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http://www.bls.gov/ect THURSDAY, JULY 31, 2008
EMPLOYMENT COST INDEX-JUNE 2008
Total compensation costs for civilian workers increased 0.7 percent from March to
June 2008, seasonally adjusted, the Bureau of Labor Statistics of the U.S. Department
of Labor reported today, the same as the increase from December 2007 to March 2008. Wages
and salaries rose 0.7 percent and benefits rose 0.6 percent. In the previous quarter,
wages and salaries increased 0.8 percent and benefits increased 0.6 percent. The
Employment Cost Index (ECI), a product of the National Compensation Survey, measures
quarterly changes in compensation costs for civilian workers (nonfarm private industry
and state and local government workers).
Table A. 3-month percent changes in the Employment Cost Index, seasonally adjusted
Compensation Sep. Dec. Mar. June Sep. Dec. Mar. June
component 2006 2006 2007 2007 2007 2007 2008 2008
Civilian workers
Compensation costs 1.0 0.8 0.8 0.9 0.8 0.8 0.7 0.7
Wages and salaries 0.9 0.8 1.0 0.8 0.8 0.8 0.8 0.7
Benefit costs 1.0 1.0 0.2 1.3 0.8 0.8 0.6 0.6
Private industry
Compensation costs 0.9 0.8 0.7 0.8 0.8 0.9 0.8 0.6
Wages and salaries 0.9 0.8 1.0 0.8 0.8 0.8 0.8 0.7
Benefit costs 0.9 0.9 -0.3 1.1 0.8 0.8 0.6 0.5
State and local government
Compensation costs 1.3 1.1 1.2 1.0 0.9 0.9 0.6 0.9
Wages and salaries 1.3 0.8 0.9 0.9 0.9 0.8 0.7 0.9
Benefit costs 1.6 1.5 1.7 1.6 0.9 1.2 0.3 1.1
Quarterly changes, seasonally adjusted
Compensation costs for private industry rose 0.6 percent from March to June 2008;
for the prior quarter the increase was 0.8 percent. In state and local government, the
increase was 0.9 percent compared to 0.6 percent in the previous quarter. Wages and
salaries for private industry workers increased 0.7 percent for the March to June 2008 period.
For the previous quarter, the increase was 0.8 percent. In state and local government, the
increase was 0.9 percent, compared with 0.7 percent in the prior quarter. Benefit costs for
private industry rose 0.5 percent, compared to 0.6 percent in the previous quarter. For
state and local government, benefit costs increased 1.1 percent, well above the 0.3 percent
increase in the previous quarter. (See tables A, 1, 2, and 3.)
______________________________________________________________________________________________
Metropolitan and Nonmetropolitan Area Data Series
There will be changes to the availability of Employment Cost Index (ECI) data for metropolitan
and nonmetropolitan areas in future ECI news releases. See note on page 4 for additional
information.
_______________________________________________________________________________________________
Over-the-year changes, not seasonally adjusted
Compensation costs for civilian workers increased 3.1 percent for the year ended June 2008.
For the year ended June 2007 the increase was 3.3 percent. In private industry, compensation
costs rose 3.0 percent in the year ended June 2008, about the same as the 3.1 percent increase
for the year ended June 2007. For state and local government, the increase for the 12-month
period ended June 2008 was 3.5 percent, less than the June 2007 increase of 4.8 percent. Wages
and salaries for civilian workers increased 3.2 percent for the 12-month period; in June 2007,
the increase was 3.4 percent. Private industry wages and salaries increased 3.1 percent in
June 2008. In June 2007 the increase was 3.3 percent. State and local government wages
and salaries increased 3.4 percent for the year ended June 2008. In June 2007, the increase
was 3.8 percent. Benefits--which increased 2.9 percent for civilian workers--differed by
ownership sector. Private industry benefit costs increased 2.6 percent, less than the state
and local government increase of 3.5 percent for the 12-month period ended June 2008.
(See table B.)
Table B. 12-month percent changes in the Employment Cost Index, not seasonally adjusted
June June June June June June
Compensation component 2003 2004 2005 2006 2007 2008
Civilian workers
Compensation costs 3.7 3.8 3.2 3.0 3.3 3.1
Wages and salaries 2.7 2.6 2.5 2.8 3.4 3.2
Benefit costs 5.9 7.1 5.0 3.4 3.4 2.9
Private industry
Compensation costs 3.5 3.9 3.1 2.8 3.1 3.0
Wages and salaries 2.6 2.7 2.5 2.8 3.3 3.1
Benefit costs 5.8 7.3 4.7 2.7 2.6 2.6
State and local government government
Compensation costs 4.3 3.5 3.5 3.8 4.8 3.5
Wages and salaries 3.1 2.1 2.3 3.1 3.8 3.4
Benefit costs 6.8 6.6 6.3 5.5 6.6 3.5
Nonfarm private industry
For the year ended June 2008, private industry compensation costs increased 2.8 percent
for goods-producing industries, compared to a 2.6 percent increase in June 2007. Compensation
costs for manufacturing increased 2.1 percent for the year ended June 2008, compared to
1.9 percent for the year ended June 2007. Manufacturing gains have been less than total
private industry gains since March 2006. Compensation costs for the construction industry
rose 4.0 percent, about the same as in the 3.9 percent increase in the previous year.
(See table 5.)
The over-the-year increase for June 2008 in compensation costs for service-providing
industries was 3.1 percent. The June 2007 increase was 3.3 percent. Among the major
service-providing industries, changes in compensation costs ranged from 0.6 percent in
information to 3.8 percent in professional and business services. (See table 5.)
Among private industry occupational groups, over-the-year compensation gains ranged from
2.6 percent for production, transportation, and material moving to 3.3 percent for service
occupations. (See table 5.)
Compensation costs for union workers advanced 2.7 percent in the year ended June 2008
while compensation cost increases for nonunion workers increased 3.0 percent in the same
12-month period. Wages and salaries for union workers increased 2.9 percent in the 12-month
period ended June 2008. For nonunion workers, the increase was 3.2 percent. Benefit costs
for union workers rose 2.4 percent in the 12-month period; costs for nonunion workers rose
2.7 percent. (See tables C, 6, 10, and 12.)
Table C. 12-month percent changes in the Employment Cost Index, private industry workers,
by bargaining status, not seasonally adjusted
Compensation June June June June June June
component 2003 2004 2005 2006 2007 2008
Union workers
Compensation costs 4.9 5.7 3.0 3.0 2.1 2.7
Wages and salaries 3.0 2.8 2.4 2.5 2.5 2.9
Benefit costs 8.1 10.9 4.1 3.8 1.4 2.4
Nonunion workers
Compensation costs 3.2 3.7 3.1 2.8 3.3 3.0
Wages and salaries 2.5 2.7 2.5 2.9 3.4 3.2
Benefit costs 5.3 6.4 4.8 2.5 2.8 2.7
State and local government
For the year ended June 2008, wages and salaries for state and local government workers
rose 3.4 percent. The increase for the 12-month period ended June 2007 was 3.8 percent.
Benefit costs increased 3.5 percent, down from the increase of 6.6 percent in the previous
year. Public administration wages and salaries increased 3.2 percent, down from the June 2007
increase of 4.1 percent. (See tables B, 11, and 12.)
Over-the-year changes in wages and salaries, constant dollars, not seasonally adjusted
After adjusting for the changes in the prices of consumer goods and services, wages and
salaries for civilian workers decreased 1.7 percent for the 12-month period ended June 2008,
compared to a 0.7 percent increase for the 12-month period ended June 2007. The decrease for
private industry was 1.8 percent compared to an increase of 0.7 percent for the year ended
June 2007. State and local government registered a 1.4 percent decrease, compared to an
increase of 0.9 percent for the previous year. (See table D.)
Table D. 12-month percent changes in wages and salaries, Employment Cost Index, constant dollars,
not seasonally adjusted
Series June June June June June June
2003 2004 2005 2006 2007 2008
Civilian workers 0.6 -0.7 -0.1 -1.3 0.7 -1.7
Occupation
Management, professional, and
related 0.9 -0.7 0.1 -1.3 0.9 -1.5
Sales and office 0.3 -0.3 -0.1 -1.1 0.5 -2.1
Natural resources, construction,
and maintenance 0.5 -0.6 -0.4 -1.1 0.6 -1.3
Production, transportation, and
material moving 0.3 -1.0 -0.2 -2.0 0.0 -2.0
Service 0.2 -1.1 -0.2 -1.8 1.3 -1.6
Industry
Goods-producing 0.8 -1.0 0.0 -1.1 0.2 -1.8
Service-providing 0.5 -0.6 -0.1 -1.4 0.8 -1.6
Private industry 0.5 -0.6 0.0 -1.5 0.7 -1.8
State and local government 1.0 -1.2 -0.1 -1.2 0.9 -1.4
___________________________________________________________________________________________
NOTE:
Effective with the release of December 2008 data, compensation and wage and salary data
aggregated across all metropolitan and nonmetropolitan areas--which currently appear in
tables 6 and 10--will be discontinued as a result of classification changes to metropolitan
statistical areas.
Beginning with data for this quarter--June 2008--ECI estimates for private industry for
as many as 15 individual localities will be released. For each locality, two estimates
will be provided: 12-month percent change for total compensation and 12-month percent
change for wages and salaries. The June 2008 data are scheduled for release on the
Compensation and Working Conditions Online (CWC Online) website at www.bls.gov/opub/cwc
in late September 2008. Information about future release schedules for these data will be
included in the CWC Online article.
The ECI for September 2008 is scheduled for release on Friday, October 31, 2008, at
8:30 AM EDT.
ECI data are available on the Compensation Cost Trends page at www.bls.gov/ect. For
ECI data requests, send e-mail to NCSinfo@bls.gov or call (202)691-6199. For technical
assistance in using the BLS Internet site, send e-mail to webmaster@bls.gov.
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Information in this release will be made available to sensory impaired individuals
upon request. Voice phone: (202) 691-5200; Federal Relay Service Number: 1-800-877-8339.
___________________________________________________________________________________________
Bureau of Labor Statistics
