By Brai Odion-Esene and Ian McKendry
WASHINGTON (MNI) – Compensation costs for U.S. civilian workers
rose at a pace not seen since before the financial crisis, as the
Employment Cost Index rose +0.7% in the second quarter of this year, the
same rate as the three-month period ending in September 2008, the Bureau
of Labor Statistics reported Friday.
Private economists in a Market News International survey had looked
for a 0.5% increase, with forecasts ranging from +0.4% to +0.6%.
The ECI rose 2.2% year-over-year, greater than the 1.9% increase
for the 12-month period ending June 2010.
Wages and salaries — which make up 70% of the index — rose 0.4%
in the second quarter. Benefits, making up the remaining 30%, were up
1.3%, a level not seen since the three-month period ending in June 2007
(+1.3%).
While civilian wages again saw a year-over-year increase of 1.6%,
benefits saw some improvement, up 3.6% y/y in the second quarter vs. a
3.0% rise in the first.
Despite stagnating labor market conditions so far in 2011, second
quarter compensation in the private industry rose at a pace not seen
since December 2007 (+0.9%), up 0.8%, and +2.3% year-over-year.
Private sector wages and salaries rose by 0.5% and +1.7% over 12
months, while benefits were up 1.6% in Q2 and +4.0% year-over-year.
In the state and local government sector, compensation costs and
wages were up 0.4% in the second quarter after increasing by 0.5% and
0.4%, respectively, in the first. On a year-over-year basis,
compensation was up 1.7% and wages up 1.2%.
** Market News International Washington Bureau: (202) 371-2121 **
[TOPICS: MAUDS$,M$U$$$,MT$$$$]
