Compensation costs for civilian workers increased 0.4 percent, seasonally adjusted, for the 3-month period ending December 2010, the U.S. Bureau of Labor Statistics reported. Both wages and salaries (which make up about 70 percent of compensation costs) and benefits (which make up the remaining 30 percent of compensation) increased 0.4 percent.

Civilian Workers

Compensation costs for civilian workers increased 2.0 percent for the 12-month period ending December 2010. This was higher than in December 2009, when the increase was 1.4 percent. Wages and salaries increased 1.6 percent for the current 12-month period; in December 2009 the increase was 1.5 percent. Benefit costs accelerated to 2.9 percent, up from a 1.5 percent increase for the 12-month period ending December 2009 due primarily to increases in retirement costs.

Private Industry Workers

Compensation costs for private industry workers increased 2.1 percent over the year, higher than the 1.2 percent increase for the previous 12-month period. The wage and salary series increased 1.8 percent for the current 12-month period. The change for the period ending December 2009 was 1.3 percent. The cost of benefits increased 2.9 percent for the 12-month period ending December 2010, higher than the December 2009 increase of 0.9 percent. Employer costs for health benefits rose 5.0 percent for the 12-month period ending December 2010. In December 2009, the 12-month percent change was 4.3 percent.

Among occupational groups, compensation cost increases for private industry workers for the 12-month period ending December 2010 ranged from 1.5 percent for service occupations to 2.4 percent for production, transportation, and material moving occupations.

Among industry supersectors, compensation cost increases for private industry workers for the current 12-month period ranged from 0.9 percent for construction to 2.8 percent for manufacturing.

State and Local Government Workers

Compensation cost increases for State and local government workers decelerated to 1.8 percent for the 12-month period ending December 2010, down from 2.3 percent for the 12-month period ending December 2009. Prior to this quarter, values for this series - which began in June 1982 - ranged from 1.7 percent in June 2010 to 9.6 percent in June 1982. The slowdown in compensation was due to wages and salaries, which increased 1.2 percent. Prior values for this series, which also began in June 1982, ranged from 1.2 percent in September 2010 to 8.5 percent in June 1982. Benefit costs increased 2.9 percent. Prior values for this series, which began in June 1990, ranged from 1.2 percent in December 1997 to 8.3 percent in June 1990.