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EMPLOYMENT COST INDEX-MARCH 2008
Total compensation costs for civilian workers increased 0.7 percent from December 2007
to March 2008, seasonally adjusted, the Bureau of Labor Statistics of the U.S. Department of
Labor reported today. The increase for the September to December 2007 period was 0.8 percent.
Wages and salaries rose 0.8 percent and benefits rose 0.6 percent. In the previous quarter,
both wages and salaries and benefits increased 0.8 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 0.8 percent from December 2007 to March 2008;
for the prior quarter the increase was 0.9 percent. Wages and salaries for private industry
workers increased 0.8 percent for the December 2007 to March 2008 period, the same as in the
previous quarter. In state and local government, the increase was 0.7 percent, compared with
0.8 percent in the prior quarter. Benefit costs for private industry rose 0.6 percent, compared
to 0.8 percent in the previous quarter. For state and local government, benefit costs increased
0.3 percent, compared to 1.2 percent in the previous quarter. (See tables A, 1, 2, and 3.)
Table A. 3-month percent changes in the Employment Cost Index, seasonally adjusted
Compensation June Sep. Dec. Mar. June Sep. Dec. Mar.
component 2006 2006 2006 2007 2007 2007 2007 2008
Civilian workers
Compensation costs 0.9 1.0 0.8 0.8 0.9 0.8 0.8 0.7
Wages and salaries 0.9 0.9 0.8 1.0 0.8 0.8 0.8 0.8
Benefit costs 0.9 1.0 1.0 0.2 1.3 0.8 0.8 0.6
Private industry
Compensation costs 0.8 0.9 0.8 0.7 0.8 0.8 0.9 0.8
Wages and salaries 0.8 0.9 0.8 1.0 0.8 0.8 0.8 0.8
Benefit costs 0.8 0.9 0.9 -0.3 1.1 0.8 0.8 0.6
State and local government
Compensation costs 1.0 1.3 1.1 1.2 1.0 0.9 0.9 0.6
Wages and salaries 0.9 1.3 0.8 0.9 0.9 0.9 0.8 0.7
Benefit costs 1.3 1.6 1.5 1.7 1.6 0.9 1.2 0.3
NOTES
This release incorporates annual revisions in seasonally adjusted data.
Effective with the December 2008 release, series for metropolitan areas and nonmetropolitan
areas will be discontinued. See page 4 for further details.
Over-the-year changes, not seasonally adjusted
Compensation costs for civilian workers increased 3.3 percent for the year ended March 2008.
For the year ended March 2007 the increase was 3.5 percent. In private industry, compensation
costs rose 3.2 percent in the year ended March 2008, the same as for the year ended March 2007.
For state and local government, the increase for the 12-month period ended March 2008 was
3.6 percent, less than the March 2007 increase of 4.6 percent. Wages and salaries for civilian
workers increased 3.2 percent for the 12-month period; in March 2007, the increase was 3.6 percent.
Private industry wages and salaries increased at the same rate as the civilian sector in March 2007
and March 2008. However, state and local government wage and salary increased 3.5 percent for
the year ended March 2008. In March 2007, the increase was 3.8 percent. Benefits--which increased
3.5 percent for civilian workers--differed by ownership sector. Private industry benefit costs
increased 3.2 percent, less than the state and local government increase of 4.1 percent for the
12-month period ended March 2008. (See table B.)
Table B. 12-month percent changes in the Employment Cost Index, not seasonally adjusted
Mar. Mar. Mar. Mar. Mar. Mar.
Compensation component 2003 2004 2005 2006 2007 2008
Civilian workers
Compensation costs 3.8 3.7 3.6 2.8 3.5 3.3
Wages and salaries 2.9 2.6 2.5 2.7 3.6 3.2
Benefit costs 5.9 6.7 5.9 3.4 3.1 3.5
Private industry
Compensation costs 3.6 3.8 3.5 2.6 3.2 3.2
Wages and salaries 2.9 2.6 2.7 2.4 3.6 3.2
Benefit costs 5.7 6.8 5.5 3.0 2.2 3.2
State and local government government
Compensation costs 4.3 3.4 3.6 3.7 4.6 3.6
Wages and salaries 3.2 2.1 2.3 2.8 3.8 3.5
Benefit costs 6.6 6.4 6.7 5.4 6.3 4.1
Nonfarm private industry
For the year ended March 2008, private industry compensation costs increased 3.1 percent
for goods-producing industries, compared to a 2.6 percent increase in March 2007. Compensation
cost increases for manufacturing remained low, at 2.6 percent for the year ended March 2008,
compared to 1.9 percent for the year ended March 2007. Compensation costs for the construction
industry rose 4.0 percent, the same as in the previous year. (See table 5.)
The over-the-year increase for March 2008 in compensation costs for service-providing
industries was 3.3 percent. The March 2007 increase was also 3.3 percent. Among the major
service-providing industries, compensation gains ranged from 1.7 percent in information to
4.1 percent in professional and business services. (See table 5.)
Among private industry occupational groups, over-the-year compensation gains ranged from
2.8 percent for sales and office to 3.5 percent for natural resources, construction, and
maintenance. (See table 5.)
Compensation costs for union workers advanced 3.1 percent for the year ended March 2008 while
compensation cost increases for nonunion workers increased 3.2 percent for the same 12-month
period. Wages and salaries for union workers increased 2.6 percent for the 12-month period ended
March 2008, less than those for nonunion workers, which rose 3.3 percent. Benefit costs for
union workers rose 4.1 percent for the 12-month period, which was more than benefit cost increases
for nonunion workers, which rose 3.0 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
Mar. Mar. Mar. Mar. Mar. Mar.
Compensation component 2003 2004 2005 2006 2007 2008
Union workers
Compensation costs 4.4 5.6 3.6 2.7 2.2 3.1
Wages and salaries 3.1 2.8 2.4 2.5 2.5 2.6
Benefit costs 6.7 10.6 5.6 2.9 1.6 4.1
Nonunion workers
Compensation costs 3.5 3.5 3.5 2.6 3.3 3.2
Wages and salaries 2.8 2.7 2.6 2.5 3.7 3.3
Benefit costs 5.5 5.9 5.6 2.9 2.4 3.0
State and local government
For the year ended March 2008, wages and salaries for state and local government workers
rose 3.5 percent. The increase for the 12-month period ended March 2007 was 3.8 percent.
Benefit costs increased 4.1 percent, less than the increase of 6.3 percent in the previous year.
Wages and salaries for health care and social assistance increased 3.3 percent, down from
5.5 percent a year earlier. Public administration wages and salaries increased 3.5 percent.
In March 2007 the increase was 4.0 percent. Education services wages and salaries increased
3.4 percent. A year earlier the increase was 3.6 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 0.7 percent for the 12-month period ended March 2008,
compared to a 0.7 percent increase for the 12-month period ended March 2007. The decrease for
private industry was 0.8 percent compared to an increase of 0.7 percent for the year ended
March 2007. State and local government registered a 0.5 percent decrease, compared to an increase
of 1.0 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
Mar. Mar. Mar. Mar. Mar. Mar.
Compensation component 2003 2004 2005 2006 2007 2008
Civilian workers -0.1 0.8 -0.6 -0.7 0.7 -0.7
Occupation
Management, professional, and related 0.2 0.9 -0.5 -0.8 1.0 -0.6
Sales and office -0.3 1.1 -0.3 -0.7 0.6 -1.1
Natural resources, construction,
and maintenance 0.0 0.9 -1.0 -0.4 0.7 -0.3
Production, transportation, and
material moving -0.6 0.4 -0.7 -1.0 -0.2 -1.1
Service -0.8 0.4 -0.9 -1.0 1.2 -0.6
Industry
Goods-producing -0.2 0.7 -0.7 -0.5 0.3 -0.8
Service-providing -0.1 0.8 -0.5 -0.8 0.8 -0.8
Private industry -0.2 0.9 -0.5 -0.9 0.7 -0.8
State and local government 0.2 0.4 -0.8 -0.6 1.0 -0.5
________________________________________________________________________________________
NOTE:
Effective with the release of December 2008 data, series for metropolitan areas and
nonmetropolitan areas, which appear in tables 6 and 10, will be discontinued as a result
of the classification changes to metropolitan statistical areas.
The ECI for June 2008 is scheduled to be released Thursday, July 31, 2008, at
8:30 AM EDT.
This release incorporates annual revisions in seasonally adjusted Employment Cost
Index (ECI) data for total compensation, wages and salaries, and benefit costs. Seasonally
adjusted data for 2003-2007 were revised to reflect updated seasonal factors. The new
seasonal factors and historical listings containing revised seasonally adjusted indexes
are available on the Internet site www.bls.gov/ect, by email to NCSinfo@bls.gov, or
telephone to (202) 691-6199.
ECI data are available on the Compensation Cost Trends page at www.bls.gov/ect. For
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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
