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http://www.bls.gov/ect FRIDAY, OCTOBER 31, 2008
EMPLOYMENT COST INDEX-SEPTEMBER 2008
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).
Table A. 3-month percent changes in the Employment Cost Index, seasonally adjusted
Compensation Dec. Mar. June Sep. Dec. Mar. June Sep.
component 2006 2007 2007 2007 2007 2008 2008 2008
Civilian workers
Compensation costs 0.8 0.8 0.9 0.8 0.8 0.7 0.7 0.7
Wages and salaries 0.8 1.0 0.8 0.8 0.8 0.8 0.7 0.7
Benefit costs 1.0 0.2 1.3 0.8 0.8 0.6 0.6 0.6
Private industry
Compensation costs 0.8 0.7 0.8 0.8 0.9 0.8 0.6 0.6
Wages and salaries 0.8 1.0 0.8 0.8 0.8 0.8 0.7 0.6
Benefit costs 0.9 -0.3 1.1 0.8 0.8 0.6 0.5 0.6
State and local government
Compensation costs 1.1 1.2 1.0 0.9 0.9 0.6 0.9 0.9
Wages and salaries 0.8 0.9 0.9 0.9 0.8 0.7 0.9 1.0
Benefit costs 1.5 1.7 1.6 0.9 1.2 0.3 1.1 0.7
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.)
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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.
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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.)
Table B. 12-month percent changes in the Employment Cost Index, not seasonally adjusted
Compensation component Sep. Sep. Sep. Sep. Sep. Sep.
2003 2004 2005 2006 2007 2008
Civilian workers
Compensation costs 3.9 3.8 3.0 3.3 3.3 2.9
Wages and salaries 2.9 2.5 2.3 3.2 3.3 3.1
Benefit costs 6.3 6.6 5.0 3.3 3.2 2.6
Private industry
Compensation costs 3.9 3.8 2.9 3.0 3.1 2.8
Wages and salaries 3.0 2.6 2.3 3.0 3.4 2.9
Benefit costs 6.3 6.7 4.5 2.8 2.4 2.4
State and local government government
Compensation costs 3.7 3.4 3.9 4.1 4.3 3.4
Wages and salaries 2.4 2.1 2.6 3.7 3.5 3.5
Benefit costs 6.7 6.5 6.5 5.2 6.0 3.3
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.)
Table C. 12-month percent changes in the Employment Cost Index, private industry workers, by bargaining status, not seasonally adjusted
Compensation component Sep. Sep. Sep. Sep. Sep. Sep.
2003 2004 2005 2006 2007 2008
Union workers
Compensation costs 4.7 5.6 3.0 2.8 2.0 2.9
Wages and salaries 2.7 2.9 2.5 2.2 2.7 2.9
Benefit costs 8.3 10.1 4.0 3.6 0.9 2.8
Nonunion workers
Compensation costs 3.9 3.4 2.9 3.1 3.2 2.8
Wages and salaries 3.2 2.5 2.3 3.2 3.4 3.0
Benefit costs 5.9 5.9 4.6 2.7 2.7 2.4
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.)
Table D. 12-month percent changes in wages and salaries, Employment Cost Index, constant
dollars, not seasonally adjusted
Sector, occupational group and industry Sep. Sep. Sep. Sep. Sep. Sep.
2003 2004 2005 2006 2007 2008
Civilian workers 0.6 0.0 -2.3 1.1 0.6 -1.8
Occupation
Management, professional, and related 0.8 -0.1 -2.2 1.5 0.7 -1.6
Sales and office 0.8 0.4 -2.4 1.0 0.2 -2.3
Natural resources, construction, and maintenance 0.3 -0.2 -2.1 1.3 0.6 -1.5
Production, transportation, and material moving 0.2 0.0 -2.5 0.2 0.0 -1.9
Service 0.0 -0.6 -2.1 0.6 1.4 -1.7
Industry
Goods producing 0.6 0.3 -2.3 0.7 0.3 -1.8
Service providing 0.6 -0.1 -2.3 1.2 0.6 -1.8
Private industry 0.8 0.0 -2.3 1.0 0.5 -1.8
State and local government 0.1 -0.5 -2.0 1.6 0.7 -1.4
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NOTE:
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.
Information in this release will be made available to sensory impaired individuals upon request.
Voice phone: (202) 691-5200; Federal Relay Service Number: 1-800-877-8339.
_______________________________________________________________________________________________________________
Bureau of Labor Statistics
