December 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 0.5 percent from September to December 2008, seasonally adjusted, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This follows three consecutive quarterly increases of 0.7 percent. In the December quarter, wages and salaries rose 0.5 percent and benefits rose 0.4 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 0.5 percent from September to December 2008; the prior quarter increase was 0.6 percent. For the December quarter, state and local government compensation increased 0.5 percent. The prior quarter’s increase was 0.9 percent. Wages and salaries for private industry workers increased 0.6 percent for the September to December 2008 period, the same as for the prior quarter. In state and local government, wages and salaries increase was 0.4 percent--smaller than the 1.0 percent increase in the prior quarter. Benefit costs for private industry rose 0.4 percent, compared to 0.6 percent in the previous quarter. For state and local government, benefit costs increased 0.8 percent, compared to the 0.7 percent increase in the previous quarter. (See tables A, 1, 2, and 3.)

Metropolitan and Nonmetropolitan Area Data Series

Effective with this release, compensation and wage and salary data aggregated across all metropolitan and nonmetropolitan areas--which previously appeared in tables 6 and 10--have been discontinued as a result of classification changes to metropolitan statistical areas.

Over-the-year changes, not seasonally adjusted

Compensation costs for civilian workers increased 2.6 percent for the year ended December 2008, less than the 3.3 percent increase for the year ended December 2007. In private industry, compensation costs rose 2.4 percent in the year ended December 2008, less than the increase for the year ended December 2007, which was 3.0 percent. For state and local government, the increase for the 12-month period ended December 2008 was 3.0 percent, less than the December 2007 increase of 4.1 percent. Wages and salaries for civilian workers increased 2.7 percent for the 12-month period; down from the December 2007 increase of 3.4 percent. Private industry wages and salaries increased 2.6 percent in December 2008. In December 2007 the increase was 3.3 percent. State and local government wages and salaries increased 3.1 percent for the year ended December 2008. The increase for the 12-month period ending December 2007 was 3.5 percent. Benefits increased 2.2 percent for civilian workers. In private industry, benefit costs increased 2.0 percent, less than the increase for state and local government, which was 2.9 percent for the 12-month period ended December 2008. (See table B.)

Nonfarm private industry

For the year ended December 2008, private industry compensation costs increased 2.4 percent for goods-producing industries, the same as the increase in December 2007. Compensation costs for manufacturing increased 2.0 percent for the year ended December 2008, also the same as for the year ended December 2007. In the construction industry, compensation costs rose 3.1 percent compared to 3.9 percent for the 12-month period ending December 2007. (See table 5.)

The over-the-year increase for December 2008 in compensation costs for service-providing industries slowed to 2.5 percent. The December 2007 increase was 3.2 percent. Among the major service-providing industries, changes in compensation costs ranged from 1.2 percent in information to 3.8 percent in professional and business services. (See table 5.)

Among private industry occupational groups, over-the-year compensation gains ranged from 1.7 percent for sales and office occupations to 2.9 percent for management, professional, and related occupations. (See table 5.)

Compensation costs for union workers advanced 2.8 percent in the year ended December 2008, while compensation costs for nonunion workers increased 2.4 percent. Wages and salaries for union workers increased 3.2 percent in the 12-month period ended December 2008. Nonunion workers saw a smaller increase of 2.5 percent. Benefit costs rose 1.9 percent in the 12-month period for both union and nonunion workers. (See tables C, 6, 10, and 12.)

State and local government

For the year ended December 2008, wages and salaries for state and local government workers rose 3.1 percent. The increase for the 12-month period ended December 2007 was 3.5 percent. Benefit costs increased 2.9 percent for the current 12-month period, less than the 5.5 percent increase for the previous year. Public administration wages and salaries increased 2.8 percent, also less than its December 2007 12-month percent increase of 3.8 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 increased 2.6 percent for the 12-month period ended December 2008, compared to a 0.7 percent decrease for the 12-month period ended December 2007. The increase for private industry was 2.5 percent compared to a decrease of 0.7 percent for the year ended December 2007. State and local government registered a 3.0 percent increase, compared to a decrease of 0.6 percent for the previous year. (See table D.)

This quarter’s ECI estimates for 14 individual localities (introduced in the June 2008 reference period) will be released Tuesday, February 24, 2009. For each locality, two private industry 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 March 2009 is scheduled for release on Thursday, April 30, 2009, at 8:30 AM EDT.

New seasonal factors for 2009, along with revised seasonally adjusted indexes for the past five years will be available Tuesday, April 28, 2009 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 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.