Employment Cost Index – March, 2016; Wages and salaries increased 2.0 percent for the current 12-month period.

EMPLOYMENT COST INDEX - MARCH 2016

Compensation costs for civilian workers increased 0.6 percent, seasonally adjusted, for the 3-month period ending in March 2016, the U.S. Bureau of Labor Statistics reported today. Wages and salaries (which make up about 70 percent of compensation costs) increased 0.7 percent, and benefits (which make up the remaining 30 percent of compensation) increased 0.5 percent. (See chart 1 and tables A, 1, 2, and 3.)

Civilian Workers

Compensation costs for civilian workers increased 1.9 percent for the 12-month period ending in March 2016. In March 2015, compensation costs increased 2.6 percent. Wages and salaries increased 2.0 percent for the current 12-month period, and increased 2.6 percent for the 12-month period ending in March 2015. Benefit costs increased 1.7 percent for the 12-month period ending in March 2016.  In March 2015, the increase was 2.7 percent. (See chart 2 and tables A, 4, 8, and 12.)

Private Industry Workers

Compensation costs for private industry workers increased 1.8 percent over the year, lower than the March 2015 increase of 2.8 percent. Wages and salaries increased 2.0 percent for the current 12-month period. In March 2015, the increase was 2.8 percent. The increase in the cost of benefits was 1.2 percent for the 12-month period ending in March 2016, significantly lower than March 2015 when the increase was 2.6 percent. (See charts 3 and 4 and tables A, 5, 9, and 12.)

Employer costs for health benefits increased 3.3 percent for the 12-month period ending in March 2016, and increased 2.5 percent in March 2015. (For further information, see

www.bls.gov/web/eci/echealth.pdf.)

Among occupational groups, compensation cost increases for private industry workers for the 12-month period ending in March 2016 ranged from 1.4 percent for sales and office occupations to 2.5 percent for production, transportation, and material moving occupations. (See table 5.)

Among industry supersectors, compensation cost changes for private industry workers for the current 12-month period ranged from -1.7 percent for information to +2.8 percent for trade, transportation and utilities. (See table 5.)

State and Local Government Workers

Compensation costs for state and local government workers increased 2.4 percent for the 12-month period ending in March 2016. In March 2015, the increase was 2.1 percent. Wages and salaries increased 1.8 percent for the 12-month period ending in March 2016, the same increase as the 12-month period ending in March 2015. Benefit costs increased 3.5 percent for the 12-month period ending in March 2016, a higher rate than in the prior year when the increase was 2.8 percent. (See chart 5 and tables A, 7, 11, and 12.)

Source: BLS