries and occupations without being affected by employment shifts between industries.

In government contracting, ECI data supports economic price adjustment clauses in multi-year contracts, allowing periodic adjustments to labor rates based on documented market changes. Contractors may reference ECI when justifying proposed labor rate escalation or negotiating price adjustments. ECI provides objective, third-party data for cost discussions with contracting officers.