Compensation costs for U.S. workers rose 0.4% in third quarter

Compensation costs for civilian workers increased 0.4 percent, seasonally adjusted, for the three-month period ending September 2010, the U.S. Bureau of Labor Statistics reported on October 29. Wages and salaries (which make up about 70 percent of compensation costs) increased 0.3 percent while benefits (which make up the remaining 30 percent of compensation) increased 0.6 percent.

Civilian Workers
Compensation costs for civilian workers increased 1.9 percent for the 12-month period ending September 2010. In September 2009, the increase was 1.5 percent. Wages and salaries increased 1.5 percent for the current 12-month period, the same as for the 12-month period ending in September 2009. Benefit costs accelerated to 2.7 percent, up from a 1.6 percent increase for the 12-month period ending September 2009.

Private Industry Workers
Compensation costs for private industry workers increased 2.0 percent for the 12-month period ending September 2010, higher than the 1.2 percent increase for the 12-month period ending September 2009. The wage and salary series increased 1.6 percent for the current 12-month period. The change for the period ending September 2009 was 1.4 percent. The cost of benefits increased 2.8 percent for the 12-month period ending September 2010, higher than the September 2009 increase of 1.1 percent. Employer costs for health benefits rose 4.8 percent for the 12-month period ending September 2010. In September 2009, the 12-month percent change was 4.7 percent.

Among occupational groups, compensation cost increases for private industry workers for the 12-month period ending September 2010 ranged from 1.4 percent for service occupations to 2.5 percent for production, transportation and material moving occupations.

Among industry supersectors, compensation cost increases for private industry workers for the current 12-month period ranged from 1.1 percent for leisure and hospitality to 2.9 percent for manufacturing.

State and Local Government Workers
Compensation cost increases for State and local government workers decelerated to 1.7 percent for the 12-month period ending September 2010, down from 2.4 percent for the 12-month period ending September 2009. Prior to this quarter, published values for this series, which began in June 1982, ranged from 1.8 percent in June 2010 to 9.6 percent in June 1982. The slowdown in compensation was due to wages and salaries, which increased 1.1 percent. Prior published values for this series, which also began in June 1982, ranged from 1.4 percent in June 2010 to 8.5 percent in June 1982. Benefit costs increased 2.7 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.