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US Employment Cost Index in June 2008
added: 2008-08-01

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,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).

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. 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. 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.

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. 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.

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.

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. 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.


Source: U.S. Department of Labor

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