Spurred by increased healthcare costs, the employment cost index rose again the first quarter of 2010, the Bureau of Labor Statistics reported today:
Compensation costs for civilian workers increased 0.6 percent, seasonally adjusted, for the 3-month period ending March 2010, the U.S. Bureau of Labor Statistics reported today. Wages and salaries (which make up about 70 percent of compensation costs) increased 0.4 percent while benefits (which make up the remaining 30 percent of compensation)–increased 1.1 percent.
Civilian Worker Data
Compensation costs for civilian workers increased 1.7 percent for the 12-month period ending March 2010. This was smaller than the 2.1 percent increase for the 12-month period ending in March 2009. Wages and salaries increased 1.5 percent for the current 12-month period, slowing from a 2.2 percent increase for the 12-month
period ending in March 2009. Benefit costs rose 2.2 percent, compared with a 2.0 percent increase for the 12-month period ending March 2009.Private Industry Worker Data
Compensation costs for private industry workers increased 1.6 percent, compared to 1.9 percent for the 12-month period ending March 2009. The wage and salary series increased 1.5 percent for the current 12-month period, compared to 2.0 percent for the period ending March 2009. The cost of benefits increased 2.0 percent for
the 12-month period ending March 2010 primarily due to increases in the cost of health benefits and defined benefit retirement plans. In March 2009, benefits increased 1.6 percent. Employer costs for health benefits increased 4.5 percent for the 12-month period ending March 2010. In March 2009, the 12-month percent change was 4.6 percent.Among occupational groups, compensation cost increases for private industry workers for the 12-month period ending March 2010 ranged from 1.3 percent for management, professional, and related occupations to 2.1 percent for natural resources, construction, and maintenance occupations.
Among industries, compensation cost increases for private industry workers for the current 12-month period ranged from 1.0 percent for professional and business services to 2.8 percent for financial activities.
State and Local Government Workers
Compensation costs for State and local government workers increased 2.0 percent for the 12-month period ending March 2010. Prior published values ranged from 2.3 to 9.6 percent since the series began in June 1982. Wages and salaries increased 1.8 percent. Prior published values ranged from 1.9 to 8.5 percent since the series began, also in June 1982. Benefit costs increased 2.7 percent. Prior published values ranged from 1.2 to 8.3 percent since the series began in June 1990.
Do increases in managers’ salaries and benefit presage an increase in hiring? I’m asking to learn.
I suspect that the sharp increases in state and local government workers compensation will add fire to the already smoldering political fires surrounding the role and growth of government at all levels.
