September 2007 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.

Total compensation costs for civilian workers increased 0.8 percent from June to September 2007, seasonally adjusted, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This was about the same as the 0.9 percent increase for the March to June period. Both components of compensation-wages and salaries and benefits-rose the same amount, 0.8 percent. In the previous quarter, wages and salaries also increased 0.8 percent and benefits increased 1.3 percent. The Employment Cost Index (ECI), a component 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

For private industry, compensation costs rose 0.8 percent from June to September 2007, compared to 0.9 percent for the prior quarter, while state and local government costs increased 0.8 percent, compared to 1.1 percent for the quarter ended June 2007. (See tables A and 1.)

Wages and salaries for private industry workers increased 0.8 percent, the same as the previous quarter. In state and local government, the increase was 1.0 percent, compared with 0.8 percent in the prior quarter. (See tables A and 2.)

Benefit costs for private industry rose 0.8 percent, compared to 1.1 percent the previous quarter. For state and local government, benefit costs increased 0.7 percent, compared to 1.7 percent in the previous quarter. (See tables A and 3.)

Over-the-year changes, not seasonally adjusted

Compensation costs for civilian workers increased 3.3 percent for the year ended September 2007, the same as for the year ended September 2006. In private industry, compensation costs rose 3.1 percent in the year ended September 2007, about the same as the September 2006 increase of 3.0 percent. For state and local government, for the 12 months ended September 2007, the increase was 4.3 percent. In September 2006 the increase was 4.1 percent. The components of compensation were similar in their rates of change and little changed over the year. (See tables B, 4, 5, and 7.)

Nonfarm private industry

For the year ended September 2007, compensation costs increased 2.4 percent for goods-producing industries, compared to a 2.2 percent increase in September 2006. Compensation cost increases for manufacturing remained low, at 1.8 percent for the year ended September 2007, compared to 1.6 percent for the year ended September 2006. Compensation costs for the construction industry rose 3.8 percent, compared to 3.3 percent for the previous year. (See table 5.)

The over-the-year increase for September 2007 in compensation costs for service-providing industries was 3.3 percent, about the same as the September 2006 increase of 3.2 percent. Among the major service-providing industries, compensation gains ranged from 2.2 percent in the trade, transportation, and utilities industries to 5.0 percent in the leisure and hospitality industry. (See table 5.)

Among private industry occupational groups, over-the-year compensation gains ranged from 2.2 percent for production, transportation, and material moving to 4.0 percent for service occupations. (See table 5.)

Compensation costs for union workers advanced 2.0 percent for the year ended September 2007. This was outpaced by the compensation of nonunion workers, which increased 3.2 percent for the same 12-month period. Wages and salaries for union workers increased 2.7 percent for the 12-month period ended September 2007, less than that for nonunion workers, which rose 3.4 percent. Benefit costs for union workers rose 0.9 percent for the 12-month period, which were also less than benefit cost increases for nonunion workers, which rose 2.7 percent. (See tables C, 6, 10, and 12.)

State and local government

For the year ended September 2007, wages and salaries for state and local government workers rose 3.5 percent compared to 3.7 percent a year ago. For benefits, costs increased 6.0 percent compared to 5.2 percent for the previous year. Wages and salaries for hospitals rose to 4.4 percent from 3.7 percent a year earlier. Public administration wages and salaries increased 4.3 percent, up from 2.7 percent while education services wages and salaries increased 3.0 percent compared to 4.1 percent the year earlier. (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 increased 0.6 percent for the 12-month period ended September 2007, compared to a 1.1 percent increase for the 12-month period ending September 2006. The increase for private industry was 0.5 percent compared to an increase of 1.0 percent for the year ending September 2006. State and local government registered a 0.7 percent increase, compared to an increase of 1.6 percent for the previous year. (See table D.)

Sector, occupational group and industry Sep. Sep. Sep. Sep. Sep. Sep. 2002 2003 2004 2005 2006 2007 Civilian workers 1.5 0.6 0.0 -2.3 1.1 0.6 Occupation Management, professional, and related 1.5 0.8 -0.1 -2.2 1.5 0.7 Sales and office 1.9 0.8 0.4 -2.4 1.0 0.2 Natural resources, construction, and maintenance 1.3 0.3 -0.2 -2.1 1.3 0.6 Production, transportation, and material moving 1.4 0.2 0.0 -2.5 0.2 0.0 Service 1.5 0.0 -0.6 -2.1 0.6 1.5 Industry Goods producing 1.3 0.6 0.3 -2.3 0.7 0.3 Service providing 1.6 0.6 -0.1 -2.3 1.2 0.6 Private industry 1.5 0.8 0.0 -2.3 1.0 0.5 State and local government 1.5 0.1 -0.5 -2.0 1.6 0.7

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