According to a report released by the Labor Department, workers' wages and benefits grew 0.7% in the final quarter of 2003, which was the smallest gain in a year. This may be due to the fact that the employment costs of providing benefits such as health insurance is increasing. The pace of layoffs seems to be leveling off as new claims for unemployment benefits last week dipped to the lowest level since the end of December. Economists believe that there are signs of continued economic recovery although new hiring will occur at a gradual pace.
See "Employment costs inch higher; jobless claims dip", USA Today, January 28, 2004