March 2009 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 0.3 percent from December 2008 to March 2009, seasonally adjusted, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This follows a 0.6 percent increase for the September to December 2008 period. In March 2009, wages and salaries also rose 0.3 percent, while benefits rose 0.5 percent. The Employment Cost Index (ECI), a product of the National Compensation Survey, measures changes in compensation costs for civilian workers (nonfarm private industry and state and local government workers).

3-month percent changes, seasonally adjusted

Compensation costs for private industry rose 0.2 percent from December 2008 to March 2009; the prior period increase was 0.5 percent. For March 2009, state and local government compensation increased 0.8 percent. The prior period’s increase was 0.6 percent. Wages and salaries for private industry workers increased 0.2 percent from December 2008 to March 2009, compared to 0.5 percent for the previous period. In state and local government, wages and salaries increased 0.7 percent. The prior period increase was 0.5 percent. Benefit cost increases for private industry were 0.2 percent, compared to 0.4 percent in the previous period. For state and local government, benefit costs increased 1.1 percent, up from 0.7 percent in the previous period. (See tables A, 1, 2, and 3.)

Over-the-year changes, not seasonally adjusted

Compensation cost increases for civilian workers for the year ended March 2009 slowed dramatically, increasing 2.1 percent, down from the 3.3 percent increase for the year ended March 2008. In private industry, compensation costs rose 1.9 percent in the year ended March 2009, significantly less than the increase for the year ended March 2008, which was 3.2 percent. For state and local government, the increase for the 12-month period ended March 2009 was 3.1 percent, also slowing down from the March 2008 increase of 3.6 percent. Wages and salaries for civilian workers increased 2.2 percent for the 12-month period; down from the March 2008 increase of 3.2 percent. Private industry wages and salaries decelerated to a 2.0 percent increase for the year ended March 2009. In March 2008 the increase was 3.2 percent. State and local government wages and salaries increased 3.0 percent for the year ended March 2009, slowing less dramatically than in private industry. The increase for the 12-month period ending March 2008 was 3.5 percent. Benefits increased 2.0 percent for civilian workers. In private industry, benefit costs increased 1.6 percent, much less than the increase for state and local government, which was 3.4 percent for the 12-month period ended March 2009. (See table B.)

Nonfarm private industry

For the year ended March 2009, private industry compensation costs increased 1.7 percent for goods-producing industries, slowing from an increase of 3.1 percent in March 2008. Compensation costs for manufacturing increased 1.7 percent for the year ended March 2009, slowing from a 2.6 percent increase in March 2008. In the construction industry, compensation costs rose 1.8 percent compared to 4.0 percent for the 12-month period ending March 2008. (See table 5.)

The over-the-year increase for March 2009 in compensation costs for service-providing industries slowed to 1.9 percent, down from the March 2008 increase of 3.3 percent. Among the major service-providing industries, changes in compensation costs ranged from no change in financial activities to 2.9 percent in leisure and hospitality. (See table 5.)

Among private industry occupational groups, over-the-year compensation gains ranged from 1.2 percent for sales and office occupations to 2.7 percent for service occupations. (See table 5.)

Compensation cost increases for union workers were greater than for nonunion workers, advancing 3.0 percent in the year ended March 2009. Compensation costs for nonunion workers increased 1.8 percent. Wages and salaries for union workers increased 3.1 percent in the 12-month period ended March 2009 while nonunion workers saw a smaller increase of 1.9 percent. Benefit costs rose 2.7 percent in the 12-month period for union workers, also higher than the increase of 1.3 percent for nonunion workers. (See tables C, 6, 10, and 12.)

State and local government

For the year ended March 2009, wages and salaries for state and local government workers rose 3.0 percent. The increase for the 12-month period ended March 2008 was 3.5 percent. Benefit costs increased 3.4 percent for the current 12-month period, down from a 4.1 percent increase for the previous year. Public administration wages and salaries increased 2.9 percent, also less than its March 2008 12-month percent increase of 3.5 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 March 2009, compared to a 0.7 percent decrease for the 12-month period ended March 2008. The increase for private industry was 2.5 percent, compared to a decrease of 0.8 percent for the year ended March 2008. State and local government registered a 3.3 percent increase, compared to a decrease of 0.5 percent for the previous year. (See table D.)

The March 2009 ECI estimates for 14 individual localities (introduced in the June 2008 reference period) is scheduled for release on Tuesday, May 19, 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. 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 June 2009 is scheduled for release on Friday, July 31, 2009, at 8:30 AM EDT.

This release incorporates annual revisions in seasonally adjusted Employment Cost Index (ECI) data for total compensation, wages and salaries, and benefit costs. Seasonally adjusted data for 2004-2008 were revised to reflect updated seasonal factors. The new seasonal factors and historical listings containing revised seasonally adjusted indexes are available at www.bls.gov/ect, by email to NCSinfo@bls.gov, or telephone to (202) 691-6199.

ECI data are available on the Employment 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/bls/list.htm.

Beginning with the next edition of the Employment Cost Index news release scheduled for publication on July 31, 2009, the Bureau of Labor Statistics will introduce some changes to how the text section is written. There will be no change to the data. A note will be posted on the BLS web site shortly. See http://www.bls.gov/newsroom/.