By Brai Odion-Esene and Ian McKendry
WASHINGTON (MNI) – Compensation costs for U.S. civilian workers
increased at the slowest pace in two years, as the Employment Cost Index
rose by just 0.3% in the third quarter of this year, the same rate as
the three-month period ending in September 2009, the Bureau of Labor
Statistics reported Friday.
Private economists in a Market News International survey had looked
for a 0.6% increase, with forecasts ranging from +0.4% to +0.7%.
The ECI rose 2.0% year-over-year, greater than the 1.9% increase
for the 12-month period ending September 2010, but below the 2.2% rise
reported the previous quarter.
Wages and salaries — which make up 70% of compensation costs —
rose 0.3% in the third quarter, down from +0.4% in Q2. Benefits, making
up the remaining 30%, increased by 0.1%, down from 1.3% in Q2 and the
slowest pace since the three-month period ending in March 1999 (when
there was no change at all).
While civilian wages again saw a year-over-year increase of 1.6%,
the cost of benefits continue to grow at a faster rate, up 3.2% y/y in
the third quarter vs. a 3.6% rise in the second.
Given continued stagnant labor market conditions, private industry
compensation costs fell off the pace a bit in Q3, up just 0.4% after an
increase of 0.8% in Q2. The index was up +2.1% year-over-year.
Private sector wages and salaries rose by 0.4% and +1.7% over 12
months, while benefits were up a mere 0.1% in Q3 and +3.3%
year-over-year.
In the state and local government sector, compensation costs saw
increase in the third quarter, something not seen since the three-month
period ending in June 1992. Wages actually contracted in Q3, down 0.2%
(also a low since June 1992) after rising by 0.4% in the second quarter.
On a year-over-year basis, compensation was up 1.5% and wages up 1.0%.
** Market News International Washington Bureau: (202) 371-2121 **
[TOPICS: MAUDS$,M$U$$$,MT$$$$]
