December 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 September to December 2007, seasonally adjusted, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This was the same increase as the June to September period. Both components of compensation rose about the same amount--wages and salaries rose 0.8 percent and benefits rose 0.9 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 both private industry and state and local government rose 0.8 percent from September to December 2007, the same as for the prior quarter. Wages and salaries for private industry workers increased 0.8 percent for the September to December 2007 period, the same as the previous quarter. In state and local government, the increase was also 0.8 percent, compared with 1.0 percent in the prior quarter. Benefit costs for private industry rose 0.9 percent, compared to 0.8 percent the previous quarter. For state and local government, benefit costs increased 0.9 percent, compared to 0.7 percent in the previous quarter. (See tables A, 1, 2, and 3.)

Over-the-year changes, not seasonally adjusted

Compensation costs for civilian workers increased 3.3 percent for the year ended December 2007, the same as for the year ended December 2006. In private industry, compensation costs rose 3.0 percent in the year ended December 2007. In December 2006 the increase was 3.2 percent. For state and local government, the increase for the 12-month period ended December 2007 was 4.1 percent, the same as the December 2006 increase. Wages and salaries for civilian workers increased 3.4 percent for the 12-month period. In December 2006, the increase was 3.2 percent. Private industry and state and local government changes for wages and salaries were similar to the civilian worker changes. However, benefits--which increased 3.1 percent for civilian workers--differed by ownership sector. Private industry benefit costs increased 2.4 percent, less than the state and local government increase of 5.5 percent for the 12-month period ended December 2007. (See table B.)

Nonfarm private industry

For the year ended December 2007, private industry compensation costs increased 2.4 percent for goods-producing industries, compared to a 2.5 percent increase in December 2006. Compensation cost increases for manufacturing remained low, at 2.0 percent for the year ended December 2007, compared to 1.8 percent for the year ended December 2006. Compensation costs for the construction industry rose 3.9 percent, compared to 3.6 percent for the previous year. (See table 5.)

The over-the-year increase for December 2007 in compensation costs for service-providing industries was 3.2 percent. The December 2006 increase was 3.4 percent. Among the major service-providing industries, compensation gains ranged from 2.4 percent in trade, transportation, and utilities to 4.2 percent in leisure and hospitality. (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 3.8 percent for service occupations. (See table 5.)

Compensation costs for union workers advanced 2.0 percent for the year ended December 2007. This was less than the compensation cost increases for nonunion workers, which increased 3.2 percent for the same 12-month period. Wages and salaries for union workers increased 2.3 percent for the 12-month period ended December 2007, less than that for nonunion workers, which rose 3.5 percent. Benefit costs for union workers rose 1.5 percent for the 12-month period, which was also less than benefit cost increases for nonunion workers, which rose 2.6 percent. (See tables C, 6, 10, and 12.)

State and local government

For the year ended December 2007, wages and salaries for state and local government workers rose 3.5 percent, the same as the increase for the 12-month period ended December 2006. For benefits, costs increased 5.5 percent compared to 5.2 percent for the previous year. Wages and salaries for health care and social assistance increased 3.5 percent, down from 5.5 percent a year earlier. Public administration wages and salaries increased 3.8 percent. In December 2006 the increase was 3.5 percent. Education services wages and salaries increased 3.3 percent, about the same as the 3.4 percent increase 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 decreased 0.7 percent for the 12-month period ended December 2007, compared to a 0.7 percent increase for the 12-month period ended December 2006. The decrease for private industry was 0.7 percent compared to an increase of 0.6 percent for the year ended December 2006. State and local government registered a 0.6 percent decrease, compared to an increase of 1.0 percent for the previous year. (See table D.)

New seasonal factors for 2008, along with revised seasonally adjusted indexes for the past five years will be available Friday, April 25, 2008 at www.bls.gov/ect, by email to NCSinfo@bls.gov, or by calling (202) 691-6199.

ECI data are available on the Compensation Cost Trends page at www.bls.gov/ect. For ECI data requests, send e-mail to NCSinfo@bls.gov. For technical assistance in using the BLS Internet site, send e-mail to webmaster@bls.gov.

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