Wages and benefits are not accelerating despite the tight labor market:
The benefits change shifts around a bit, but the blue line, which totals wages and benefits, shows great stability. This despite the low unemployment rate:
I think that companies are feeling pressure to keep costs down, and they worry that going out to hire just any warm body may result in costs greater than value of the labor. In fact, I think the biggest limitation on economic growth right now is availability of labor.
Implications for Federal Reserve policy: steady labor cost increases reduce the itch to tighten, but the steady unemployment rate reduces the urge to ease. Forecast for short-term interest rates: steady as Ben goes.
Business Implications: What should a company do if it wants to hire but is having trouble finding the workers they need? Take a look at my 6 Steps to Hiring in a Tight Labor Market.