Employment Cost Index-September 2004

Total compensation costs for civilian workers increased 0.9 percent from June to September 2004, seasonally adjusted, the same as from March to June 2004, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. Wage and salary costs increased 0.7 percent, while benefit costs rose 1.1 percent, the smallest increase in benefit costs in 2004. The Employment Cost Index (ECI), a component of the National Compensation Survey, measures quarterly changes in compensation costs, which include wages, salaries, and employer costs for employee benefits for nonfarm private and State and local government workers.

Rises in benefit costs accounted for a little less than 40 percent of the increase in compensation costs for civilian workers from June to September 2004. Among State and local government workers, benefit costs contributed 55 percent of compensation gains during the June-to-September period, with defined benefit retirement costs accounting for one-fourth of the gain in compensation costs. Among private industry workers, benefit costs were about three-tenths of compensation gains during the quarter, comparable to the percent of total compensation costs contributed by benefits.

Quarterly changes, seasonally adjusted

Benefit costs increases slowed to 1.1 percent for civilian workers (nonfarm private industry and State and local government) in the September 2004 quarter, following a gain of 1.8 percent in the June 2004 quarter. Private sector benefit costs rose 1.0 percent for the September quarter, moderating from the 1.7 percent gain in the previous quarter. Benefit costs for State and local governments increased 1.4 percent in the September quarter, following an increase of 1.9 percent in June 2004.

While gains in wages and salaries for civilian workers increased 0.7 percent during the September quarter, following a gain of 0.6 percent in June, the gains for private industry and State and local government workers varied. Wages and salaries for private industry workers rose 0.9 percent for the September quarter, following a more modest 0.6 percent gain during the prior period. Wage and salary gains in wholesale trade led the increase, while the retail trade industry and service occupations had smaller gains. The change in State and local government wages and salaries was 0.1 percent during the June-to-September period.

Over-the-year changes, not seasonally adjusted

This release has an edited for length. The original is availble from the Bureau of Labor Statistics.

The components of compensation continued to show differences in the rate of change. While increases in wages and salaries continued to be moderate, benefit costs continued to rise more rapidly during the year ended September 2004. For civilian workers, increases in wages and salaries slowed to 2.4 percent in the year ended September 2004, compared with a gain of 2.9 percent in September 2003. Benefit costs increased 6.8 percent for the period ended September 2004, compared with the increase of 6.5 percent for the year ended September 2003.

Nonfarm private industry

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