Nonfarm private industry
For the year ended December 2004, compensation costs in private industry increased 4.7 percent for goods-producing industries, compared with an advance of 4.0 percent for the year ended December 2003. Compensation costs for manufacturing advanced 5.0 percent in December 2004, after increasing 4.1 percent in December 2003. Compensation costs for construction rose 2.4 percent in December 2004, compared with a 3.4 percent rise in December 2003.The over-the-year increase in compensation for service-producing industries was 3.3 percent, compared with a 4.0 percent gain for the year ended December 2003. Among service-producing industries, the 12-month increase for transportation and public utilities was 3.9 percent for the year ended in December 2004, led by a 5.0 percent increase in the electric, gas, and sanitary services industry. Compensation costs rose modestly in retail trade and wholesale trade, increasing 2.3 percent and 2.7 percent, respectively, in December 2004.
Over-the-year compensation cost increases were 4.4 percent for blue-collar occupations, 3.5 percent for white-collar occupations, and 2.9 percent for service occupations for the year ended December 2004. Among white-collar occupational groups, compensation cost increases ranged from 2.4 percent for executive, administrative, and managerial employees to 4.5 percent for professional specialty and technical workers. Among blue-collar occupational groups, compensation cost increases ranged from 3.4 percent for transportation and material moving workers and handlers, equipment cleaners, helpers, and laborers to 5.7 percent for machine operators, assemblers, and inspectors.
Gains in compensation costs for union workers continued to outpace those for nonunion workers. Compensation costs for union workers advanced 5.6 percent over the year ended December 2004, significantly higher than the 3.4 percent increase for nonunion workers. Among blue-collar workers, compensation costs advanced 5.7 percent for union workers, greater than the gain of 3.7 percent for nonunion workers. In manufacturing industries, compensation costs for union workers advanced sharply, rising 7.6 percent, significantly higher than the 4.2 percent increase for nonunion workers for the year ended December 2004.
Wages and salaries for union workers rose 2.8 percent for the 12 months ended in December 2004, compared with an over-the-year increase of 2.4 percent for nonunion workers. Benefit costs for union workers continued to rise sharply, 10.3 percent, compared with an increase of 6.2 percent for nonunion workers in December 2004.
Among the four geographic regions, increases in compensation costs ranged from 3.1 percent in the Midwest to 4.1 percent in the South for the year ended December 2004. Compensation costs rose 3.8 percent in the Northeast and 3.9 percent in the West. In the Midwest, gains in wages and salaries slowed to 1.6 percent for the year ended December 2004, significantly less than the 3.9 percent gain for the year ended December 2003. Among the remaining regions, wages and salaries rose 2.5 percent in the Northeast, 2.6 percent in the West, and 2.8 percent in the South for the year ended December 2004.
State and local government
Wages and salaries for State and local government workers edged up 2.1 percent in the year ended December 2004, the same as the gain for December 2003. Benefit costs rose 6.7 percent for the year ended December 2004, greater than the gain of 6.1 percent for the year ended December 2003.For the year ended December 2004, compensation costs increased 3.0 percent for educational services, almost identical to the 2.9 percent increase for the year ended December 2003. Within educational services, compensation increases were 3.4 percent for elementary and secondary schools and 1.9 percent for colleges and universities. Among occupational groups, compensation costs of service workers rose 4.3 percent for the year ended December 2004, compared with gains of 3.5 percent for blue-collar workers and 3.3 percent for white-collar workers.
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