December 2020 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.

Compensation costs for civilian workers increased 0.7 percent, seasonally adjusted, for the 3-month period ending in December 2020, the U.S. Bureau of Labor Statistics reported today. Wages and salaries increased 0.9 percent and benefit costs increased 0.6 percent from September 2020. (See tables A, 1, 2, and 3.)

Compensation costs for civilian workers increased 2.5 percent for the 12-month period ending in December 2020 and increased 2.7 percent in December 2019. Wages and salaries increased 2.6 percent over the year and increased 2.9 percent for the 12-month period ending in December 2019. Benefit costs increased 2.3 percent over the year and increased 2.2 percent for the 12-month period ending in December 2019. (See tables A, 4, 8, and 12.)

Compensation costs for private industry workers increased 2.6 percent over the year. In December 2019, the increase was 2.7 percent. Wages and salaries increased 2.8 percent for the 12-month period ending in December 2020 and increased 3.0 percent in December 2019. The cost of benefits increased 2.1 percent for the 12-month period ending in December 2020 and increased 1.9 percent in December 2019. (See tables A, 5, 9, and 12.)

Employer costs for health benefits increased 1.9 percent for the 12-month period ending in December 2020.(For further information see www.bls.gov/web/eci/echealth.pdf.)

Among private industry occupational groups, compensation cost increases for the 12-month period ending in December 2020 ranged from 2.0 percent for management, professional, and related occupations to 3.6 percent for service occupations. Within industry supersectors, compensation cost increases ranged from 2.2 percent for both other services and education and health services to 3.4 percent for leisure and hospitality. (See table 5.)

Compensation costs for state and local government workers increased 2.3 percent for the 12-month period ending in December 2020, compared with an increase of 2.9 percent in December 2019. Wages and salaries increased 1.8 percent for the 12-month period ending in December 2020 and 2.5 percent a year ago. Benefit costs increased 3.1 percent for the 12-month period ending in December 2020. The prior year increase was 3.3 percent. (See tables A, 7, 11, and 12.)

Coronavirus (COVID-19) Pandemic Impact on the December 2020 Employment Cost Index Response rates for December were comparable with prior releases and no changes in estimation procedures were necessary. Additional information is available at www.bls.gov/bls/effects-of- covid-19-on-workplace-injuries-and-illnesses-compensation-and-occupational-requirements.htm#ECI.