March 1996 Employment Cost Index

Historical release narrative reproduced from the official public-domain source. Statistical tables, standard technical appendices, administrative material and attendance rosters are omitted; formatting is adapted for reading. Figures retain the release's historical context and may have been revised. Consult the linked source for the complete document.

The Employment Cost Index (ECI) increased 0.9 percent before seasonal adjustment in the 3 months ended in March 1996, the U.S. Department of Labor's Bureau of Labor Statistics reported today. The March 1996 ECI level of 128.5 (June 1989=100) was 3.0 percent higher than in March 1995. The ECI measures changes in compensation costs, including wages, salaries, and employer costs for employee benefits.

Quarterly changes, seasonally adjusted

On a seasonally adjusted basis, ECI compensation costs rose 0.7 percent in the December 1995-March 1996 period, compared with 0.8 percent in the September-December 1995 period. (See table A below.) ECI wages and salaries rose 1.0 percent in the December 1995-March 1996 period, up from 0.7 percent in the September-December 1995 period. Benefit costs decreased 0.1 percent for the quarter compared with an increase of 1.0 percent for the September-December 1995 quarter.

Wages and salaries... 0.8 0.8 0.7 0.7 0.7 0.7 0.7 1.0 3.2

This release includes annual revisions in seasonally adjusted Employment Cost Indexes for compensation costs, wages and salaries, and benefit costs. Seasonally adjusted indexes for 1991-95 were revised to reflect updated seasonal factors and are available upon request. The seasonal factors for 1996 will be published in the June 1996 issue of the BLS periodical, Compensation and Working Conditions.

Over the year changes, unadjusted

Compensation costs for civilian workers (not seasonally adjusted) increased 3.0 percent for the year ended in March 1996, about the same as the 2.9 percent increase for the year ended in March 1995. Compensation costs for private industry workers rose 3.0 percent, while state and local government rose 2.8 percent.

For private industry workers, wages and salaries increased 3.3 percent, the largest increase in 4 years. Benefit costs increased 2.0 percent, the lowest 12-month increase since the series began in 1980. This moderation in benefit cost increases reflects a slowdown in nonproduction bonuses, health benefits, unemployment insurance, and workers' compensation.

For the year ended in March 1996, compensation costs in service- producing industries increased 3.4 percent compared with 2.2 percent for goods-producing industries. This pattern held for both wages and salaries and benefits. Wages and salaries increased 3.5 percent in service- producing industries, compared with 2.8 percent in good-producing industries; benefits increased 2.6 and 1.0 percent, respectively.

Compensation costs for white-collar workers increased 3.4 percent compared with 2.2 percent for blue-collar workers and service occupations. This continued a trend of larger increases for white-collar workers, which has occurred over most of the last 15 years. (See table B.)

Compensation Wages and salaries

Industry White- Blue- Service White- Blue- Service sector collar collar workers collar collar workers

All industries.. 3.4 2.2 2.2 3.7 2.7 2.3

Service- producing industries... 3.8 2.0 2.1 4.0 2.2 2.3

Compensation cost gains over the year ended in March 1996 were higher for nonunion workers (3.1 percent) compared with union workers (2.7 percent). This pattern held for the goods-producing industries (2.3 percent for nonunion and 2.0 percent for union), but not for service- producing industries (3.3 percent for nonunion and 3.4 percent for union).

BLS Data Now Available on the World Wide Web

ECI data, as well as other data produced by BLS, are now available on the World Wide Web. To access ECI data use the address: http://stats.bls.gov/ecthome.htm. To access the BLS Home Page use: http://stats.bls.gov. There is no charge from BLS for using this service; however, there may be a charge from your Internet service provider. To access data using GOPHER or Anonymous FTP, use the Internet address: stats.bls.gov.

For technical assistance in using the BLS Internet site, send e-mail to: labstat.helpdesk@bls.gov. For ECI data requests, send e-mail to: ocltinfo@bls.gov.