Employment Cost Index news release text


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     http://www.bls.gov/ect                           THURSDAY, APRIL 30, 2009

                           EMPLOYMENT COST INDEX-MARCH 2009

     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).


Table A.  3-month percent changes in the Employment Cost Index, seasonally adjusted
Compensation                     June   Sep.   Dec.   Mar.   June   Sep.   Dec.   Mar.
component                        2007   2007   2007   2008   2008   2008   2008   2009
Civilian workers
    Compensation costs           0.9    0.8    0.8    0.7    0.7    0.6    0.6    0.3
      Wages and salaries         0.7    0.9    0.8    0.7    0.7    0.7    0.5    0.3
      Benefit costs              1.2    0.8    0.8    0.6    0.6    0.6    0.5    0.5
  Private industry
    Compensation costs           0.8    0.8    0.9    0.7    0.7    0.6    0.5    0.2
      Wages and salaries         0.7    0.9    0.8    0.8    0.7    0.6    0.5    0.2
      Benefit costs              1.1    0.7    1.0    0.6    0.4    0.6    0.4    0.2
  State and local government
    Compensation costs           1.0    0.9    0.9    0.7    0.8    0.8    0.6    0.8
      Wages and salaries         0.8    1.0    0.8    0.8    0.8    0.9    0.5    0.7
      Benefit costs              1.5    0.9    1.1    0.5    0.9    0.6    0.7    1.1


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.)


Table B.  12-month percent changes in the Employment Cost Index, not seasonally adjusted
Compensation                                       Mar.   Mar.   Mar.   Mar.   Mar.   Mar.
component                                          2004   2005   2006   2007   2008   2009
Civilian workers
Compensation costs                                 3.7    3.6    2.8    3.5    3.3    2.1
  Wages and salaries                               2.6    2.5    2.7    3.6    3.2    2.2
  Benefit costs                                    6.7    5.9    3.4    3.1    3.5    2.0
        Private industry
Compensation costs                                 3.8    3.5    2.6    3.2    3.2    1.9
  Wages and salaries                               2.6    2.7    2.4    3.6    3.2    2.0
  Benefit costs                                    6.8    5.5    3.0    2.2    3.2    1.6
        State and local government government
Compensation costs                                 3.4    3.6    3.7    4.6    3.6    3.1
  Wages and salaries                               2.1    2.3    2.8    3.8    3.5    3.0
  Benefit costs                                    6.4    6.7    5.4    6.3    4.1    3.4


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.)


Table C.  12-month percent changes in the Employment Cost Index, private industry workers, by bargaining status,
not seasonally adjusted
Compensation                                    Mar.   Mar.   Mar.   Mar.   Mar.   Mar.
component                                       2004   2005   2006   2007   2008   2009
            Union workers
Compensation costs                               5.6    3.6    2.7    2.2    3.1    3.0
  Wages and salaries                             2.8    2.4    2.5    2.5    2.6    3.1
  Benefit costs                                 10.6    5.6    2.9    1.6    4.1    2.7
        Nonunion workers
Compensation costs                               3.5    3.5    2.6    3.3    3.2    1.8
  Wages and salaries                             2.7    2.6    2.5    3.7    3.3    1.9
  Benefit costs                                  5.9    5.6    2.9    2.4    3.0    1.3


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.)


Table D.  12-month percent changes in wages and salaries, Employment Cost Index, constant
dollars, not seasonally adjusted
Ownership sector, occupational                                 Mar.   Mar.   Mar.   Mar.    Mar.   Mar.
group, and industry                                            2004   2005   2006   2007    2008   2009
Civilian workers                                               0.8    -0.6   -0.7    0.7    -0.7   2.6
Occupation
    Management, professional, and related                      0.9    -0.5   -0.8    1.0    -0.6   3.0
    Sales and office                                           1.1    -0.3   -0.7    0.6    -1.1   1.6
    Natural resources, construction, and maintenance           0.9    -1.0   -0.4    0.7    -0.3   2.9
    Production, transportation, and material moving            0.4    -0.7   -1.0   -0.2    -1.1   2.6
    Service                                                    0.4    -0.9   -1.0    1.2    -0.6   3.3
Industry
    Goods-producing                                            0.7    -0.7   -0.5    0.3    -0.8   2.4
    Service-providing                                          0.8    -0.5   -0.8    0.8    -0.8   2.7
  Private industry                                             0.9    -0.5   -0.9    0.7    -0.8   2.5
  State and local government                                   0.4    -0.8   -0.6    1.0    -0.5   3.3



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                                                     NOTE:

     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.

     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.
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_____________________________________________________________________________________________________________________________

     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/.

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Last Modified Date: April 30, 2009