June 2001 Employment Cost Index

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The Employment Cost Index (not seasonally adjusted) for June 2001 was 153.8 (June 1989=100), an increase of 3.9 percent from June 2000, the U.S. Department of Labor's Bureau of Labor Statistics reported today. The Employment Cost Index (ECI) measures changes in compensation costs, which include wages, salaries, and employer costs for employee benefits.

Quarterly changes, seasonally adjusted

On a seasonally adjusted basis, the 3-month increase in compensation costs for civilian workers (nonfarm private industry plus State and local government) was 0.9 percent during the March-June 2001 period, following a gain of 1.1 percent in December 2000-March 2001. Wages and salaries increased 1.0 percent during the March-June 2001 period, identical to the change in the previous 3-month period. Benefit costs rose 1.0 percent during the June 2001 quarter, following a 1.3 percent increase in the March 2001 quarter.

The 3-month increase in compensation costs for private industry workers was 1.0 percent during the March-June 2001 period. The gain in wages and salaries was 0.9 in the quarter ended in June; in the March quarter, it was 1.1. Benefit costs showed a 3-month rise of 0.9 percent during the June 2001 quarter, falling from the 1.4 percent gain during the March 2001 quarter. (See tables A and 1.)

The 3-month increases in compensation costs and wages and salaries for State and local government workers were 1.1 percent during the March-June 2001 period. In the December 2000-March 2001 period, comparable increases for compensation costs and wages and salaries were 1.0 percent. Benefit costs rose 1.1 percent during the June 2001 quarter; in the March 2001 quarter, the increase was 1.2 percent.

Over-the-year changes, not seasonally adjusted

Compensation costs for civilian workers (not seasonally adjusted) increased 3.9 percent for the 12 months ended in June 2001. This compares with over-the-year increases of 4.4 percent in June 2000 and 3.2 percent in June 1999. Compensation costs in private industry rose 4.0 percent in the year ended June 2001, compared with increases of 4.6 percent in June 2000 and 3.3 percent in June 1999. In State and local government, compensation costs increased 3.6 percent for the year ended June 2001; over-the-year increases were 3.5 percent in June 2000 and 3.0 percent in June 1999. (See tables B, 2, and 3.)

Nonfarm private industry

In private industry, wages and salaries rose 3.8 percent for the year ended June 2001, after increasing 4.1 percent in the year ended June 2000. (See tables B and 6.) Benefit costs for private industry workers increased 4.8 percent for the year ended in June 2001, moderating from the increase of 5.7 percent in June 2000. (See chart A and tables B and 8.)

In private industry, over-the-year compensation cost increases were 4.2 percent for white-collar occupations, 3.6 percent for blue-collar occupations, and 4.1 percent for service occupations. Among the occupational groups, increases in compensation costs ranged from 2.8 percent each for sales workers and for machine operators, assemblers, and inspectors to 4.7 percent for administrative support, including clerical occupations. (See table 3.)

For the year ended June 2001, the compensation cost increase was 3.8 percent for goods-producing industries, compared with a 4.8 percent increase for the year ended June 2000. The over-the-year increase in compensation for service-producing industries was 4.2 percent, compared with a 4.4 percent increase for the year ended June 2000. Among service- producing industry divisions, June 2000-to-June 2001 increases ranged from 3.4 percent in retail trade to 6.8 percent in communications. (See table 3.)

Compensation costs for nonunion workers rose 4.2 percent over the year, compared with 3.5 percent for union workers. In service-producing industries, nonunion compensation increased 4.2 percent, compared with a 3.9 percent increase for union workers. In goods-producing industries, the increase for nonunion workers was 4.0 percent, greater than the 3.1 percent gain for union workers. Among the four geographic regions, increases in compensation costs ranged from 3.5 percent in the Midwest to 4.8 percent in the West. (See table 4.)

State and local government

In State and local government, the June 2001 over-the-year increase in wages and salaries was 3.7 percent, identical with that recorded for June 2000. The 12-month gain in benefit costs for June 2001 was 3.4 percent; in June 2000, the gain was 3.1 percent. (See tables B, 5, and 8.)

ECI data are available on the ECI home page http://www.bls.gov/ecthome.htm. To access data using Anonymous FTP, use the Internet address ftp://ftp.bls.gov.

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