Web site : www.bls.gov/ro3/ | PLS - 4501 For Release: Tuesday, February 24, 2009 |
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Information: | Gerald Perrins (215) 597-3282 |
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Media Contact: | Sheila Watkins (215) 861-5600 |
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CHANGING COMPENSATION COSTS IN THE WASHINGTON-BALTIMORE METROPOLITAN AREA: DECEMBER 2008 (PDF)Total compensation costs for private industry workers increased 3.1 percent in the Washington-Baltimore-Northern Virginia, D.C.-Md.-Va.-W.Va. metropolitan area for the year ended in December 2008, according to the Bureau of Labor Statistics of the U.S. Department of Labor. Sheila Watkins, the Bureau’s regional commissioner, noted that one year ago, Washington-Baltimore experienced an annual gain of 2.7 percent in total compensation costs. Locally, wages and salaries, the largest component of total compensation costs, advanced at a 3.0-percent pace for the 12-month period ended December 2008. Nationwide, total compensation costs rose 2.4 percent and wages and salaries, 2.6 percent over the same period. (See chart A and table 1.) Chart A. Twelve-month percent changes in the Employment Cost Index for total compensation and for wages and salaries, private industry workers, United States and the Washington-Baltimore area, not seasonally adjusted, December 2006 to December 2008Washington-Baltimore is 1 of 14 metropolitan areas in the United States, and 1 of 5 areas in the South region of the country, for which locality compensation cost data are now available. Among these 14 largest areas, Washington-Baltimore registered the fourth-highest percent change in total compensation costs, and ranked sixth (along with Houston) in wage and salary growth from December 2007 to December 2008. Over-the-year growth rates in the cost of total compensation ranged from 4.0 percent in Boston and Philadelphia to 1.7 percent in Detroit in December 2008; for wages and salaries, annual advances ranged from 4.5 percent in Boston to 1.8 percent in New York. (See chart B.) The annual increase in total compensation costs in Washington-Baltimore in December 2008, at 3.1 percent, compared to gains ranging from 2.6 to 2.1 percent in the four other metropolitan areas in the South (Atlanta, Dallas, Houston, and Miami). Washington-Baltimore’s 3.0-percent gain in wages and salaries over this 12-month period compared to advances ranging from 4.0 to 2.1 percent in the four other Southern localities. (See table 2.) Locality compensation costs are part of the national Employment Cost Index (ECI) which measures quarterly changes in total compensation costs, which include wages, salaries and employer costs for employee benefits. In addition to the 14 locality estimates provided in this release, ECI data for the nation, 4 geographical regions, and 9 geographical divisions are available. (Geographical definitions for the metropolitan areas mentioned in this release are included in the Technical Note.) Chart B. Percent change in the Employment Cost Index for total compensation and for wages and salaries, private industry workers, United States and localities, not seasonally adjusted, December 2007 to December 2008In addition to the geographic data, a comprehensive national report is available that provides data by industry, occupational group, and union status, as well as for both private, and state and local government employees. The report on the Employment Cost Index and further technical information may be obtained from the U.S. Bureau of Labor Statistics, Mid Atlantic Regional Office by calling 215-579-3282. The report is also available on the Internet at www.bls.gov/news.release/eci.toc.htm. Current and historical information from other Bureau programs may be accessed via our regional homepage at www.bls.gov/ro3/. The ECI for the nation, regions, and divisions for March 2009 will be released on Thursday, April 30, 2009 at 8:30 a.m. (ET). Information from the Employment Cost Index program is available to sensory impaired individuals upon request. Voice phone: 202-691-5200, Federal Relay Services: 1-800-877-8339. The "Employment Cost Index for the Regions" news releases have been discontinued. However, the estimates that appeared in those releases are available in table 6 and table 10 of the "Employment Cost Index" news release issued by the BLS National Office. Historical estimates for these series can be found at www.bls.gov/ncs/ect/regionaleci.htm. Technical NoteThe Employment Cost Index (ECI) is a measure of the change in the cost of labor, free from the influence of employment shifts among occupations and industries. The total compensation series includes changes in wages and salaries and employer costs for employee benefits. Wages and salaries are defined as straight-time average hourly earnings or, for workers not paid on an hourly basis, straight-time earnings divided by the corresponding hours. Straight-time wage and salary rates are total earnings before payroll deductions, excluding premium pay for overtime, work on weekends and holidays, and shift differentials. Production bonuses, incentive earnings, commission payments, and cost-of-living adjustments are included in straight-time earnings, whereas nonproduction bonuses (such as Christmas or year-end bonuses) are excluded. Also excluded are such items as payments-in-kind, free room and board, and tips. Selection of areasBased on available resources and the existing ECI sample, it was determined that estimates would be published for 14 metropolitan areas. Since the ECI sample sizes by area are directly related to area employment, the areas with the largest private industry employment as of the year 2000 were selected. For each of these areas, 12-month percent changes and associated standard errors were computed for the periods since December 2006. The metropolitan area definitions of the 14 published localities are listed below.
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Area | Total compensation 12-month percent changes for period ended: | Wages and salaries 12-month percent changes for period ended: | ||||||
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March | June | September | December | March | June | September | December | |
United States | ||||||||
2006 |
2.6 | 2.8 | 3.0 | 3.2 | 2.4 | 2.8 | 3.0 | 3.2 |
2007 |
3.2 | 3.1 | 3.1 | 3.0 | 3.6 | 3.3 | 3.4 | 3.3 |
2008 |
3.2 | 3.0 | 2.8 | 2.4 | 3.2 | 3.1 | 2.9 | 2.6 |
South | ||||||||
2006 |
2.1 | 2.3 | 3.1 | 3.5 | 2.1 | 2.3 | 3.2 | 3.6 |
2007 |
3.3 | 3.6 | 3.2 | 3.1 | 3.6 | 3.9 | 3.5 | 3.3 |
2008 |
3.4 | 3.0 | 2.8 | 2.4 | 3.3 | 3.3 | 3.1 | 2.8 |
Washington-Baltimore-Northern Virginia | ||||||||
2006 |
3.8 | 3.9 | ||||||
2007 |
3.4 | 3.6 | 3.2 | 2.7 | 3.4 | 3.8 | 3.5 | 2.8 |
2008 |
3.1 | 2.7 | 3.0 | 3.1 | 3.1 | 2.7 | 2.8 | 3.0 |
Area | Total compensation | Wages and salaries | ||||
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12-month percent changes for period ended― | 12-month percent changes for period ended― | |||||
December 2007 | September 2008 | December 2008 | December 2007 | September 2008 | December 2008 | |
United States |
3.0 | 2.8 | 2.4 | 3.3 | 2.9 | 2.6 |
Northeast |
3.4 | 2.4 | 2.5 | 3.4 | 2.5 | 2.8 |
Boston-Worcester-Manchester |
3.2 | 2.4 | 4.0 | 3.6 | 2.5 | 4.5 |
New York-Newark-Bridgeport |
3.5 | 2.4 | 1.9 | 3.5 | 2.3 | 1.8 |
Philadelphia-Camden-Vineland |
3.0 | 4.6 | 4.0 | 3.5 | 4.7 | 4.1 |
South |
3.1 | 2.8 | 2.4 | 3.3 | 3.1 | 2.8 |
Atlanta-Sandy Springs-Gainesville |
3.3 | 2.1 | 2.1 | 2.7 | 2.0 | 2.1 |
Dallas-Fort Worth |
2.6 | 2.6 | 2.6 | 2.4 | 2.9 | 3.2 |
Houston-Baytown-Huntsville |
2.6 | 2.4 | 2.5 | 3.2 | 2.5 | 3.0 |
Miami-Fort Lauderdale-Pompano Beach |
3.8 | 2.8 | 2.1 | 3.1 | 4.4 | 4.0 |
Washington-Baltimore-Northern Virginia |
2.7 | 3.0 | 3.1 | 2.8 | 2.8 | 3.0 |
Midwest |
2.4 | 2.7 | 2.2 | 2.9 | 2.8 | 2.3 |
Chicago-Naperville-Michigan City |
2.5 | 3.3 | 2.5 | 3.6 | 3.1 | 2.1 |
Detroit-Warren-Flint |
0.9 | 1.8 | 1.7 | 1.0 | 1.9 | 1.9 |
Minneapolis-St. Paul-St. Cloud |
2.3 | 2.8 | 2.5 | 2.1 | 2.9 | 2.7 |
West |
3.4 | 3.4 | 2.7 | 3.7 | 3.5 | 2.9 |
Los Angeles-Long Beach-Riverside |
3.6 | 2.5 | 2.3 | 3.7 | 2.1 | 2.4 |
Phoenix-Mesa-Scottsdale |
3.6 | 4.5 | 3.5 | 3.6 | 4.4 | 3.5 |
San Jose-San Francisco-Oakland |
3.8 | 3.5 | 2.7 | 4.5 | 3.2 | 2.3 |
Last Modified Date: February 24, 2009