Southwest Information Office

FOR FURTHER INFORMATION:                                                                      FOR RELEASE:
Cheryl Abbot, Regional Economist                                                              August 12, 2009    
(972) 850-4800                                                  
http://www.bls.gov/ro6/  
			

                   CHANGING COMPENSATION COSTS IN THE HOUSTON METROPOLITAN AREA: JUNE 2009

     Total compensation costs for private industry workers increased 1.8 percent in the Houston-Baytown-Huntsville, 
Texas metropolitan area for the year ended in June 2009, according to the Bureau of Labor Statistics of the U.S. 
Department of Labor.  Regional Commissioner Stanley W. Suchman noted that one year ago, Houston experienced an 
annual gain of 2.4 percent in total compensation costs.  Locally, wages and salaries, the largest component of total 
compensation costs, advanced at a 2.1-percent pace for the 12-month period ended in June 2009.  Nationwide, total 
compensation costs rose 1.5 percent and wages and salaries, 1.6 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 Houston area, not seasonally adjusted,
June 2007 to June 2009

     		


     Houston is 1 of 14 metropolitan areas in the United States, and 1 of 5 areas in the South region of the country, 
for which local compensation cost data are available.  Among these 14 largest areas, Boston experienced the highest 
percent change in both total compensation costs and wages and salaries from June 2008 to June 2009.  Over-the-year 
growth in total compensation costs ranged from 3.5 percent in Boston to 0.4 percent in both Minneapolis and Phoenix 
in June 2009; for wages and salaries, annual advances ranged from 3.6 percent in Boston to 0.2 percent in Chicago.  
(See chart B.)

     The annual increase in total compensation costs in Houston in June 2009, at 1.8 percent, compared to gains ranging 
from 2.1 to 1.2 percent in the four other metropolitan areas in the South (Atlanta, Dallas, Miami and Washington).  
Houston's 2.1-percent gain in wages and salaries over this 12-month period compared to advances ranging from 3.0 to 
1.3 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, including wages, salaries, and employer costs for employee benefits.  In addition to the 14 
local 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, June 2008 to June 2009


	   


     In 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, 
Southwest Regional Office by calling 972-850-4800.  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/ro6/.  The ECI for September 2009 will be released on Friday, October 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 (www.bls.gov/news.release/eci.t06.htm) and table 10   |
| (www.bls.gov/news.release/eci.t10.htm) of the "Employment Cost Index" news release issued by the BLS National  |
|  Office.  Historical estimates can be retrieved at www.bls.gov/ncs/ect/regionaleci.htm.                        |
|________________________________________________________________________________________________________________|



                                                 Technical Note

     The 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 areas

     Based 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 areas were computed for the periods since 
December 2006.

The metropolitan area definitions of the 14 published localities are listed below.

Atlanta-Sandy Springs-Gainesville, Ga.-Ala. Combined Statistical Area (CSA) includes Barrow, Bartow, Butts,
   Carroll, Cherokee, Clayton, Cobb, Coweta, Dawson, DeKalb, Douglas, Fayette, Forsyth, Fulton, Gwinnett,
   Hall, Haralson, Heard, Henry, Jasper, Lamar, Meriwether, Newton, Paulding, Pickens, Pike, Polk, Rockdale,
   Spalding, Troup, Upson, and Walton Counties in Georgia; and Chambers County in Alabama.

Boston-Worcester-Manchester, Mass.-N.H. CSA includes Essex, Middlesex, Norfolk, Plymouth, Suffolk, and
   Worcester Counties in Massachusetts and Belknap, Hillsborough, Merrimack, Rockingham, and Strafford Counties
   in New Hampshire.

Chicago-Naperville-Michigan City, Ill.-Ind.-Wis. CSA includes Cook, DeKalb, DuPage, Grundy, Kane, Kankakee,
   Kendall, Lake, McHenry, and Will Counties in Illinois; Jasper, Lake, LaPorte, Newton, and Porter Counties in
   Indiana; and Kenosha County in Wisconsin.

Dallas-Fort Worth, Texas CSA includes Collin, Cooke, Dallas, Delta, Denton, Ellis, Henderson, Hood, Hunt,
   Johnson, Kaufman, Palo Pinto, Parker, Rockwall, Somervell, Tarrant, and Wise Counties in Texas.

Detroit-Warren-Flint, Mich. CSA includes Genesee, Lapeer, Livingston, Macomb, Monroe, Oakland, St. Clair,
   Washtenaw, and Wayne Counties in Michigan.

Houston-Baytown-Huntsville, Texas CSA includes Austin, Brazoria, Chambers, Fort Bend, Galveston, Harris,
   Liberty, Matagorda, Montgomery, San Jacinto, Walker, and Waller Counties in Texas.

Los Angeles-Long Beach-Riverside, Calif. CSA includes Los Angeles, Orange, Riverside, San Bernardino, and
   Ventura Counties in California.

Miami-Fort Lauderdale-Pompano Beach, Fla. Metropolitan Statistical Area (MSA) includes Broward, Miami-Dade, and
   Palm Beach Counties in Florida.

Minneapolis-St. Paul-St. Cloud, Minn.-Wis. CSA includes Anoka, Benton, Carver, Chisago, Dakota, Goodhue,
   Hennepin, Isanti, McLeod, Ramsey, Rice, Scott, Sherburne, Stearns, Washington, and Wright Counties in
   Minnesota; and Pierce and St. Croix Counties in Wisconsin.

New York-Newark-Bridgeport, N.Y.-N.J.-Conn.-Pa. CSA includes Bronx, Dutchess, Kings, Nassau, New York, Orange,
   Putnam, Queens, Richmond, Rockland, Suffolk, Ulster, and Westchester Counties in New York; Bergen, Essex,
   Hudson, Hunterdon, Mercer, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, Sussex, and Union Counties
   in New Jersey; Fairfield, Litchfield, and New Haven Counties in Connecticut; and Pike County in
   Pennsylvania.

Philadelphia-Camden-Vineland, Pa.-N.J.-Del.-Md. CSA includes Bucks, Chester, Delaware, Montgomery, and
   Philadelphia Counties in Pennsylvania; Burlington, Camden, Cumberland, Gloucester, and Salem Counties in New
   Jersey; New Castle County in Delaware; and Cecil County in Maryland.

Phoenix-Mesa-Scottsdale, Ariz. MSA includes Maricopa and Pinal Counties in Arizona.

San Jose-San Francisco-Oakland, Calif. CSA includes Alameda, Contra Costa, Marin, Napa, San Benito, San
   Francisco, San Mateo, Santa Clara, Santa Cruz, Sonoma, and Solano Counties in California.

Washington-Baltimore-Northern Virginia, D.C.-Md.-Va.-W.Va. CSA includes the District of Columbia; Baltimore
   City and Anne Arundel, Baltimore, Calvert, Carroll, Charles, Frederick, Harford, Howard, Montgomery, Prince
   George’s, Queen Anne’s, and St. Mary’s Counties in Maryland; Alexandria, Fairfax, Falls Church,
   Fredericksburg, Manassas, Manassas Park, and Winchester Cities and Arlington, Clarke, Fairfax, Fauquier,
   Frederick, Loudoun, Prince William, Spotsylvania, Stafford, and Warren Counties in Virginia; and Hampshire
   and Jefferson Counties in West Virginia.

Definitions of the four geographic regions of the country are noted below.

Northeast:  Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island,
   and Vermont. 

South:  Alabama, Arkansas, Delaware, the District of Columbia, Florida, Georgia, Kentucky, Louisiana, Maryland,
   Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, and West Virginia. 

Midwest:  Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South
   Dakota, and Wisconsin. 

West:  Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah,
   Washington, and Wyoming. 

Last Modified Date: August 12, 2009