NEWS RELEASE
BUREAU OF LABOR STATISTICS
U.S. DEPARTMENT OF LABOR
TRANSMISSION OF MATERIAL IN THIS RELEASE IS EMBARGOED UNTIL USDL-17-0138
8:30 a.m. (EST) Tuesday, January 31, 2017
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EMPLOYMENT COST INDEX – DECEMBER 2016
Compensation costs for civilian workers increased 0.5 percent, seasonally adjusted, for the 3-month
period ending in December 2016, the U.S. Bureau of Labor Statistics reported today. Wages and
salaries (which make up about 70 percent of compensation costs) increased 0.5 percent, and benefits
(which make up the remaining 30 percent of compensation) increased 0.4 percent. (See chart 1 and
tables A, 1, 2, and 3.)
Civilian Workers
Compensation costs for civilian workers increased 2.2 percent for the 12-month period ending in
December 2016. In December 2015, compensation costs increased 2.0 percent. Wages and salaries
increased 2.3 percent for the current 12-month period, and increased 2.1 percent for the 12-month
period ending in December 2015. Benefit costs increased 2.1 percent for the 12-month period ending
in December 2016. In December 2015, the increase was 1.7 percent. (See chart 2 and tables A, 4, 8,
and 12.)
Private Industry Workers
Compensation costs for private industry workers increased 2.2 percent over the year. In December
2015, the increase was 1.9 percent. Wages and salaries increased 2.3 percent for the current 12-
month period. In December 2015, the increase was 2.1 percent. The cost of benefits rose 1.8 percent
for the 12-month period ending in December 2016, higher than the 1.3 percent increase in December
2015. (See charts 3 and 4 and tables A, 5, 9, and 12.)
Employer costs for health benefits increased 2.7 percent for the 12-month period ending in December
2016. (For further information, see www.bls.gov/web/eci/echealth.pdf.)
Among occupational groups, compensation cost increases for private industry workers for the 12-month
period ending in December 2016 ranged from 1.7 percent for management, professional, and related
occupations to 3.2 percent for service occupations. (See table 5.)
Among industry supersectors, compensation cost increases for private industry workers for the
current 12-month period ranged from 1.2 percent for professional and business services to 3.3
percent for leisure and hospitality. (See table 5.)
State and Local Government Workers
Compensation costs for state and local government workers increased 2.4 percent for the 12-month
period ending in December 2016. In December 2015, the increase was 2.5 percent. Wages and salaries
increased 2.1 percent for the 12-month period ending in December 2016, higher than the December 2015
increase of 1.8 percent. Benefit costs increased 3.1 percent for the 12-month period ending in
December 2016. The prior year’s increase was 3.5 percent. (See chart 5 and tables A, 7, 11, and 12.)
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Table A. Major series of the Employment Cost Index
(Percent change)
Category 3-month, 12-month,
seasonally adjusted not seasonally adjusted
Sept. Dec. Dec. Mar. June Sept. Dec.
2016 2016 2015 2016 2016 2016 2016
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CIVILIAN WORKERS[1]
Compensation[2] 0.6 0.5 2.0 1.9 2.3 2.3 2.2
Wages and salaries 0.5 0.5 2.1 2.0 2.5 2.4 2.3
Benefits 0.7 0.4 1.7 1.7 2.0 2.3 2.1
PRIVATE INDUSTRY
Compensation[2] 0.5 0.5 1.9 1.8 2.4 2.3 2.2
Wages and salaries 0.5 0.5 2.1 2.0 2.6 2.4 2.3
Benefits 0.5 0.4 1.3 1.2 1.7 1.8 1.8
STATE AND LOCAL
GOVERNMENT
Compensation[2] 0.9 0.5 2.5 2.4 2.3 2.6 2.4
Wages and salaries 0.7 0.5 1.8 1.8 1.7 2.0 2.1
Benefits 1.2 0.7 3.5 3.5 3.4 3.7 3.1
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[1] Includes private industry and State and local government.
[2] Includes wages and salaries and benefits.
The Employment Cost Index for March 2017 is scheduled for release on
Friday, April 28, 2017, at 8:30 a.m. (EDT).
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