Friday, July 30, 2010

EMPLOYMENT COST INDEX - JUNE 2010


Compensation costs for civilian workers increased 0.5 percent, seasonally adjusted, for the 3-month period ending June 2010, the U.S. Bureau of Labor Statistics reported today.

Wages and salaries (which makeup about 70 percent of compensation costs) increased 0.4 percent while benefits (which make up the remaining30 percent of compensation) increased 0.6 percent.


Civilian Workers

Compensation costs for civilian workers increased 1.8 percent for the 12-month period ending June 2010. This was the same as the 12-month period ending in June 2009. Wages and salaries increased 1.6 percent for the current 12-month period, compared to a 1.8 percent increase for the 12-month period ending in June 2009.

Benefit costs rose 2.5 percent, up from a 1.8 percent increase for the 12-month period ending June 2009.

Private Industry Workers

Compensation costs for private industry workers increased 1.9 percent for the 12-month period ending June 2010, higher than the 1.5 percent increase for the 12-month period ending June 2009. The wage and salary series increased 1.6 percent for the current 12-month period, the same as for the period ending June 2009. The cost of benefits increased 2.5 percent for the 12-month period ending June 2010, higher than the June 2009 increase of 1.3 percent. Employer costs for health benefits rose 5.0 percent for the 12-month period ending June 2010. In June 2009, the 12-month percent change was 4.4 percent.

Among occupational groups, compensation cost increases for private industry workers for the 12-month period ending June 2010 ranged from 1.5 percent for management, professional, and related occupations to 2.3 percent for sales and office occupations. The sales and office increase was primarily due to a 2.9 percent increase among sales and related occupations, which rebounded from a 1.6 percent decrease a year earlier. The other component of sales and office occupations--office and administrative support--increased 2.0 percent.

Among industry supersectors, compensation cost increases for private industry workers for the current 12-month period ranged from 1.0 percent for construction to 2.6 percent for trade, transportation, and utilities.

State and Local Government Workers

Compensation costs for State and local government workers increased 1.8 percent for the 12-month period ending June 2010. Since this series began in June 1982, published values ranged from 2.0 percent in March 2010 to 9.6 percent in June 1982. Wages and salaries increased 1.4 percent. This series also began in June 1982. Prior published values ranged from 1.8 in March 2010 to 8.5 percent in June 1982. Benefit costs increased 2.6 percent. Prior published values for this series, which began in June 1990, ranged from 1.2 percent in December 1997 to 8.3 percent in June 1990.

www.bls.gov

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Original content Bob DeMarco, All American Investor