Marketplace All-in-One A closer eye on employment costs
Feb 10, 2026
Mo Ali, BBC correspondent with on-the-ground reporting from South Africa. Carla Javier, Marketplace reporter summarizing consumer expectations and Fed survey readings. Jeffrey Cleveland, chief economist at Peyton & Regal explaining labor costs and inflation signals. They discuss softer-than-expected employment cost growth, conflicting consumer-confidence measures, and South African stone fruit producers shifting exports to China.
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Softer Wage Growth Weakens Inflation Pressure
- The Employment Cost Index rose less than expected, signaling softer wage growth than recent years.
- Jeffrey Cleveland says this moderating wage pressure supports the case for additional rate cuts.
Weak Wages Signal Labor Market Cooling
- Slower wage growth reflects a softening labor market rather than positive economic gains for workers.
- Cleveland frames the weak wage data as a symptom of declining labor demand and fewer raises.
Consumers Expect Tougher Future Financial Conditions
- The New York Fed's reading showed improved mood while The Conference Board reported low consumer confidence.
- Researchers note consumers expect tighter future financial conditions and higher borrowing costs.