14

Table 7. Employment Cost Index for wages and salaries for private industry workers by bargaining status,

region, and area

(Not seasonally adjusted data) .

Indexes (June 1989=100) Percent changes for—

- . 3 months ended— 12 months ended—
Bargaining status, region, and area Dec. Sep. Dec.
1998 1999 1999 Dec. Sep. Dec. Dec. Sep. Dec.
1998 1999 1999 1998 1999 1999
Bargaining status

Union .. 133.1 135.7 | 136.5 0.5 07 0.6 3.3 25 26
Biue-collar occupations 130.6 | 133.6 | 1345 5 8 7 3.4 28 3.0
Goods-producing industriest 131.7 | 134.9 | 136.1 5 8 a 3.6 3.0 3.3
Service-producing industries? .. 134.8 | 1368 | 137.2 5 7 3 27 2.0 18
Manufacturing 133.0 135.8 137.5 & 8 13 3.4 27 3.4
Blue-collar occupations. 132.4 | 135.1 136.8 8 7 1.3 34 28 33
Nonmanufacturing .. 133.1 135.6 | 135.9 5 7 2 3.1 24 24
Nonunion .. 198.3 | 1420 | 1433 7 9 9 4.0 3.3 3.6
Blue-collar occupations 134.8 | 138.7 | 139.7 & 9 7 3.2 35 3.6
Goods-producing industries! 136.5 | 140.0 | 141.1 6 9 8 3.4 3.2 3.4
Service-producing industries? .. 138.8 | 1426 | 143.9 7 9 2 4.2 3.4 37
Manufacturing .. 138.2 | 141.7 | 142.9 7 3 B&B 35 3.2 3.4
Blue-collar occupations 137.2 | 1405 | 141.6 7 2 8 3.2 32 3.2
Nonmanufacturing 138.0 | 141.8 | 143.0 7 9 8 41 34 3.6
136.4 | 139.9 | 140.9 7 12 7 3.6 3.3 3.3
136.7 | 140.2 | 141.5 A 6 9 28 27 3.5
138.0 142.4 143.6 4 1.0 8&8 3.8 3.6 44
138.4 | 141.3 | 1426 1.2 8 2 55 34 3.0
137.7 | 141.2 | 1425 6 39 3 47 31 3.5
136.0 | 139.8 | 140.2 1.0 1.0 3 3.0 38 341

1 Includes mining, construction, and manufacturing.
2 includes transportation, communication, and public utilities;
wholesale and retail trade; finance, insurance, and real estate; and service

indystries.

3 The regional coverage is as follows: Northeast Connecticut, Maine,
Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania,
Rhode Isiand, and Vermont; South: Alabama, Arkansas, Delaware, District
of Columbia, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi,
North Carolina, Oktahoma, South Carolina, Tennessee, Texas, Virginia,
and West Virginia; Midwest: Minois, Indiana, lowa, Kansas, Michigan,

Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and
Wisconsin; and West: Alaska, Arizona, Califomia, Colorado, Hawaii,
Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, and
Wyoming.

NOTE: The indexes for these series are not strictly comparable to those
for the aggregate, occupation, and industry series.


5

Table 1. Employment Cost Index for total compensation’, wages and salaries, and benefit costs by industry and
occupational group

(Seasonally adjusted data) -
Indexes (June
: 1989=100) Percent changes for 3-months ended
Industry and occupational group
Sep. Dec. Mar. June Sep. Dec. Mar. June Sep. Dec.
1999 1999 1998 1998 1998 1998 1999 1999 1999 1999
TOTAL COMPENSATION
Civilian workers ... 142.9 144.5 07 os 09 07 0.4 an! 08 Ww
State and local government 142.6 144.2 7 7 a 7 6 8 8 Ww
Private industry .. 143.0 144.5 7 9 1.0 7 4 1.2 8 1.0
Industry
Goods producing? 141.0 142.5 7 8 7 5 7 6 a Ww
Construction3 137.5 139.0 7 12 4 12 1.0 5 7 11
Manufacturing 142.0 143.6 7 6 7 6 6 6 a 14
Durables 142.2 144.0 7 6 7 & 6 7 a) 13
Nondurables 141.6 143.0 8 6 & 5 8 6 3 1.0
Service - w-| 143.9 145.5 7 a) 12 8&8 a 14 8 1
‘Transportation and public utilitiesS | 141.8 142.5 3 12 9 7 0 Wa & 5
Wholesale trade’ .. 146.3 148.8 1.6 6 17 1.6 -3 1.3 13 17
Retail trade 139.6 141.0 ze) 8 1.0 2 7 15 4 1.0
Finance, insurance, and real
sf 147.6 148.3 16 1.2 19 Ww -7 3.0 12 5
Services 146.0 147.7 5 8 a 8 5 8 cS) 12
Nonmanufacturing .... 143.2 144.7 8 9 Ww 9 2 13 8 1.0
Occupational group
White collar 145.5 147.2 7 1.0 Wt 9 0 1.3 1.0 1.2
Blue collar 139.3 140.7 5 8 7 7 7 8 a 1.0
Service 140.5, 142.1 a) 7 & 5 Ww a a Ww
WAGES AND SALARIES
144.4 142.4 3 9 Ww 7 5 12 9 9
141.7 143.2 7 7 7 8 6 1.0 9 Ww
140.9 142.3 9 1.0 1.2 7 A 1.2 8 1.0
138.5 139.7 Ww a 8 7 8 7 9 9
132.7 133.9 1.0 13 2 1.0 1.2 5 8 3
140.2 141.5 an 7 1.0 6 8 8 32 a)
140.4 141.8 Ww 8 1.0 7 7 9 9 1.0
139.8 144.1 a & 1.0 7 6 6 9 9
142.0 143.4 a 9 14 7. 3 1.4 9 1.0
137.5 137.9 5 8 1.0 § a 13 4 3
144.3 146.6 1.9 4 1.8 15 74 9 15 16
138.6 139.9 8&8 9 13 A a 14 3 2
145.2 15 17 24 12 1.9 3.8 15 5
144.4 146.1 7 9 14 7 a 8 & 12
140.8 142.3 8 1.0 1.2 1.0 2 1.3 8 a

See footnotes at end of table.


18

this difference would be less than 1.6 times the standard error. The statements of comparisons appearing in
this publication are significant at a 1.6 standard error level or better, unless otherwise indicated. This means
that for differences cited, the estimated difference is greater than 1.6 times the standard error of the difference.

Because standard errors vary from quarter to quarter, the ECI uses a five-year moving average of
standard errors to evaluate published series. Currently, in the higher level aggregate series, the standard errors
for 3-month changes are generally 0.1 percent or less; for 12-month changes, standard errors are generally 0.25
percent or less. Currently, in the lower level series, standard errors are generally 0.3 percent or less for 3-
month changes and 0.6 percent or less for 12-month changes. Series found to have a higher average standard
error for the five years ending December 1996 are footnoted in the tables.

BLS is evaluating ECI publication standards as part of its overall quality improvement plan. The first
phase of this evaluation, a review of the statistical reliability of the ECI series, is complete. To improve the
quality of the ECI estimates, the sample size is being increased and other initiatives, such as revising
collection procedures, are being explored. All series will continue to be published until further notice,
although standard errors for some series are large. The five-year moving average of standard errors for all
estimates (excluding seasonally adjusted series) will be available on the Internet site
(http://stats.bls.gov/ecthome.htm) shortly after publication of the news release.

When comparing data by bargaining status, it is important to note that differences may be due to factors
other than bargaining status, such as occupational and industry mix. For example, union occupations tend to
be concentrated in blue-collar occupations within manufacturing industries. Thus, differences between blue-
collar and white-collar pay or differences in manufacturing versus nonmanufacturing industries could explain
such differences.

More detailed information on the ECI is available from several sources. These include annual bulletins--
Employment Cost Indexes and Levels, 1975-98, (Bulletin 2514), a chapter in the BLS Handbook of Methods
@ulletin 2490), "National Compensation Measures," and several articles published in the Monthly Labor
Review and Compensation and Working Conditions. The annual bulletins are available from the
Superintendent of Documents, U.S. Government Printing Office, Washington, Dc. 20402, or Bureau of Labor
Statistics, Publications Sales Center, P.O. Box 2145, Chicago, Llinois 60690, (312) 353-1880. Reprints of the
articles and other descriptive pieces are available upon request by calling (202) 691-6199 or sending email to
(ocltinfo@bls.gov). Current and historical data are available at the web site:
(http://stats.bls.gov/ecthome.htm).

Information in this release will be made available to sensory impaired individuals upon request. Voice
phone: (202) 606-5886; Federal Relay Service number: 1-800-877-8339.


Table 4, Employment Cost Index for total compensation’ for private industry workers, by bargaining status,

region, and area ‘
(Not seasonally adjusted data)
Indexes (June 1989=100) Percent changes for—
ini 3 months ended— 12 months ended—
Bargaining status, region, and area Dec. Sep. Dec.
1998 1999 1999 Dec. Sep. Dec. Dec. Sep. Dec.
1998 1999 1999 1998 1999 1999
Bargaining status
Union .. 140.2 141.2 Os 0.9 07 3.0 25 27
Blue-collar occupations 135.3 | 137.8 138.9 5 8 8 28 24 27
Goods-producing industries? .. 136.5 | 139.2 140.8 7 7 Ww 3.0 27 3.2
Service-producing industri 138.5 | 141.0 141.4 A 3. 3 3.0 22 a4
Manufacturing 136.9 | 139.1 141.0 7 7 14 27 23 3.0
Blue-collar occupations 136.4 | 138.5.] 140.4 7 7 14 26 22 29
Nonmanutacturing .... 137.4 | 140.3 140.8 A 8B 4 3.2 25 25
Nonunion .... 140.1 143.8 145.2 6 9 1.0 35 3.2 3.6
Blue-collar occupations 136.3 140.3 141.4 6 9 8 28 35 3.7
Goods-producing industries? .. 138.3 141.8 143.1 4 9 a 27 3.0 3.5
Service-producing industries? 140.6 | 144.4 | 145.7 6 1.0 2 3.9 34 3.6
Manufacturing .... 143.0 144.4 4 a 1.0 26 3.0 35
Blue-collar occupations 138.3 | 141.6 142.9 7 1.0 9 26 34 3.3
Nonmanufacturing 140.0 | 143.8 145.1 6 1.0 3 38 3.4 3.6
Region?
139.5 | 143.2 144.3 6 1.2 8 3.3 32 34
138.1 141.8 143.0 4 8 8 26 34 3.5
141.4 145.0 146.3 4 1.0 9 3.3 29 3.5
140.0 | 143.3 144.7 Ww 8 1.0 49 3.5 3.4
139.8 | 143.3 144.7 5 9 1.0 35 3.0 35
139.4 | 143.1 143.6 e:) 9 3 3.0 35 3.0

7 includes wages, salaries, and employer costs for employee benefits.

2 Includes mining, construction, and manufacturing.

Includes transportation, communication, and public utilities;
wholesale and retail trade; finance, insurance, and real estate; and service
indystries.

4 The regional coverage is as follows: Northeast: Connecticut, Maine,
Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania,
Rhode Island, and Vermont; South: Alabama, Arkansas, Delaware, District
of Columbia, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi,
North Carolina, Oktahoma, South Carolina, Tennessee, Texas, Virginia,

and West Virginia; Midwest: Illinois, Indiana, lowa, Kansas, Michigan,
Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and
Wisconsin; and West: Alaska, Arizona, Califomia, Colorado, Hawaii,
Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, and
Wyoming.

NOTE: The indexes for these series are not strictly comparable to those
for the aggregate, occupation, and industry series.


7

Table 2, Employment Cost Index for total compensation’ for civilian and State and local government workers by

industry and occupational group

(Not seasonally adjusted data)
. Indexes (June 1989=100) Percent changes for—
" 3 months ended— 12 months ended—
Industry and occupational group Dec. Sep. Dec.
1998 1999 1999 Dec. Sep. Dec. Dec. Sep. Dec.
1998 1999 1999 1998 1999 1999
Civilian workers: 139.8 | 143.3 | 144.6 0.6 Ww 09 3.4 34 3.4
Excluding sales occupations .. 139.5 | 143.2 144.5 5 Ww a 3.1 3.2 3.6
Industry
Goods producing? 137.9 | 141.2 142.5 5 9 9 28 29 3.3
Manufacturing .. 138.9 142.1 143.6 5 9 Ww 27 28 3.4
Service producing? 140.4 | 144.0 145.3 6 Ww ao 3.6 32 3.5
Services .... 141.7 | 145.1 146.5 6 1.3 1.0 3.0 34 34
Health services 139.1 142.7 144.3 0 9 Ww 9 26 37
Hospitals .. 140.2 143.4 145.0 & B ww 26 29 3.4
Educational services 141.0 | 144.6 | 145.8 6 2.0 8 29 3.1 3.4
Public administration 139.9 142.4 144.4 7 & 14 3.6 25 3.2
Nonmanufacturing .. 139.9 143.4 144.7 6 ani a) 3.6 3.2 3.4
‘Occupational group

141.4 | 145.0 146.3 6 12 9 3.6 34 35
141.2 145.1 146.4 A 12 9 3.1 32 3.7
Professional specialty and technical 141.0 143.9 145.3. 7 12 1.0 34 28 3.0
Executive, administrative, and managerial ..] 141.8 | 147.3 148.6 a 13 x) 3.3 40 48
Administrative support, including clerical 1413 | 144.7 | 146.1 6 9 1.0 3.2 34 3.4
Blue collar 136.1 139.5 140.6 6 a 8&8 28 34 3.3
Service 140.0 143.1 144.8 4 5 1.2 3.2 27 3.4
State and local government ... 143.1 144.6 6 15 1.0 3.0 29 3.4

Industry
139.7 | 143.2 144.5 5 19 9 27 3.0 3.4
138.8 | 142.6 143.8 a 16 8 26 28 3.6
140.7 144.2 145.8 3 15 Ww 26 28 3.6
Hospitals .. 141.2 | 144.8 146.3 4 15 1.0 26 29 3.6
Educational services 139.6 | 143.1 144.4 & 2.0 9 27 34 34
139.9 | 143.5 144.7 6 24 8 27 3.2 3.4
ry st 139.3 | 142.9 144.14 A 21 8 26 3.0 3.4
Colleges and universities 141.5, 144.8 146.5 1.0 19 12 3.1 34 3.5
Public administration’ ... 139.9 142.4 144.4 7 6 14 3.6 25 3.2

Occupational group

139.3 142.6 144.0 7 W7 1.0 28 3.0 3.4
138.5, 142.0 143.2 6 19 8 25 34 3.4
Executive, administrative, and managerial ..| 141.6 | 144.5 146.1 a 12 Ww 3.8 29 3.2
Administrative support, including clerical 140.3 143.0 145.0 & 12 1.4 3.1 25 3.4
Blue collar 137.8 | 140.9 142.5 7 1.0 WW 27 3.0 3.4
Service 143.4 | 146.7 148.6 1.0 13 44 26 3.6

1 Includes wages, salaries, and employer costs for employee benefits.

2 Includes mining, construction, and manufacturing.

3 Includes transportation, communication, and public utilities; wholesale
and retail trade; finance, insurance, and real estate; service industries; and

public administration.

4 Includes executive, legislative, judicial, administrative, and regulatory
activities of State and local governments, SIC’s 91 through 96.

5 Average standard errors (SE) for the series exceed 0.3 percent for
3-month changes and 0.6 percent for 12-month changes for the five years
‘ending December 1996. To assist users in ascertaining the reliability of the
series, SEs for estimates in this news release (excluding seasonally adjusted
series) will be available on the Intemet site (http:/istats.bis.gov/ecthome.htm).

‘All series will continue to be published unti further notice.
Formerly called hospitals and other services.


6

Table 1. Employment Cost Index for total compensation’, wages and salaries, and benefit costs by industry and
occupational group — Continued

(Seasonally adjusted data) -

Indexes (June .
: 1989=100) Percent changes for 3-months ended—
Industry and occupational group
Sep. Dec. Mar. June Sep. Dec. Mar, June Sep. Dec.
1999 1999 1998 1998 1998 1998 1999 1999 1999 1999
WAGES AND SALARIES—Continued
Occupational group
White collar .. 143.4 145.0 0.9 1.0 1.4 0.9 O01 1.4 0.9 Ww
Blue collar .. 136.8 | 137.7 a) & 8 & 8 1.0 3 7
Service ... 137.9 139.4 8&8 & 8 & 12 1.0 “A V1
BENEFIT COSTS.
147.5 149.4 4 7 7 6 3 Q 8&8 1.3
144.7 | 146.7 7 7 a) 6 6 & 3 1.4
Private industry .... 148.1 150.1 A 7 6 7 2 1.0 9 14
Industry
Goods producing? .. 146.2 | 148.4 -1 5 4 3 7 5 8 15
Manufacturing . 145.7 | 147.9 “A 4 3 1 6 5 1.0 15
Service producing? ..... 149.3 | 151.1 5 8 8 9 -1 13 1.0 12
Nonmanufacturing .. 149.3 | 151.0 6 8 8 8 1 12 9 141
Occupational group
“151.0 | 1529 5 z 8 8 of 44 14 13
144.7 | 1462 3 6 4 5 6 7 8 1.0
148.2 | 150.0 8 3 6 3 1.0 9 4 12
1 Includes wages, salaries, and employer costs for employee benefits. Intemet site (nttp://stats.bls.goviecthome.htm). All series will continue to be
2 Includes mining, construction, and mat . Published until further notice.
3 Average standard errors (SE) for the unadjusted series upon which this 4 Includes transportation, communication, and public utilities; wholesale

series is based exceeded 0.3 percent for 3-month changes and 0.6 percent —_and retail trade; finance, insurance, and real estate; and service industries.
for 12-month changes for the five years ending December 1996. To assist 5 Estimates for transportation and public reflect the changes in
users in ascertaining the reliability of the series, SEs for estimates in this SiC.coding. See Explanatory Notes for further information.

news release (excluding seasonally adjusted series) will be available on the © No identifiable seasonality was found for this series.



9

Table 3. Employment Cost Index for total compensation’ for private industry workers, by industry and occupational
group — Continued

(Not seasonally adjusted data)
Indexes (June 1989=100) Percent changes for—
i 3 months ended- 12 months ended—
Industry and occupational group Dec. Sep. Dec.
1998 1999 1999 Dec. Sep. Dec. Dec. Sep. Dec.
1998 1999 1999 1998 1999 1999
Industry-Continued
Nonmanufacturing industries 139.7 | 143.4 | 144.5 0.6 1.0 08 3.7 3.2 34
White collar .. 142.0 | 145.6 | 146.9 6 1.0 9 4.0 3.2 35
Excluding 1427 | 146.8 | 148.1 5 1.0 9 35 3.4 3.8
Blue collar 134.0 | 138.0 | 138.7 4 a 5 3.0 3.4 35
Senice .. 137.7 | 140.7 | 142.3 6 2 Ww 29 28 3.3
Occupational group
White collar .. 142.0 | 145.6 | 146.9 6 1.0 a 3.9 3.2 3.5
Excluding ‘sales 141.9 | 146.0 | 147.3 4 1.0 9 3.3 3.3 38
Professional specialty 142.6 | 145.2 | 146.7 7 8 1.0 3.5 25 29
Executive, administrative, and managerial 141.8 | 147.7 | 149.1 “A 13 a) 3.2 41 51
Sales3 142.6 | 144.1 145.3 1.6 Wa 8 68 26 1.9
141.4 | 145.0 | 146.2 6 2 8 32 34 3.4
Blue collar ...... 135.9 | 139.4 | 140.5 5 9 8 27 341 3.3
Precision production, craft, and repair 136.1 139.6 | 140.6 5 9 7 3.2 3.4 3.3
Machine operators, assemblers, and
inspectors ... 136.8 | 139.9 | 141.4 8 V1 an) 29 341 34
Transportation material moving 130.7 | 134.4 | 135.2 0 & 6 14 28 34
Handlers, equipment cleaners, helpers, and
laborers ... 1302 | 143.2 | 144.4 5 & 8 25 3.4 37
Service ..... 138.0 | 141.0 | 142.6 5 3 14 29 27 3.3
Production and nonsupervisory
occupations$ 139.0 | 141.9 | 143.1 7 8 8 3.6 28 29
7 Includes wages, salaries, and employer costs for employee benefits. and retail trade; finance, insurance, and real estate; and service industries.
2 Includes mining, construction, and manufacturing. 5 Estimates for transportation and public utilities reflect the changes in
3 average standard errors (SE) for the series exceed 0.3 percent for SiG.coding. See Explanatory Notes for further information.
‘S-month changes and 0.6 percent for 12-month changes for the five years © ‘This series has the same industry and occupational coverage as the

ending December 1996. To assist users in ascertaining the reliability of the Hourly Eamings Index, which was discontinued in January 1989.
series, SEs for estimates in this news release (excluding seasonally adjusted
series) will be available on the Intemet site (http://stats.bis.gov/ecthome.htm).
All series will continue to be published until further notice. NOTE: Dashes indicate data not available.
4 Includes transportation, communication, and public uliliies; wholesale


1

: United States y
News 6
of Labor .

Bureau of Labor Statistics Washington, D.C. 20212 |

Technical Contact: USDL: 00-27 °
(202) 691-6199 ocltinfo@bls.gov

Media Contact: TRANSMISSION OF MATERIAL
(202) 691-5902 hoyle_k@bls.gov : IN THIS RELEASE IS EMBARGOED

Internet address: UNTIL 8:30 A.M. (EST),
http://stats.bls.gov/ecthome.htm FRIDAY, JANUARY 28, 2000

EMPLOYMENT COST INDEX—DECEMBER 1999

The Employment Cost Index for December 1999 was 144.6 (June 1989=100), not seasonally adjusted,
an increase of 3.4 percent from December 1998, the U.S. Department of Labor’s Bureau of Labor Statistics
reported today. The Employment Cost Index (ECI) measures changes in compensation costs, which include
wages, salaries, and employer costs for employee benefits. .

Quarterly changes, seasonally adjusted

On a seasonally adjusted basis, the 3-month increase in compensation costs for civilian workers
(nonfarm private industry plus State and local government) was 1.1 percent during the September-December
1999 period, following a gain of 0.8 percent in June-September. Wages and salaries increased 0.9 percent
during the September-December 1999 period, the same increase as in the previous quarter. Benefit costs rose
1.3 percent during the December 1999 quarter, up from a 0.8 percent increase in the September 1999 quarter.

Table A. 3-month percent changes in Employment Cost Index. seasonally adjusted
Mar. . June Sep. Dec. Mar. June Sep. Dec.

Compensation Component 1998 1998 1998 1998 1999 1999-1999 __—1999
Civilian workers
Compensation costs 0.7 0.9 0.9 0.7 0.4 11 0.8 1.1
Wages and salaries 0.9 0.9 1.1 07° 05 1.2 0.9 0.9
Benefit costs 04° 07 0.7 0.6 0.3 0.9 0.8 13°
Private industry
Compensation costs 0.7 0.9 1.0 0.7 0.4 1.2 0.8 1.0
Wages and salaries 0.9 1.0 12 0.7 0.4 1.2 0.8 1.0
Benefit costs 0.4 0.7. 0.6 0.7 0.2 1.0 09 14
State and local government .
Compensation costs 0.7 0.7 0.7 0.7 0.6 0.8 0.8 11
Wages and salaries 0.7 0.7 0.7 0.8 0.6 1.0 0.9 11
Benefit costs 0.7 0.7 0.9 0.6. 0.6 0.6 0.3 14



12

Table 6. Employment Cost Index for wages and salaries for private industry workers by industry and occupational

group
(Not seasonally adjusted data)
Indexes (June 1989=100) Percent changes for—
i, 3 months ended— 12 months ended—
Industry and occupational group Dec. Sep. Dec. -
1998 1999 1999 Dec, Sep. Dec. Dec. Sep. Dec.
1998 1999 1999 1998 1999 1999
Private industry workers 137.4 | 141.0 | 1422 0.6 0.9 09 3.9 3.2 3.5
Excluding sales occu 136.9 | 140.8 | 142.0 4 9 9 3.4 3.3 3.7
Industry
Goods producing) .. 138.5 | 139.7 7 3 3 35 34 3.3
Excluding sales 137.8 | 138.9 6 9 8 3.4 34 3.3
it 141.7 | 143.0 6 9 9 4.0 cal 3.5
140.1 141.3 5 9 9 3.6 3.2 3.6
136.6 | 137.6 8 a) 7 3.2 3.3 3.2
133.0 133.6 6 8 5 3.5 35 3.3
140.2 141.5 6 a 9 3.5 34 3.4
142.7 | 144.0 5 a) 3 4.0 3.2 3.6
140.8 142.0 6 a) 9 3.7 3.3 3.6
138.4 | 139.7 7 9 9 31 34 3.3
140.4 | 141.8 7 9 1.0 3.8 33 3.6
142.7 | 143.6 8 8 6 3.2 40 3.8
138.3 | 139.1 A 2 6 3.6 33 3.4
148.9 149.9 1.6 23 7 2.6 5.6 47
139.7 | 140.9 6 7 9 3.2 27 3.0
Service producing? 138.4 | 142.1 | 143.3 6 a) 8 40 33 35
Excluding sales 142.6 | 143.8 4 8 8 3.4 3.4 3.8
White collar .... 143.8 145.0 6 Ww 8 43 3.3 35
Excluding sales 145.1 146.4 4 1.0 3 3.5 35 44
Blue collar .. 137.0 | 137.8 4 8 6 31 35 37
Senice ... 138.0 | 139.6 7 a 12 3.2 28 3.3
‘Transportation and pubiic utilities 1375 | 137.9 6 5 3 29 24 21
Transportation? 134.4 134.9 4 5 4 26 15 15
Public utilities 141.5 | 141.8 1.0 6 2 3.2 37 29
Communicat . 138.0 | 141.9 | 1422 1.0 6 2 3.0 38 3.0
Electric, gas, and sanitary services .. 137.4 | 140.9 | 141.3 8 6 3 3.4 34 28
Wholesale and retail trade .. 140.7 | 142.0 3 8 9 41 3.0 3.6
Excluding sales 141.8 | 143.3 4 5 1 3.8 31 3.7
Wholesale trade? 144.3 | 146.5 1.4 14 15 5.8 3.6 37
Excluding sales 144.8 | 146.4 a 1.3 1 43 37 40
138.9 139.6 +3 4 5 3.2 27 3.6
135.6 | 136.7 6 1.0 8 3.6 26 28
133.9 | 134.9 +9 8 7 28 17 3.4
1445 | 145.2 1.2 15 5 7.0 46 3.9
147.5 | 148.0 oA 19 3 45 5.6 6.0
Banking, savings and loan, and other
credit agencies? 144.4 | 159.2 | 159.6 18 3.0 3 44 8.3 10.5
140.2 | 141.5 -1 3 9 6.4 4 22
140.9 | 141.6 1.0 7 5 34 34 27
144.5 | 146.0 6 9 1.0 3.4 3.2 37
148.5 | 149.8 1.6 15 e) 5.0 47 4.0
140.6 | 142.2 1 7 1 15 23 3.5
139.3 140.9 5 7 4 25 26 3.2
- - 5 9 Ww 3.7 3.8 44
147.5 | 148.2 5 23 5 3.7 33 3.3
147.2 | 147.9 6 19 5 3.5 3.4 3.0

See footnotes at end of table.



ll

Table 5. Employment Cost Index for wages and salaries for civilian and State and local government workers, by

industry and occupational group

(Not seasonally adjusted data)
Indexes (June 1989=100) Percent changes for—
i 3 months ended- 12 months ended—
Industry and occupational group Dec. Sep. Dec.
1998 1999 1999 Dec. Sep. Dec. Dec. Sep. Dec.
1998 1999 1999 1998 1999 1999
Civilian workers ... 137.7 | 141.3 142.5 0.7 1 08 37 33 35
Excluding sales occupations 137.3 | 141.1 142.3 5 11 a) 3.4 33 3.6
industry
Goods producing! .. 135.2 | 138.6 | 199.7 6 rc) 8 35 34 33
Manufacturing 136.8 | 140.2 | 141.5 6 ze) 9 3.5 34 3.4
Service producing? 138.7 | 1423 | 1435 7 1 8 3.8 33 35
Senices .. 140.5 | 144.1 145.5 6 13 1.0 3.3 3.2 3.6
137.6 | 140.9 142.5 0 9 wd 1.6 24 36
137.1 140.1 141.6 5 9 At 2.6 27 33
140.0 | 143.7 144.7 & 22 7 3.0 3.3 34
135.9 | 139.5 141.5 8 1.2 14 3.4 35 41
137.8 141.5 142.6 6 Ww 8 3.8 33 35
139.7 | 143.3 144.6 6 12 a 4.0 3.2 35
139.5 143.5 144.8 5s 12 3 3.5 34 3.8
ity 139.4 | 142.6 144.0 6 Ww 1.0 3.3 3.0 3.3
Executive, administrative, and manager 140.3 | 145.9 147.2 A 15 a) 3.5 38 49
Administrative support, including clerical 138.6 | 142.3 | 143.5 8&8 1.0 8 3.7 35 35
Blue collar 133.3 | 137.0 137.9 Ss 9 7 34 33 35
137.0 | 140.1 141.7 7 5 Ww 3.3 29 3.4
142.2 143.5 7 19 a 3.1 33 3.6
139.2 142.9 144.0 6 21 8 29 3.3 34
138.2 | 142.1 143.2 3 18 8 28 34 36
139.2 1428 | 144.2 4 17 1.0 29 3.0 3.6
139.1 142.8 144.1 4 1.6 9 29 3.0 3.6
139.3 | 142.9 144.0 7 22 8 3.0 “33 34
139.5 | 143.1 144.2 7 2.2 8 3.0 33 3.4
139.3 | 143.4 144.1 4 23 7 27 3.2 3.4
Colleges and universities .. 139.6 | 142.6 144.4 14 2.0 1.3 37 3.6 3.4
Public administration® .... 135.9 | 139.5 144.5 8 12 14 3.4 35 44
Occupational group

White collar .. 138.5 | 142.1 143.4 7 2.0 9 3.0 33 35
Professional 138.7 | 142.5 143.6 6 22 8 27 3.3 3.5
Executive, administrative, and managerial ..| 139.3 | 142.7 144.3 2 1.6 Ww 3.9 34 3.6
Administrative support, including clerical 136.5 | 139.6 141.7 8 15 15. 3.2 3.4 38
136.0 | 139.4 140.7 7 13 a) 28 32 3.5
140.0 144.1 145.7 6 14 Ww 3.6 35 4.

1 Includes mining, construction, and manufacturing.

2 Includes transportation, communication, and public utilities; wholesale
and retail trade; finance, insurance, and real estate; service industries; and
public administration.

Includes executive, legislative, judicial, administrative, and regulatory
actiyities of State and local governments, SIC's 91 through 96.
‘Average standard errors (SE) for the series exceed 0.3 percent for

‘3-month changes and 0.6 percent for 12-month changes for the five years
ending December 1996. To assist users in ascertaining the reliability of the
series, SEs for estimates in this news release (excluding seasonally adjusted
series) will be available on the Intemet site (httpy/stats.bls.gov/ecthome.htm)..
All Series will continue to be published until further notice.
5 Formerly called hospitals and other services.


8

Table 3. Employment Cost Index for total compensation’ for private industry workers, by industry and occupational
group

(Not seasonally adjusted data) °

Indexes (June 1989=100) Percent changes for—
7 3 months ended— 12 months ended—
Industry and occupational group Dec. Sep. Dec.
1998 1999 1999 Dec. Sep. Dec. Dec. Sep. Dec.
1998 1999 1999 1998 1999 1999
Private industry workers 139.8 | 143.3 | 144.6 0.6 0.9 0.9 3.5 3.1 3.4
Excluding sales occup: 139.4 | 143.2 | 144.5 A a 9 34 3.2 3.7
Industry
Goods producing? 137.8 | 141.1 | 142.5 5 a 1.0 28 29 3.4
Excluding sales 137.2 | 140.5 | 141.8 5 9 e) 27 29 3.3
White collar 140.2 | 143.9 | 145.5 A & inl 29 3.0 3.7
Excluding 142.5 | 143.9 4 8 1.0 28 3.0 3.7
Blue collar 139.4 | 140.7 x) 8 9 26 29 3.2
Construction’ .... 137.9 | 138.7 7 7 6 3.5 3.4 3.3
Manufacturing 142.4 143.6 5 a 141 27 28 34
White collar 140.5 | 144.3 | 145.8 3 9 1.0 28 3.0 3.8
i 138.7 | 142.5 | 143.8 3 8 a 25 3.0 3.7
137.7 | 140.5 | 142.1 7 & wt 25 27 3.2
139.2 | 1423 | 144.0 5 a 12 2.6 27 3.4
140.6 | 143.7 | 146.9 3 2 22 27 32 45
137.4 | 1398 | 141.7 0 2 1.4 23 17 3.1
144.4 | 149.0 | 154.4 26 23 36 3.4 58 69
138.2 | 141.5 | 142.8 4 8 3 28 2.8 33
140.5 | 144.1 | 145.3 6 9 8 38 3.2 3.4
140.6 | 144.6 | 145.9 4 9 9 3.3 3.3 3.8
142.2 | 1458 | 147.0 7 1.0 8 41 3.3 3.4
142.8 | 147.0 | 148.3 4 1.0 a 3.4 3.4 3.9
134.8 | 139.1 139.8 4 a 5 3.0 3.6 37
137.8 | 140.8 | 142.4 & 2 Ww 29 28 3.3
139.3 | 141.8 | 142.3 6 6 4 3.8 24 2.2
137.3 | 138.7 | 139.5 4 4 6 29 15 1.6
141.9 | 145.7 | 146.1 3 8 3 5.0 3.6 3.0
141.7 | 146.1 | 146.0 9 8 “A 57 4.0 3.0
142.1 145.1 | 146.1 8 6 7 42 29 28
138.2 | 142.2 | 143.5 4 8 3 4.0 33 3.8
138.8 | 142.8 | 144.3 5 6 Wt 3.6 34 4.0
1428 | 146.3 | 148.5 14 12 15 5.7 3.9 4.0
141.2 | 145.8 | 147.4 3 1.3 Wi 43 41 44
135.6 | 140.0 | 140.7 2 6 5 3.0 3.0 3.8
134.0 | 137.2 | 138.3 & 12 8 34 3.0 3.2
132.7 | 137.0 | 138.1 7 1.0 8 26 25 4d
142.5 | 147.6 | 148.3 nl 12 5 5.9 47 41
143.3 | 151.0 | 151.6 a 15 4 41 5.4 58
Banking, savings and loan, and other
credit agencies’ .. 146.7 | 159.3 | 159.8 ad 25 3 43 73 8.9
141.7 | 1445 | 145.8 A 3 a) 51 18 29
142.5 | 146.2 | 147.0 & 6 5 28 3.2 3.2
142.7 | 146.1 | 147.6 6 1.0 1.0 3.0 3.0 3.4
145.9 | 150.7 | 151.9 17 13 & 5.3 5.0 41
139.0 | 1426 | 144.2 0 8 V1 7 26 3.7
139.9 | 143.0 | 144.6 & 6 qa 25 28 3.4
= - - & 9 Wa 3.2 3.7 42
147.7 | 152.2 | 153.0 5 24 5 3.6 35 3.6
Colleges and universities 148.5 ) 1526 | 153.3 5 2.0 5 3.3 32 3.2

See footnotes at end of table.


Employment Cost Index

Chart A. Changes in wages and
salaries and benefit costs,
private industry

Chart B. Changes in compensation,
seasonally adjusted and not seasonally
adjusted, private industry

Wages & salaries Benefits

Seasonally adjusted Not seasonally adjusted

12-month percent change

FET FPP FPPT FPP PPPS FPP PN FPP FO FY POT FOTN PET PT PTY PPT PT

3-month percent change
3.5

3
2.5

JPPPT POPC FPPT FOYT POPS POPE FPET FPPT FPP FPP PPT PT FP PY FP

81 83 85 87 89 91 93 95 97 99

81 83 85 87 89 91 93 95 97 99

Chart C. Changes in compensation,
goods-producing and service-
producing sectors, private industry

Goods-producing Service-producing

Chart D. Changes in compensation,
white-collar and blue-collar
occupations, private industry

12-month percent change

127

10F

Dutlbbeb biti bollbebadablsdeda be bad

White-collar Blue-collar

12-month percent change
25

Ca em rer rv nt f9 7 Ft FFP ET OY FP FO PFO

Bureau of Labor Statistics, Office of Compensation Levels and Trends December 1999 _ocltinfo@pbls.gov

81 83 85 87 89 91 93 95 97 99

81 83 85 87 89 91 93 95 97 99

(202) 691-6199


15

ian, State and local government, and private industry
jing status

Table 8. Employment Cost Index for benefits for ci
workers by industry, occupational group, and bargai

(Not seasonally adjusted data)
Indexes (June 1989=100) Percent changes for—
Industry, occupational group, and 3 months ended— 12 months ended—
bargaining status Dec. Sep. Dec.
1998 1999 1999 Dec. Sep. Dec. Dec. Sep. Dec.
1998 1999 1999 1998 1999 1999
Civilian workers .... 144.7 | 147.9 149.5 05 0.9 Ww 26 27 3.3
State and local government 142.7 145.0 146.7 4 7 1.2 3.0 2.0 2.8
Private industry ..... 145.2 148.6 150.2 5 2 Ww 24 28 34
Industry
Goods producing? 143.2 | 1463 | 148.2 a & 1.3 1.2 23 3.4
Service producing? 145.7 149.4 | 150.7 6 1.0 a9 3.0 34 3.4
Manufacturing 142.7 | 145.7 | 147.8 A 8 1.4 7 22 3.4
Aircraft manufacturing 145.3 | 145.6 | 153.9 1.0 a 5.7 1.6 13 5.9
White collar3 143.9 | 1429 | 147.6 AA a 3.3 -6 18 26
Blue collar 146.6 | 149.5 | 163.0 42 22 9.0 5.0 63 11.2
Nonmanufacturing 145.8 | 149.4 | 150.7 6 3 9 3.0 3.0 3.4
Occupational group
147.4 151.0 152.5 5 11 1.0 28 3.0 3.5
141.6 | 1448 | 146.2 A 8 1.0 19 27 3.2
144.8 148.4 149.9 A 5 1.0 2.0 26 35
Bargaining status
Union ... 145.5 | 148.3 | 149.7 3 1.0 9 25 23 28
Nonunion: 144.9 | 148.5 | 150.0 5 1.0 1.0 24 3.0 35
7 Includes mining, construction, and manufacturing. ending December 1996. To assist users in ascertaining the reliability of the

Includes transportation, communication, and public utilities; series, SEs for estimates in this news release (excluding seasonally
wholesale and retail trade; finance, insurance, and real estate; and service adjusted series) will be available on the Intemet site
industries. (httpy/stats.bis.gov/ecthome.htm). All series will continue to be published

3 Average standard errors (SE) for the series exceed 0.3 percent for _until further notice.
‘3-month changes and 0.6 percent for 12-month changes for the five years


17

an article "Introducing 1990 Weights for the Employment Cost Index," published in the June 1995 issue of
Compensation and Working Conditions (available upon request). From June 1986 through December 1994,
employment counts from the 1980 Census were used as weights. Before June 1986, employment counts from
the 1970 Census were used.

For the series based on bargaining status, region, and area size, employment data are not available. The
employment weights are reallocated within these series each quarter based on the current ECI sample. The
indexes for these series, consequently, are not strictly comparable to those for the aggregate, industry, and
occupation series. A fuller explanation of the calculation of index numbers appears in an article, "Estimation
Procedures for the Employment Cost Index," in the May 1982 issue of the Monthly Labor Review.

Beginning with the March 1990 ECT release, indexes were rebased to June 1989=100. A description of
the rebasing is included in the article "Employment Cost Index Rebased to June 1989," in the April 1990 issue

of the Monthly Labor Review.

Beginning with the December 1990 ECT release, seasonally adjusted data are available for selected ECI
series. Seasonal adjustment removes the effects of events that follow a more or less regular pattern each year.
These adjustments make nonseasonal patterns easier to identify. ECI series are seasonally adjusted using
either direct or composite seasonally adjusted estimates. Industry and occupational series, such as
construction and service occupations, are adjusted directly. More aggregate series, such as civilian or private
industry workers, use composite estimates. The composite estimates could be obtained by aggregating either
the industry or the occupational components, and the results may differ depending on which method is used.
The aggregate seasonally adjusted ECI series are estimated by combining the component seasonally adjusted
industry series. The seasonal adjustment factors are recalculated once a year. The March release contains data
reflecting the newly updated seasonal adjustment factors. The historical data for the last five years are then
revised based on the newly estimated factors. The new seasonally adjusted factors for 2000, and revised
seasonally adjusted indexes for the past five years, will be available Tuesday, April 25, 2000 on the Internet at
(http://stats.bls.gov/ecthome.htm) or upon request. The factors are also published in the summer issue of

Compensation and Working Conditions.

The ECI sample is rotated approximately every five years; this makes it more representative and reduces
respondent burden. The sample is replaced on a cross-area, cross-industry basis and is being integrated with
the Bureau’s National Compensation Survey (NCS). Integrated samples result in an increase in the number of
private industry establishments and occupations in the survey. The NCS-ECI sample will be completely
integrated in 2001.

The costs per hour worked of compensation components, based on March data from the ECI, are
published in a separate news release titled "Employer Costs for Employee Compensation - March 1999," and
in an annual bulletin, Employer Costs for Employee Compensation, 1986-98, (Bulletin 2508). A description
of the cost levels data (ECEC) is provided in the article "Analyzing Employers' Costs for Wages, Salaries, and
Benefits" in the October 1987 issue of the Monthly Labor Review. This article, along with other ECEC
research articles, also appears in the annual bulletin. The cost levels are calculated with current employment
weights, rather than the fixed 1990 weights used in computing the ECI. Therefore, year-to-year changes in the
cost levels usually differ from those in the ECI.

Because the ECI is a sample survey, it is subject to sampling errors. Sampling errors are differences that
occur between the results computed from a sample of observations and those computed from all observations
in the population. The estimates derived from different samples selected using the same sample design may
differ from each other. A measure of the variation among these differing estimates is the standard error. It can
be used to measure the precision with which an estimate from a particular sample approximates the expected
result of all possible samples. The chances are about 68 out of 100 that an estimate from the survey differs
from a complete population figure by less than the standard error. The chances are about 90 out of 100 that


3
The compensation cost change for nonunion workers in private industry was 3.6 percent over the year,
while the change for union workers was 2.7 percent. In service-producing industries, union compensation
increased 2.1 percent, and nonunion compensation increased 3.6 percent. In goods-producing industries, the
increase for union workers was 3.2 percent, and the increase for nonunion workers was 3.5 percent.
Compensation in blue-collar occupations increased 2.7 percent for union workers and 3.7 percent for nonunion
workers. (See table 4.)

State and local government

In State and local government, the December 1999 over-the-year increase in wages and salaries was 3.6
percent, as compared with a 3.1 percent increase in December 1998. Benefit costs in December 1999
increased 2.8 percent. In December 1998, the increase was 3.0 percent. (See tables 5 and 8.)

NOTES:

The new seasonal factors for 2000, along with revised seasonally adjusted indexes for the past five years,
will be available Tuesday, April 25, 2000. The ECI for March 2000 is scheduled to be released Thursday,
April 27, 2000, at 8:30 a.m. (EDT).

In June 2000, the Bureau of Labor Statistics plans to expand the definition of nonproduction bonuses in
the ECI to represent better the compensation packages offered to employees. In addition to the traditional
types of nonproduction bonuses, such as attendance bonuses and lump sum payments, the ECI will include
hiring and referral bonuses. Hiring bonuses are payments made by the employer to induce an individual to
accept employment; referral bonuses are made by the employer to an employee for recommending an applicant
who is hired by the establishment.

As part of its ongoing research program, the Bureau of Labor Statistics is currently conducting research
on stock option plans. This research will be completed in stages. Beginning in early 2000, the BLS will
conduct a test survey of the incidence of stock option plans across all industries and occupations. The
prevalence of these plans, based on test results, and the potential impact on compensation costs will determine
the next stage of research. The results of the incidence survey will be published in late 2000.

ECI data are available on the ECI home page (http://stats.bls.gov/ecthome.htm). To access data using
Anonymous FTP, use the Internet address (ftp://ftp.bls.gov).

For technical assistance in using the BLS Internet site, send e-mail to (labstat.helpdesk @bls.gov). For
ECI data requests, send e-mail to (ocltinfo@bls.gov).

The ECI news release is now available through an e-mail subscription service. Please see the
subscription link on (http://stats.bls.gov/ecthome.htm) or (http://stats.bls.gov/newsrels.htm).

News releases and other information are available from the BLS fax-on-demand service. To request a
document fax, call (202) 606-6325. To request a catalog of available documents, select option 2 at the initial
voice prompt. To request data found in this news release, enter the following codes:

Text - 4110
Tables 1-4 4115
Tables 5-7 4120
Table 8 4125

Explanatory notes 4190



2

The 3-month increase in compensation costs for private industry workers was 1.0 percent during the
September-December 1999 period. The gain in wages and salaries also was 1.0 percent in December; in
September, it was 0.8 percent. Benefit costs showed a 3-month rise of 1.4 percent during the December
quarter, compared with 0.9 percent during the September period. (See tables A and 1.)

Compensation costs for State and local government workers increased 1.1 percent during the September-
December 1999 period; in the September period, it was 0.8 percent. Wages and salaries rose 1.1 percent in
December; in September, the increase was 0.9 percent. Benefit costs increased 1.4 percent in the December
quarter, up from 0.3 percent in the previous quarter. The large increase in State and local government benefit
costs was due, in part, to increases in health insurance and paid leave.

Over-the-year changes, not seasonally adjusted

Compensation costs for civilian workers (not seasonally adjusted) increased 3.4 percent for the year
ended in December 1999. This compares with over-the-year increases of 3.4 percent in December 1998 and
3.3 percent in December 1997. Compensation costs in private industry also rose 3.4 percent in December
1999, following increases of 3.5 percent in December 1998 and 3.4 percent in December 1997. Compensation
costs in State and local government increased 3.4 percent for the year ended December 1999; over-the-year
increases were 3.0 percent in December 1998 and 2.3 percent in December 1997. (See tables B, 2, and 3.)

Nonfarm private industry

In private industry, wages and salaries rose 3.5 percent for the year ended December 1999, after
increasing 3.9 percent in the year ended December 1998. (See tables B and 6.) Benefit costs for private
industry workers increased 3.4 percent for the year ended in December 1999, compared with 2.4 percent in
December 1998. (See chart A and tables B and 8.)

In private industry, over-the-year compensation cost increases were 3.5 percent for white-collar
occupations, 3.3 percent for blue-collar occupations, and 3.3 percent for service occupations. (See table 3.)

Table B. 12-month percent changes in Employment Cost Index, not seasonally adjusted
Dec. Dec.

. Dec. Dec. Dec. Dec.
Compensation Component 1994 1995 1996 1997 1998 1999

Civilian workers
Compensation costs 3.0 2.7 2.9 3.3 34 3.4
Wages and salaries 2.8 2.9 3.3 3.8 3.7 3.5
Benefit costs 3.4 2.3 2.0 2.1 2.6 3.3
Private industry
Compensation costs 3.1 2.6 3.1 3.4 3.5 3.4
Wages and salaries 2.8 2.8 3.4 3.9 3.9 3.5
Benefit costs 37 2.2 2.0 2.3 24 3.4
State and local government
Compensation costs 3.0 2.9 2.6 2.3 3.0 3.4
Wages and salaries 3.1 3.2 2.8 2.7 3.1 3.6
Benefit costs 2.8 2.6 2.2 13 3.0 2.8

For the year ended December 1999, the private industry compensation cost increase was 3.4 percent for
both service-producing and goods-producing industries. For the year ended in December 1998, compensation
costs rose 3.8 percent in service-producing industries and 2.8 percent in goods-producing industries. (See
table 3.)


13

Table 6. Employment Cost Index for wages and salaries for private industry workers by industry and occupational
group — Continued

(Not seasonally adjusted data)
Indexes (June 1989=100) Percent changes for—
3 months ended— 12 months ended—
Industry and occupational group Dec. Sep. Dec.
1998 1999 1999 Dec. Sep. Dec. Dec. Sep. Dec.
1998 1999 1999 1998 1999 1999
Industry—Continued
Nonmanufacturing industries 137.4 | 141.0 | 1421 0.7 09 0.8 4.0 3.3 3.4
White collar .. 139.8 | 143.5 | 144.7 6 Ww 8 4.3 3.3 3.5
i 140.3 | 144.6 | 145.9 4 1.0 9 3.5 3.4 40
131.1 135.1 135.8 5 8 5 3.1 35 3.6
135.1 137.9 | 139.5 7 a 1.2 3.2 28 3.3
Occupational group
White collar 139.9 | 1435 | 144.8 6 1.0 9 42 3.2 35
ir 139.7 | 143.9 |} 145.2 4 1.0 9 3.6 3.5 3.9
139.7 | 142.6 | 1441 7 6 Ww 3.6 28 3.4
140.5 | 146.4 | 147.6 -3 15 8 35 3.9 5.1
141.3 | 142.1 143.3 18 WwW 8B 75 24 14
Administrative support, including
clerical ..... 138.9 | 142.7 | 143.8 7 9 8 3.7 35 35
136.8 | 137.7 6 9 7 3.2 3.3 3.4
136.7 | 137.5 5 8 6 3.3 3.3 3.4
Machine operators, assemblers, and
inspectors ... 134.9 | 138.3 | 139.5 8 12 a) 3.3 3.4 3.4
Transportation and material moving .. 127.8 | 131.9 | 132.7 2 7 6 22 3.4 3.8
Handlers, equipment cleaners, helpers, and
laborers .... 135.8 | 139.4 | 140.4 5 8 7 3.0 32 3.4
Service ... 135.3 | 138.0 | 139.6 7 a) 1.2 3.2 27 3.2
Production and nonsupervisory
occupationsS 136.4 | 1393 | 140.4 BS) 8 8 40 3.0 29
7 Includes mining, construction, and manufacturing. and retail trade; finance, insurance, and real estate; and service industries.
. 2 Average standard errors (SE) for the series exceed 0.3. percent for Estimates for transportation and public utilities reflect the changes in
S-month changes and 0.6 percent for 12-month changes for the five years SIG coding. See Explanatory Notes for further information.
ending December 1996. To assist users in ascertaining the reliability of the This series has the same industry and occupational coverage as the

series, SEs for estimates in this news release (excluding seasonally adjusted Hourly Eamings index, which was discontinued in January 1989.
‘sefies) will be available on the Intemet site (http//stats.bls.gov/ecthome. htm).
All series will continue to be published untii further notice.
Includes transportation, communication, and public utilities; wholesale NOTE: Dashes indicate data not available.


16
EXPLANATORY NOTES

The Employment Cost Index (ECI) is a measure of the change in the cost of labor, free from the
influence of employment shifts among occupations and industries. The compensation series includes changes
in wages and salaries and employer costs for employee benefits. The wage and salary series and the benefit
cost series provide the change for the two components of compensation.

Wages and salaries are defined as the hourly straight-time wage rate or, for workers not paid on an
hourly basis, straight-time earnings divided by the corresponding hours. Straight-time wage and salary rates
are total earnings before payroll deductions, excluding premium pay for overtime and for work on weekends
and holidays, shift differentials, and nonproduction bonuses such as lump-sum payments provided in lieu of
wage increases. Production bonuses, incentive earnings, commission payments, and cost-of-living
adjustments are included in straight-time wage and salary rates.

Benefits covered by the ECI are: Paid leave--vacations, holidays, sick leave, and other leave;
supplemental pay--premium pay for work in addition to the regular work schedule (such as overtime,
weekends, and holidays), shift differentials, and nonproduction bonuses (such as lump-sum payments provided
in lieu of wage increases); insurance benefits--life, health, short-term disability, and long-term disability;
retirement and savings benefits—defined benefit and defined contribution plans; legally required benefits--
Social Security, Federal and State unemployment insurance, and workers' compensation; and other benefits--
severance pay and supplemental unemployment plans.

The ECT provides data for the civilian economy, which includes the total nonfarm economy except
private households and the Federal government. The private industry series and the State and local
government series provide data for the two sectors separately.

Data for this quarter were collected from a probability sample of approximately 27,100 occupational
observations within about 6,300 sample establishments in private industry and approximately 4,000
occupations within about 800 sample establishments in State and local governments. Data are collected for
the pay period including the 12" day of the survey months of March, June, September, and December.

The sampled establishments are classified by industry categories based on the 1987 Standard Industrial
Classification (SIC), as defined by the U.S. Office of Management and Budget. In 1996, some establishments
in motor freight transportation and warehousing (SIC 42), transportation by air (SIC 45), and transportation
services (SIC 47) were reclassified into air courier services (SIC 4513), which includes support
establishments. While the establishments in question were engaged in the delivery of letters, parcels, and
packages, they were operated by enterprises engaged in furnishing air delivery of individually addressed
letters, parcels, and packages. The ECI sample introduced these reclassifications with the June 1998 reference
period.

Within an establishment, specific job categories are selected to represent broader occupational groups.
Since March 1995, the jobs are classified according to the 1990 Census, which differs little from the 1980
Census. From June 1986 through December 1994, the jobs were classified according to definitions used in the
1980 Census. Prior to June 1986, they were classified according to the 1970 Census. Differences between the
two classification systems are slight, as indicated in the article "Introducing New Weights for the Employment
Cost Index," in the June 1985 issue of the Monthly Labor Review.

Fixed employment weights are used each quarter to calculate the most aggregate indexes--civilian,
private, and State and local government. These fixed weights are also used to derive all of the industry and
occupation series indexes. Since March 1995, 1990 employment counts, primarily from the Bureau's
Occupational Employment Statistics survey, have been used. A description of the reweighting is included in