March 2023 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 1.2 percent, seasonally adjusted, for the 3-month period ending in March 2023, the U.S. Bureau of Labor Statistics reported today. Wages and salaries increased 1.2 percent and benefit costs increased 1.2 percent from December 2022. (See tables A, 1, 2, and 3.)

Compensation costs for civilian workers increased 4.8 percent for the 12-month period ending in March 2023 and increased 4.5 percent in March 2022. Wages and salaries increased 5.0 percent for the 12-month period ending in March 2023 and increased 4.7 percent for the 12-month period ending in March 2022. Benefit costs increased 4.5 percent over the year and increased 4.1 percent for the 12-month period ending in March 2022. (See tables A, 4, 8, and 12.)

Compensation costs for private industry workers increased 4.8 percent over the year. In March 2022, the increase was 4.8 percent. Wages and salaries increased 5.1 percent for the 12-month period ending in March 2023 and increased 5.0 percent in March 2022. The cost of benefits increased 4.3 percent for the 12-month period ending in March 2023 and increased 4.1 percent in March 2022. Inflation-adjusted (constant dollar) private wages and salaries increased 0.1 percent for the 12 months ending March 2023. Inflation-adjusted benefit costs in the private sector declined 0.6 percent over that same period. (See tables A, 5, 9, and 12.)

Among private industry occupational groups, compensation cost increases for the 12-month period ending in March 2023 ranged from 4.3 percent for management, professional, and related occupations and natural resources, construction, and maintenance occupations, to 6.0 percent for service occupations. Within industry supersectors, compensation cost increases ranged from 4.2 percent for manufacturing to 5.9 percent for leisure and hospitality. (See table 5.)

Compensation costs for state and local government workers increased 4.9 percent for the 12-month period ending in March 2023, compared with an increase of 3.2 percent in March 2022. Wages and salaries increased 4.7 percent for the 12-month period ending in March 2023 and 3.1 percent a year ago. Benefit costs increased 5.0 percent for the 12-month period ending in March 2023. The prior year increase was 3.5 percent. (See tables A, 7, 11, and 12.)

Updated Employment Weights

Beginning with the December 2022 news release, the Employment Cost Index introduced new employment weights based on the 2018 Standard Occupational Classification (SOC) system, see www.bls.gov/eci/notices/2022/eci-2021-fixed-weights-and-2018-soc-update.htm.