Employment Cost Index Summary

NEWS RELEASE
BUREAU OF LABOR STATISTICS
U.S. DEPARTMENT OF LABOR    

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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
_____________________________________________________________________________________________________
   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 
_____________________________________________________________________________________________________

  [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).

Information in this release will be made available to sensory impaired individuals upon request—
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Last Modified Date: January 31, 2017