September 2008 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 0.7 percent from June to September 2008, seasonally adjusted, the Bureau of Labor Statistics of the U.S. Department of Labor reported today, the same as the increase for the last two quarters. Both components of compensation--wages and salaries and benefits--registered increases that were the same as the previous quarter. Wages and salaries rose 0.7 percent and benefits rose 0.6 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 0.6 percent from June to September 2008, the same as the increase for the prior quarter. In state and local government, the increase was 0.9 percent, also the same as in the previous quarter. Wages and salaries for private industry workers increased 0.6 percent for the June to September 2008 period. For the previous quarter, the increase was 0.7 percent. In state and local government, the increase was 1.0 percent, compared with 0.9 percent in the prior quarter. Benefit costs for private industry rose 0.6 percent, compared to 0.5 percent in the previous quarter. For state and local government, benefit costs increased 0.7 percent, less than the 1.1 percent increase in the previous quarter. (See tables A, 1, 2, and 3.)

Metropolitan and Nonmetropolitan Area Data Series

There will be changes to the availability of Employment Cost Index (ECI) data for metropolitan and nonmetropolitan areas. See note on page 4 for additional information.

Over-the-year changes, not seasonally adjusted

Compensation costs for civilian workers increased 2.9 percent for the year ended September 2008, less than the 3.3 percent increase for the year ended September 2007. In private industry, compensation costs rose 2.8 percent in the year ended September 2008; the increase for the year ended September 2007 was 3.1 percent. For state and local government, the increase for the 12-month period ended September 2008 was 3.4 percent, down from the September 2007 increase of 4.3 percent. Wages and salaries for civilian workers increased 3.1 percent for the 12-month period; in September 2007, the increase was 3.3 percent. Private industry wages and salaries increased 2.9 percent in September 2008. In September 2007 the increase was 3.4 percent. State and local government wages and salaries increased 3.5 percent for the year ended September 2008, the same as the increase in September 2007. Benefits increased 2.6 percent for civilian workers. In private industry, benefit costs increased 2.4 percent, less than the increase for state and local government, which was 3.3 percent for the 12-month period ended September 2008. (See table B.)

Nonfarm private industry

For the year ended September 2008, private industry compensation costs increased 2.7 percent for goods-producing industries, compared to a 2.4 percent increase in September 2007. Compensation costs for manufacturing increased 2.3 percent for the year ended September 2008, compared to 1.8 percent for the year ended September 2007. In the construction industry, compensation costs rose 3.5 percent compared to 3.8 percent for the 12-month period ending September 2007. (See table 5.)

The over-the-year increase for September 2008 in compensation costs for service-providing industries was 2.8 percent. The September 2007 increase was 3.3 percent. Among the major service-providing industries, changes in compensation costs ranged from 1.3 percent in information to 3.6 percent in professional and business services. (See table 5.)

Among private industry occupational groups, over-the-year compensation gains ranged from 2.5 percent for sales and office occupations to 3.0 percent for management, professional, and related occupations. (See table 5.)

Compensation costs for union workers advanced 2.9 percent in the year ended September 2008 while compensation cost increases for nonunion workers increased 2.8 percent in the same 12-month period. Wages and salaries for union workers increased 2.9 percent in the 12-month period ended September 2008. For nonunion workers, the increase was 3.0 percent. Benefit costs for union workers rose 2.8 percent in the 12-month period; costs for nonunion workers rose 2.4 percent. (See tables C, 6, 10, and 12.)

State and local government

For the year ended September 2008, wages and salaries for state and local government workers rose 3.5 percent, the same as the increase for the 12-month period ended September 2007. Benefit costs increased 3.3 percent for the current 12-month period, less than the increase for the previous year, which was 6.0 percent. Public administration wages and salaries increased 3.3 percent, also less than its September 2007 12-month percent increase of 4.3 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 1.8 percent for the 12-month period ended September 2008, compared to a 0.6 percent increase for the 12-month period ended September 2007. The decrease for private industry was 1.8 percent compared to an increase of 0.5 percent for the year ended September 2007. State and local government registered a 1.4 percent decrease, compared to an increase of 0.7 percent for the previous year. (See table D.)

Effective with the release of December 2008 data, compensation and wage and salary data aggregated across all metropolitan and nonmetropolitan areas--which currently appear in tables 6 and 10--will be discontinued as a result of classification changes to metropolitan statistical areas.

This quarter’s ECI estimates for private industry for 14 individual localities (introduced last quarter) will be released Thursday, November 20, 2008. For each locality, two estimates are provided: 12-month percent change for total compensation and 12-month percent change for wages and salaries. The data will be available at www.bls.gov/ect as well as in news releases for each area. The regional news releases providing ECI estimates for the four regions and nine census divisions have been discontinued. However, those estimates are still included in tables 6 and 10 of this news release. For additional information, see "BLS Introduces New Employment Cost Indexes for 14 Metropolitan Areas," at www.bls.gov/opub/cwc/cm20080922ar01p1.htm.

The ECI for December 2008 is scheduled for release on Friday, January 30, 2009, at 8:30 AM EST.

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 or call (202)691-6199. For technical assistance in using the BLS Internet site, send e-mail to webmaster@bls.gov.

BLS news releases, including the ECI, are available through an e-mail subscription service. See the subscription link at www.bls.gov/ect or www.bls.gov/bls/list.htm.