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 June to September 2008, the same as the increase for the prior quarter. In state and local government, the increase was 0.9 percent, also the same as in the previous quarter. Wages and salaries for private industry workers increased 0.6 percent for the June to September 2008 period. For the previous quarter, the increase was 0.7 percent. In state and local government, the increase was 1.0 percent, compared with 0.9 percent in the prior quarter. Benefit costs for private industry rose 0.6 percent, compared to 0.5 percent in the previous quarter. For state and local government, benefit costs increased 0.7 percent, less than the 1.1 percent increase in the previous quarter.
Over-the-year changes, not seasonally adjusted
Compensation costs for civilian workers increased 2.9 percent for the year ended September 2008, less than the 3.3 percent increase for the year ended September 2007. In private industry, compensation costs rose 2.8 percent in the year ended September 2008; the increase for the year ended September 2007 was 3.1 percent. For state and local government, the increase for the 12-month period ended September 2008 was 3.4 percent, down from the September 2007 increase of 4.3 percent. Wages and salaries for civilian workers increased 3.1 percent for the 12-month period; in September 2007, the increase was 3.3 percent. Private industry wages and salaries increased 2.9 percent in September 2008. In September 2007 the increase was 3.4 percent. State and local government wages and salaries increased 3.5 percent for the year ended September 2008, the same as the increase in September 2007. Benefits increased 2.6 percent for civilian workers. In private industry, benefit costs increased 2.4 percent, less than the increase for state and local government, which was 3.3 percent for the 12-month period ended September 2008.
Nonfarm private industry
For the year ended September 2008, private industry compensation costs increased 2.7 percent for goods-producing industries, compared to a 2.4 percent increase in September 2007. Compensation costs for manufacturing increased 2.3 percent for the year ended September 2008, compared to 1.8 percent for the year ended September 2007. In the construction industry, compensation costs rose 3.5 percent compared to 3.8 percent for the 12-month period ending September 2007.
The over-the-year increase for September 2008 in compensation costs for service-providing industries was 2.8 percent. The September 2007 increase was 3.3 percent. Among the major service-providing industries, changes in compensation costs ranged from 1.3 percent in information to 3.6 percent in professional and business services.
Among private industry occupational groups, over-the-year compensation gains ranged from 2.5 percent for sales and office occupations to 3.0 percent for management, professional, and related occupations.
Compensation costs for union workers advanced 2.9 percent in the year ended September 2008 while compensation cost increases for nonunion workers increased 2.8 percent in the same 12-month period. Wages and salaries for union workers increased 2.9 percent in the 12-month period ended September 2008. For nonunion workers, the increase was 3.0 percent. Benefit costs for union workers rose 2.8 percent in the 12-month period; costs for nonunion workers rose 2.4 percent.
State and local government
For the year ended September 2008, wages and salaries for state and local government workers rose 3.5 percent, the same as the increase for the 12-month period ended September 2007. Benefit costs increased 3.3 percent for the current 12-month period, less than the increase for the previous year, which was 6.0 percent. Public administration wages and salaries increased 3.3 percent, also less than its September 2007 12-month percent increase of 4.3 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 1.8 percent for the 12-month period ended September 2008, compared to a 0.6 percent increase for the 12-month period ended September 2007. The decrease for private industry was 1.8 percent compared to an increase of 0.5 percent for the year ended September 2007. State and local government registered a 1.4 percent decrease, compared to an increase of 0.7 percent for the previous year.
