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—
is 3 months ended— 12 months ended-
Bargaining status, region, and area June Mar. June
1997 | 1998 | 1998 | June Mar. June June Mar. June
1997 1998 1998 1997 1998 1998
Bargaining status
UNION ......-esceseeseeseee 126.9 129.6 | 130.7 0.7 05 08 22 29 3.0
Biue-collar occupations .. 124.7 | 127.2 | 128.5 9 4 1.0 22 29 3.0
Goods-producing industries? 125.4 | 127.9 | 129.4 1.0 6 1.2 24 34 32
Service-producing industries? 128.8 131.8 | 132.2 5 5 3 241 28 26
Manufacturing ... 126.5 129.6 | 130.4 7 8B & 24 3.2 3.1
Blue-collar occupations 126.2 | 129.0 | 130.0 6 5 8 2.2 29 3.0
Nonmanufacturing ... 127.1 129.6 | 130.8 8 4 3 23 28 29
Nonunion ..... 130.3 | 134.5 | 135.7 a) an a) 35 42 41
Blue-collar occupations 128.9 | 132.0 | 132.9 11 VW 7 3.4 35 34
Goods-producing industries! 130.2 | 133.6 | 134.7 1.0 1.2 8 3.3 3.6 35
Service-producing industnes? 130.2 | 134.6 | 135.9 9 a 1.0 3.6 43 44
131.7 | 135.1 136.2 Ww 12 8&8 3.3 37 34
131.2 | 134.4 | 135.1 11 Ww 5 3.6 3.5 3.0
129.7 134.0 | 135.3 9 11 1.0 3.6 43 43
129.8 | 132.6 | 133.8 8 8 9 3.0 3.0 34
129.4 | 134.0 | 134.9 7 8 7 3.4 43 43
130.4 | 134.7 | 136.0 ar 1.3 1.0 3.3 44 43
128.9 | 132.9 | 134.5 a) 13 12 3.3 41 43
129.9 133.8 | 135.1 a an 1.0 3.3 4.0 4.0
128.8 132.5 | 133.4 a) 4 7 37 3.8 3.6

1 Includes mining, constructon. and manutacturing.

2 Includes transportaton. commurscabon, and public _ utilities;
wholesale and retail trade, tnance. surance, and real estate; and service
industries.

3 ‘The regional coverage 16 as fofows Northeast: Connecticut, Maine,
Massachusetts, New Hampstwe New Jersey. New York, Pennsylvania,
Rhode Island, and Vermont. Soutn Alabama, Arkansas, Delaware, District
of Columbia, Florida, Georgia Kentucky. Loursiana, Maryland, Mississippi,
North Carolina, Oklahoma. Sout Caroina, Tennessee, Texas, Virginia,
and West Virginia; Midwest Minos, 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
Mar. June Sep. Dec. Mar. June Sep. Dec. Mar. June
1998 1998 1996 1996 1997 1997 1997 1997 1998 1998
TOTAL COMPENSATION
Civilian workers .. 136.1 137.3 0.6 0.7 07 0.8 0.8 1.0 0.7 09
‘State and local government 136.5 | 137.5 6 7 6 5 6 6 8 7
Private industry ..... 136.0 | 137.2 7 7 6 a 38 1.0 7 9
Industry

Goods producing? 135.0 | 136.2 6 7 3 a 8 A 6 9
Construction3 | 130.9 | 132.5 4 9 & 8 7 5 7 1.2
Manufacturin, .| 136.3 | 137.0 8 7 3 8 7 5 7 5
Durables 136.5 | 137.3 6 6 2 8 7 6 5 6
Nondurables 135.8 | 136.5 1.2 7 4 a 8&8 5 3 5
Service producings ...... 136.5 | 137.7 7 7 8 8 a 1.3 7 a
Transportation and public uti itiesS 135.5 | 137.3 5 a 4 7 8 1.0 1.0 1.3
Wholesale trade -| 137.8 | 138.3 7 9 14 4 8 5 1.8 4
Retail trade ... 133.4 | 134.4 1.0 1 14 7 a) 6 13 7

Finance, insurance, and real
136.7 | 138.4 3 ~6 24 6 3 3.1 1.6 12
139.2 | 140.3 8 6 7 9 1.0 1.2. s 8
135.9 | 137.2 6 8 8 8 8&8 13 7 1.0

Occupational group
White collar 138.0 | 139.3 a) 6 8 8 3 13 8 3
Blue collar .. 133.1 134.1 A 9 3 8 8 7 5 8
Service ... 134.9 | 135.8 6 1.0 9 a 1.6 5 1.0 7
WAGES AND SALARIES .
Civilian workers .. 133.9 | 135.1 7 7 8 a Q Ww 8 a)
135.1 136.1 6 8&8 6 & 7 8 7 7
133.6 | 134.9 7 7 9 9 1.0 Ww 8 1.0
Industry

Goods producing?.6 132.0 | 133.2 8 & 6 V1 8&8 5 V1 9
Construction3 126.3 | 127.9 6 7 Ww 9 8 6 1.0 13
Manufacturing® 193.7 | 134.6 9 5 5 9 8 7 1 7
Durables& 133.4 | 134.5 a 5 5 9 8 5 11 8
Nondurables 134.2 | 134.7 WW 7 5 9 8&8 a) 11 4
Service producing .. 134.3 | 135.6 7 8 9 9 Ww 14 8 1.0
Transportation and public util ties® 131.9 133.0 7 8B & & x] 8B 5 8&8
Wholesale trade3 136.5 | 136.8 6 9 1.6 2 8 5 2.2 2
Retail trade 132.0 | 133.3 1.0 1.4 1.0 1.0 9 7 WwW 1.0
132.6 | 134.8 2 0 1.9 & a) 3.3 15 17
137.1 138.4 7 6 3 Ww 1.2 11 7 9
133.4 | 134.7 6 1.0 9 B] 1.0 1.3 8&8 1.0

See footnotes at end of table.


18
(Bulletin 2504) is scheduled to be published in late August. A separate bulletin on Employer Costs for
Employee Compensation is also planned. The annual bulletin is available from the Superintendent of
Documents, U.S. Government Printing Office, Washington, D.C. 20402, or Bureau of Labor Statistics,
Publications Sales Center, P.O. Box 2145, Chicago, Illinois 60690, (312) 353-1880. Reprints of the articles
and other descriptive pieces are available upon request by calling (202) 606-6199 or sending email to
ocltinfo@bls.gov Current and historical data are available on the Internet at:
http://stats.bls.gov/ecthome.htm

Information in this release will be made available to sensory impaired individuals upon request. Voice
phone: (202) 606-7828, Telecommunications Device for the Deaf (TDD) phone: (202) 606-5897, TDD
Message Referral Phone Number: (800) 326-2577.


10

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—
Bargaining status, region, and area dune Mar dune 3 months ended— 12 months ended
1997 1998 1998 June Mar. June June Mar. June
1997 1998 1998 1997 1998 1998
Bargaining status
Union .... 131.8 | 134.0 | 135.3 0.6 0.4 1.0 1.6 23 27
Blue-collar occupations 129.9 | 131.8 | 133.3 8 2 Ww 15 22 2.6
Goods-producing industries? 131.2 | 132.7 | 134.3 eS) 2 1.2 17 21 24
Service-producing industries3 132.4 | 135.3 | 136.2 4 & 7 1.6 2.6 29
Manufacturing .. 131.7 | 133.6 | 134.6 7 2 7 15 21 2.2
Blue-collar occupations 131.4 | 133.1 134.2 7 A 8 15 2.0 24
Nonmanufacturing .. 131.5 | 133.9 | 135.3 7 5 1.0 1.8 25 29
Nonunion ..... 132.8 | 136.7 | 137.8 8&8 1.0 8 32 37 3.8
Blue-collar occupations 131.2 | 133.8 | 134.7 1.0 a 7 34 3.0 27
Goods-producing industries? 133.2 135.9 | 136.9 a 9 7 29 3.0 28
Service-producing industries? .. 132.5 | 136.7 | 138.0 8 1.0 1.0 3.3 4.0 42
Manufacturing .. 134.4 | 137.2 | 138.0 1.0 1.0 6 3.0 3.4 27
Blue-collar occupations 136.0 | 136.7 1.0 9 5 3.2 29 24
Nonmanufacturing .. 136.3 | 137.5 8&8 1.0 a 3.3 4.0 4.0
Region?
133.1 136.0 | 137.0 7 7 7 26 29 29
131.5 | 135.5 | 136.4 5 a 7 29 3.6 3.7
134.7 | 138.3 | 139.6 Ww 1.0 9 34 3.8 3.6
131.4 | 135.2 | 136.6 8 13 1.0 3.2 3.8 4.0
Metropolitan 132.8 | 136.4 | 137.5 8 1.0 8&8 29 3.6 3.5
Other..... 132.4 | 135.9 | 137.1 8 4 3 3.4 34 35

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

3 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, Pennsyivania,
Rhode Island, and Vermont; South: Alabama, Arkansas, Delaware, District
of Columbia, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi,
North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia,

and West Virginia; Midwest: Illinois, indiana, towa, 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 June Mar. June
1997 1998 1998 June Mar. June June Mar. June
1997 | 1998 | 1998 | 1997 | 1998 | 1998
Civilian workers ... 1328 | 136.3 | 137.4 0.6 0.8 0.8 28 3.3 35
Excluding sales occupations 133.0 | 136.4 | 137.4 7 8 7 28 3.3 3.3
Industry
Goods producing? 192.7 | 195.1 | 136.3 a) 7 x) 26 27 27
Manufacturing 133.8 | 136.4 | 137.2 2 8 6 26 29 25
Service producing3 132.9 | 136.8 | 137.7 6 1.0 7 29 3.6 3.6
Services . 134.9 | 138.3 | 139.0 6 5 5 28 34 3.0
Health services 135.7 | 198.0 | 138.5 4 a 4 17 24 24
Hospitals 134.6 | 187.1 | 138.2 3 3 8 13 22 27
Educational services 134.2 | 137.5 | 137.7 a 4 a4 2.6 26 26
Public administration 133.0 | 136.4 | 137.4 ) 1.0 7 2.6 26 33
* Nonmanutacturing .... 192.5 | 186.2 | 137.3 & 8 8 29 34 3.6
Occupational group
White collar .... .| 183.9 | 137.7 | 138.7 6 x) 7 3.0 3.5 3.6
Excluding sales .| 134.3 | 138.1 | 138.9 6 x) 6 29 34 3.4
Professional specialty 134.6 | 137.5 | 138.3 7 & 6 24 28 27
Executive, administratve, and managerial 134.0 | 139.1 | 139.7 6 13 4 3.8 44 43
Administrative support, including clencal 134.6 | 138.0 | 139.3 7 8 x) 29 3.3 35
Blue collar 130.9 | 133.2 | 134.3 8 6 8 25 26 26
Senice ... 192.7 | 136.9 | 137.9 5 1.0 7 34 3.7 3.9
State and local government . 133.3 | 136.5 | 136.9 a 6 3 24 25 27
Industry
Services . 193.3 | 196.5 | 136.6 a 4 a4 23 25 25
Excluding schoots 5.6 132.9 | 136.1 | 136.2 3 6 a 1.6 27 25
Health services 134.9 | 137.9 | 138.0 3 5 a 14 25 23
.| 135.2 | 138.4 | 138.4 3 & 0 15 27 24
.| 133.2 | 136.3 | 136.5 a 3 a 25 24 25
.| 133.5 | 136.6 | 136.7 a 3 a 25 24 24
.| 133.3 | 136.1 | 136.2 2 2 a1 24 23 22
.| 134.1 | 137.9 | 138.1 A 5 a 32 27 3.0
Public administrator . 133.0 | 136.4 | 137.4 0 1.0 7 26 2.6 33
Occupational group
White collar .... vee 133.0 | 136.1 | 136.2 a 4 a 24 24 24
Professional specialty and techrecal .| 132.5 | 195.6 | 135.6 0 4 0 23 23 23
Executive, administratve. and managenal ...| 134.4 | 137.5 | 137.9 2 8 3 26 25 26
Administrative support, nctuding clencal 133.5 | 136.9 | 137.2 2 6 2 24 27 28
Blue collar 132.3 | 135.0 | 135.2 2 6 a 22 22 22
Service 135.6 | 199.4 | 141.0 0 12 41 25 28 40
1 Includes wages, salaries, and employer costs for employee benefits. 4 Includes executive, legislative, judicial, administrative, and regulatory
2 Includes mining, construction, and manufacturing. actiyities of State and local govemments, SIC’s 91 through 96.
3 Includes transportation, communication, and public utilities; wholesale 5 Formerly called hospitals and other services.
and retail trade; finance, insurance, and real estate; service industries; and 6 This series may be discontinued with the September 1998 news

Public administration. release.


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

Mar. June Sep. Dec. Mar. June Sep. Dec. Mar. June
1998 1998 1996 1996 1997 1997 1997 1997 1998 1998

WAGES AND SALARIES-—Continued

Occupational group
135.6 137.0 0.9 07 0.9 0.9 Vw 13 0.9 1.0
130.2 131.3 5 6 7 1.0 8 6 9 8
132.1 133.3 7 1 9 1.0 1.6 7 1.0 a
BENEFIT COSTS
Civilian workers ..... : 141.6 | 142.7 5 6 3 5 5 8B 4 8
State and local government 139.6 | 140.6 4 7 4 3 3 3 8 7
Private industry .... 142.1 143.2 6 6 1 6 5 9 3 8
Industry
Goods producing? .. 141.4 142.3 3 9 oA 6 6 2 3 6
Manufacturing 141.5 142.2 A 3 +3 8 5 A 74 5
Service producing? ... 142.5 | 143.7 8 4 4 6 5 1.4 6 8
Nonmanufacturing .. 142.5 | 143.9 7 5 4 6 5 ww &é 1.0
Occupational group
White collar .. 144.5 145.5, 7 6 4 5 3 14 5 7
Blue collar 139.2 140.3 A 7 a 4 6 2 a 8
Service’ .. 143.4 | 143.7 “A 8 8 9 14 2 11 2
3 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. 8 Estimates for transportation and public utilities reflect the changes in

3 This series may be discontinued with the September 1998 news SIG, coding. See Explanatory Notes for further information.
release. © "No identifiable seasonality was found for this series.
4 Includes transportation, communication, and public utilities; wholesale


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—
3 months ended— 12 months ended—
Industry and occupational group June Mar. dune
1997 1998 1998 June Mar, June June Mar. June
1997 1998 1998 1997 1998 1998
Industry—Continued
Nonmanufacturing industries 132.1 136.0 | 137.2 08 1.0 0.9 3.0 37 3.9
White collar .... 133.6 137.9 | 139.2 7 1.0 a 3.2 3.9 42
Excluding sales 135.1 139.3 | 140.5 8 1.0 9 3.3 4.0 4.0
Blue collar 128.6 | 131.0 | 132.4 9 7 Ww 24 27 3.0
Service 130.5 | 134.9 | 135.7 9 8 6 3.6 43 4.0
Occupational group
White collar 134.1 138.1 139.4 8 1.0 a) 3.2 38 4.0
Excluding 134.8 | 138.8 | 139.9 8 1.0 & 3.1 38 3.8
Professional specialty and technical .. 135.9 138.8 | 140.1 1.0 7 9 25 34 34
Executive, administrative, and managerial 133.9 139.4 | 140.0 7 15 4 4.0 48 46
Sales? 130.7 | 135.3 | 137.3 5 1.3 15 3.0 40 5.0
Administrative support, including .
clerical .. 134.7 | 138.2 | 139.6 7 x) 1.0 3.0 34 3.6
Blue collar 130.8 | 133.1 134.3 9 6 9 25 27 27
Precision produc , Craft, repaii 130.9 | 132.9 | 134.4 1.0 8 WW 25 25 27
Machine operators, assemblers, and
inspectors 131.2 | 133.6 | 134.7 eo) 5 8 2.4 28 27
‘Transportation and material moving .. 126.8 129.3 | 129.9 6 3 5 17 25 24
Handlers, equipment cleaners, helpers, and
laborers .| 183.4 | 137.0 | 137.6 5 3 A 3.2 3.2 34
Service 130.9 | 135.3 | 136.0 8 9 5 3.5 42 3.9
Production and nonsupervisory
occupations$ 132.1 135.3 | 136.6 8 8 1.0 27 3.2 3.4
1 includes wages, salaries, and employer costs for employee benefits. SIG.coding. See Explanatory Notes for further information.
2 Includes mining, construction, and manufacturing. 5 This series has the same industry and occupational coverage as the

This series may be discontinued with the September 1998 news Hourly Earnings Index, which was discontinued in January 1989.

4 ‘Includes transportation, communication, and public utilities; wholesale
and retail trade; finance, insurance, and real estate; and service industries. NOTE: Dashes indicate data not available.
Estimates for transportation and public utilities reflect the changes in


United States iS
; Department Y
of Labor

Bureau of Labor Statistics Washington, D.C. 20212

Technical Contact: USDL-98-321
(202) 606-6199 ocltinfo@bls.gov

Media Contact: TRANSMISSION OF MATERIAL
(202) 606-5902 hoyle_k@bls.gov IN THIS RELEASE IS EMBARGOED

Internet address: UNTIL 8:30 A.M. (EDT),
http://stats.bls.gov/ecthome.htm THURSDAY, JULY 30, 1998

EMPLOYMENT COST INDEX-JUNE 1998

The Employment Cost Index (ECI), not seasonally adjusted, for June 1998 was 137.4 (June 1989=100),
an increase of 3.5 percent from June 1997, the U.S. Department of Labor’s Bureau of Labor Statistics reported
today. The 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, compensation costs for civilian workers (private industry plus state and
local governments) rose 0.9 percent during the March — June 1998 period. Since September 1991, the three-
month increases in compensation costs have ranged from 0.6 percent to 1.0 percent. Wages and salaries
increased 0.9 percent during the March — June 1998 period. The increase was 0.8 percent in the December
1997 ~ March 1998 period. Benefit costs increased 0.8 percent in the March 1998 — June 1998 period, up
from 0.4 percent in the December 1997 — March 1998 period.

Table A. 3-month percent changes in Employment Cost Index, seasonally adjuste:
Sep. Dec. = Mar. June Sep. Dec. Mar. June

Compensation Component 1996 1996 1997 1997 1997 _1997__—:1998 1998
Civilian workers
Compensation costs 0.6 0.7 0.7 0.8 0.8 1.0 0.7 0.9
Wages and salaries 0.7 0.7 0.8 0.9 0.9 1.1 0.8. 0.9
Benefit costs : 0.5 0.6 0.3 0.5 0.5 0.8 0.4 0.8
Private industry
Compensation costs 0.7 0.7 0.6 09 0.8 1.0 0.7 0.9
Wages and salaries 0.7 0.7 0.9 0.9 1.0 1.1 0.8 1.0
Benefit costs 0.6 0.6 0.1 0.6 0.5 0.9 03 0.8
State and local government
Compensation costs 0.6 0.7 0.6 0.5 0.6 0.6 0.8 0.7
Wages and salaries 0.6 0.8 0.6 0.6 0.7 0.8 0.7 0.7
Benefit costs 0.4 0. 0.4 0.3 0.3 0.3 0.8 0.7

Compensation costs for private industry workers increased 0.9 percent during the March — June 1998
period; in March, the increase was 0.7 percent. Wages and salaries rose 1.0 percent in June 1998; in March,
the increase was 0.8 percent. Benefit costs increased 0.8 percent in June; the increase was 0.3 percent in
March. (See tables A and 1.)

NOTE: BLS is evaluating the statistical reliability of ECI series. Some series may be discontinued. (See page
3 for details.)



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—
A. 3 months ended- 12 months ended—
Industry and occupational group June Mar. June
1997 1998 1998 June Mar. June June Mar. June
1997 1998 1998 1997 1998 1998
Private industry workers .... 129.7 133.7 | 134.9 0.9 Ww 0.9 3.3 4.0 4.0
Excluding sales occupations ... 129.9 133.7 | 134.8 1.0 1.0 8 3.3 40 3.8
Industry
Goods producing! 132.0 133.2 11 Ww a 3.0 35 3.3
Excluding sales .. 5. 131.3 | 132.5 1.0 1.0 9 3.0 3.4 3.3
White collar .... 131.4 135.0 | 136.3 Ww 1.6 1.0 3.2 38 3.7
i 133.3 | 134.6 9 1.3 1.0 29 34 3.5
130.1 131.3 1.0 7 a 29 3.3 34
126.0 128.1 1.3 a 17 3.3 3.3 3.6
Manufacturing 130.3 | 133.7 | 134.6 a Ww 7 3.0 3.6 3.3
White collar 131.9 135.6 | 136.8 1.0 15 a 29 38 3.7
Excluding sales 130.5 133.8 | 135.0 9 1.2 a 28 3.5 3.4
Blue collar .. 129.2 132.3 | 133.1 9 8 & 3.0 3.4 3.0
Durables 130.1 133.4 | 134.5 9 41 8&8 28 3.4 3.4
Aircraft manufacturing (SIC 3721) 133.5 135.1 136.9 WW 8 1.3 25 23 25
it .« 131.2 | 133.7 14 Ww 1.9 29 27 3.2
140.1 140.5 8 4 3 1.8 17 1.2
134.2 134.9 1.0 12 5 3.2 3.8 3.3
Service producing? 130.1 134.4 | 135.6 a) 1.0 3 3.4 42 42
Excluding sales 130.9 135.2 | 136.2 a9 1.0 7 3.5 42 40
White collar .... 131.2 135.7 | 137.0 8 1.0 1.0 35 43 44
Excluding sales 132.7 137.3 | 138.4 9 1.0 8 3.6 44 43
Blue collar .. 127.2 130.2 | 131.1 1.0 1.0 7 3.0 3.3 31
Senice ... 132.4 133.0 8 8 7 3.8 44 43
Transportation and public utilities4 128.8 132.1 132.8 5 & 5 3.0 3.0 341
‘Transportation2.4 126.9 130.1 130.4 3 5 2 3.0 28 28
Public utilities 130.9 134.5 | 135.7 6 7 a 3.0 3.4 37
Communications .. 130.6 134.4 | 135.8 6 3 1.0 3.2 3.5 40
Electric, gas, and sanitary services .. 131.2 | 134.7 | 135.6 & 14 7 27 33 3.4
‘Wholesale and retail trade .. 133.3 | 134.6 a 13 1.0 3.9 37 3.8
Excluding sales 131.1 134.7 | 135.6 14 Ww 7 5.0 42 3.4
Wholesale trade? 132.2 136.2 | 137.1 6 19 7 3.3 37 3.7
i 136.5 | 137.8 8&8 Ww 1.0 44 3.6 3.8
Retail trade .. 131.9 | 133.3 Wa 1.0 11 44 3.8 3.7
129.4 | 131.5 1.0 8 1.6 37 35 42
129.0 | 130.5 oA 1.6 1.2 29 34 47
Finance, insurance, and real estate? 125.3 | 132.6 134.8 6 15 17 28 6.5 76
Excluding sales? .. 128.1 135.9 | 137.5 7 17 12 29 68 7.3
Banking, savings an
credit agencies? 126.8 140.9 | 143.2 7 19 1.6 24 11.9 12.9
133.1 134.8 a 22 1.3 3.1 41 5.3
134.7 | 135.7 5 7 7 28 24 26
137.2 | 138.3 3 7 8 3.3 41 40
137.6 | 139.2 8 2 12 37 47 5.1
136.2 | 136.5 5 6 2 24 28 25
133.6 | 134.7 4 3 8 1.6 22 27
- - 4 13 8 3.0 3.3 3.7
139.1 139.6 2 5 4 3.4 34 3.6
Colleges and universities 139.14 139.7 3 3 A 34 33 35

See footnotes at end of table.



11

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—
4 3 months ended~ 12 months ended—
industry and occupational group June Mar. June
1997 1998 1998 June Mar. June June Mar. June
1997 1998 1998 1997 1998 1998
Civilian workers ... 130.1 134.0 | 135.0 07 0.9 07 3.2 3.7 3.8
Excluding sales occupations... 130.2 134.0 134.9 8 a 7 3.2 3.7 3.6
128.9 132.0 | 133.3 1.0 Ww 1.0 3.0 3.4 3.4
130.3 | 133.7 | 134.6 9 Ww a 3.0 3.6 3.3
130.6 134.8 | 135.7 6 9 7 3.2 3.9 3.9
132.9 136.9 | 137.6 7 7 5 34 3.7 3.5
133.1 136.2 | 136.5 5 6 2 24 29 2.6
131.5 134.2 | 135.1 A 4 7 1.8 24 27
132.6 136.3 | 136.5 a 3 a 27 29 29
Public administration3 .. 129.0 132.7 | 133.2 a “1.0 A 3.0 29 3.3
Nonmanufacturing ....... 130.0 | 134.0 | 135.1 7 9 8&8 3.3 38 3.9
Occupational group
White collar 131.5 | 135.6 | 136.7 7 1.0 8 3.3 38 4.0
Excluding 132.0 | 136.1 137.0 8 1.0 7 3.3 3.9 3.8
Professional specialty and technical .. 132.3 | 135.8 | 136.6 7 6 6 27 3.3 3.3
Executive, administrative, and managerial 132.0 | 137.4 | 138.3 8 1.3 7 3.9 49 48
Administrative support, including clerical .. 131.4 | 135.0 | 136.2 8 1.0 a 3.4 35 3.7
Blue collar 130.4 | 131.4 1.0 a 8 29 3.3 3.1
Service 133.7 | 134.5 5 8 6 3.5 4.0 4.0
State and local government .. w-| 131.5 | 135.1 135.4 a 5 2 27 28 3.0
Industry
Services 132.2 | 135.7 | 135.9 a 3 a 2.6 27 28
Excluding schools4 .. 131.6 | 135.4 | 135.5 3 7 a 23 32 3.0
Health services 132.6 | 136.3 | 136.5 4 7 a 24 32 29
it 132.4 136.3 | 136.5 4 8 aj 24 3.3 3.1
132.2 | 135.7 | 135.8 a 3 a 26 27 27
132.3 | 135.8 | 136.0 a 2 a 2.6 27 28
132.6 | 136.0 | 136.1 2 2 a 2.4 27 26
Colleges and universities 131.4 | 135.2 | 135.5 =A 4 2 3.4 28 3.1
Public administration .. 129.0 | 132.7 | 133.2 A 1.0 4 3.0 29 3.3
Occupational group
White collar 131.5 | 135.0 | 135.2 1 4 a 26 27 28
Professional specialty and technical .. 132.0 | 135.5 | 135.6 1 3 a 26 27 27
Executive, administrative, and managerial 131.7 | 135.1 135.6 3 7 4 29 29 3.0
Administrative support, including clerical .. 129.5 | 133.0 | 133.3 2 5 2 27 29 29
Blue collar . 129.8 | 133.1 133.5 2 6 3 2.2 27 29
Service .... 132.4 | 136.5 | 137.2 0 1.0 5 3.0 3.4 3.6
7 Includes mining, construction, and manufacturing. activities of State and local governments, SIC's 91 through 96.
2 Includes transportation, communication, and public utilities; wholesale 4 Formerly called hospitals and other services.
and retail trade; finance, insurance, and real estate; service industries; and 5 This series may be discontinued with the September 1998 news
public administration. release.

3 includes executive, legislative, judicial, administrative, and regulatory


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—
, 3 months ended- 12 months ended—
Industry and occupational group June Mar. June
1997 | 1998 | 1998 | June Mar. June | June Mar. June
1997 1998 1998 1997 1998 1998
Private industry workers ....... 132.8 | 136.3 | 137.5 0.8 09 0.9 29 35 3.5
Excluding sales occupations... 133.0 | 136.4 | 137.5 8 9 8 29 3.4 3.4
Industry
132.7 | 135.1 136.2 1.0 7 8 26 28 26
132.3 | 134.5 | 135.6 x) 7 8&8 26 2.6 25
134.8 | 137.7 | 138.8 1.0 1 8&8 2.9 3.1 3.0
133.8 136.3 | 137.4 9 1.0 8 28 28 27
131.4 | 133.5 | 134.6 a) 5 8 24 25 24
128.7 | 130.6 | 132.7 1.2 7 1.6 27 27 34
133.8 136.4 | 137.2 9 8 6 26 29 25
135.2 | 138.2 | 139.1 1.0 aml 7 27 3.2 2.9
133.8 | 136.5 | 137.3 8&8 9 6 25 28 2.6
132.8 | 135.0 | 135.9 8 5 7 25 25 2.3
134.1 136.5 | 137.4 8 6 7 22 26 25
138.4 | 137.2 | 138.9 8 2 1.2 a 1 4
134.9 | 134.7 | 137.1 1.0 3 1.8 7 9a 1.6
142.8 139.6 | 140.1 4 0 4 9 19 1.9
Nondurables. 133.0 | 135.9 | 136.7 1.0 1.0 6 3.2 32 28
Service producing+ 132.5 | 136.7 | 137.8 7 1.0 8 3.0 3.9 4.0
137.4 | 138.5 8 1.0 8 3.2 3.9 3.9
138.0 | 139.3 8 1.0 eS) 3.2 4.0 42
139.5 | 140.6 8 1.0 8&8 3.2 41 41
132.1 133.2 8 9 8 25 3.0 3.1
135.0 | 135.8 8 8 6 3.6 42 4.0
135.8 | 137.1 3 12 1.0 2.6 34 41
134.0 | 134.9 2 A 7 25 26 34
137.9 | 139.7 4 24 1.3 26 45 5.4
136.6 | 139.2 2 19 19 2.4 49 6.7
Electric, gas, and sanitary services 134.9 | 139.6 | 140.3 5 23 5 29 40 4.0
Wholesale and retail trade .. 134.7 | 135.8 8 14 8 3.8 35 3.5
Excluding sales 135.5 | 136.3 12 Ww 6 44 3.9 3.3
Wholesale trade? 137.7 | 138.6 7 19 7 3.5 3.6 3.6
Excluding sales? 137.0 | 138.2 8 | 12 x) 39 33 3.4
Retail trade ...... . 133.1 134.4 a Ww 1.0 3.9 3.6 3.6
General merchandise store: 127.7 | 131.2 | 133.0 1.0 39 14 3.3 3.8 42
Food stores’ .... 128.2 | 131.3 | 132.9 0 15 12 34 24 37
Finance, insurance, and real estate? 129.4 | 136.7 | 138.4 6 1.6 1.2 25 6.3 7.0
Excluding sales’ ..... 132.4 | 140.2 | 141.3 7 19 8 3.0 6.6 6.7
Banking, savings and loan, and other

credit agencies3 131.6 143.3 | 145.3 8 19 1.4 27 9.7 10.4
Insurance ... 132.1 137.4 | 138.9 2 19 Ww 3.0 42 51
Excluding sales3 136.6 | 140.0 | 140.9 4 1.0 6 29 29 341
Services .... 135.7 | 139.3 | 140.3 8 6 7 3.0 3.5 3.4
Business services3 134.2 | 139.5 | 140.7 7 6 9 3.9 47 48
Health services 135.9 | 138.2 | 138.7 3 a A 18 2.0 24
Hospitals .. 134.4 | 136.7 | 138.2 3 A 11 1.2 2.0 28
Nursing homes - - - 5 8 8&8 23 27 3.0
Educational services 138.8 143.4 | 143.9 2 6 3 3.0 35 37
Colleges and universitie: 139.9 144.3 | 144.8 3 4 3 27 34 3.5

‘See footnotes at end of table.


Employment Cost Index

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

Wages & salaries Benefits

12-month percent change

4b §

‘
Pay
'

FPPOT EPO ERS POYS SPOT ETE FOOT EYOTEVEY FYE ETT TE FTO FETE FeSO ATTY TT

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

Seasonally adjusted Not seasonally adjusted

3-month percent change

15

0.5

bal OPT PPO PPT FPN FOS FPS POD POTD PTT PO PPS POPPE ESET eT FO FTE

80 . 82. 84. 86. 88. 90.92.94. 96. 98

° —
EPTPY TTY PUVPT TITY

80 . 82. 84. 86. 88.90.92. 94.96. 98

Chart C. Changes in compensation by
occupational group, private industry,
goods-producing industries

White-collar Blue-collar

12-month percent change
6r

Chart D. Changes in compensation by
occupational group, private industry,
service-producing industries

White-collar Blue-collar

12-month percent change

Bureau of Labor Statistics, Office of Compensation Levels and Trends

July 1998 ocltinfo@bls.gov 202.606.6199



15

Table 8. Employment Cost Index for benefits for civilian, State and local government, and private industry
workers by industry, occupational group, and bargaining status

(Not seasonally adjusted data)
Indexes (June 1989=100) Percent changes for—
Industry, occupational group, and 3 months ended— 12 months ended
bargaining status June Mar. June
1997 1998 1998 June Mar. June June Mar. June
1997 1998 1998 1997 1998 1998
Civilian workers .... 139.6 | 142.0 | 143.0 05 0.6 0.7 2.0 22 24
State and local government 137.4 | 139.7 | 140.3 0 8 4 17 17 24
Private industry .. 140.1 142.6 | 143.7 5 6 8 2.0 23 26
Industry
Goods producing? 140.9 | 141.5 | 142.5 7 0 7 17 1 WA
Service producing? 139.2 | 142.7 | 143.8 5 9 8 22 3.0 3.3
Manufacturing ... 141.0 | 141.7 | 142.4 8 0 5 1.8 13 1.0
Aircraft manufacturing (SIC 3721) 148.8 | 141.7 | 143.1 a “9 1.0 4.2 46 3.8
White collar3 147.3 | 142.9 | 145.0 3 13 15 -3.7 2.7 1.6
Blue collar 150.4 | 139.0 | 139.5 3 “4 4 5.1 79 72
Nonmanufacturing 139.5 142.7 143.9 4 8 8 2.0 27 3.2
Occupational group
White collar 141.5 | 144.7 | 145.6 5 9 6 22 28 29
Blue collar .. 138.0 139.1 140.4 6 A 3 1.4 1.4 17
Service’ .. 139.6 | 143.3 | 143.7 9 9 3 2.4 3.6 29
Bargaining status
Union . 140.9 | 142.1 143.8 5 a 12 6 14 21
Nonunion 139.7 | 1425 | 143.4 & 7 6 23 26 26
1 includes mining, construction, and manufacturing. industries.
2 includes transportation, communication, and public _utilties; 3 This series may be discontinued with the September 1998 news
wholesale and retail trade; finance, insurance, and real estate; and service —_ release.


7

"Estimation procedures for the Employment Cost Index," in the May 1982 issue of the Monthly Labor
Review.

Beginning with the March 1990 ECI 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 ECI 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 spot. 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 aggregating the component seasonally adjusted industry series,
so they are not necessarily a weighted average of the component occupation 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 factors are published in the summer issue of Compensation and Working Conditions.
Beginning in 1999, the new factors will be made available upon request shortly before the data for the March
reference period are published. .

The ECI sample is rotated over approximately five years; this makes it more representative and reduces
respondent burden. The sample is replaced on a cross-area, cross-industry basis.

The costs per hour worked of compensation components, based on March 1998 data from the ECI, are
published in a separate news release titled "Employer Costs for Employee Compensation - March 1998." A
description of the cost levels is provided in the article "Analyzing employers’ costs for wages, salaries, and
benefits" in the October 1987 issue of the Monthly Labor Review. The cost levels, which are published
annually, with March as the reference month, 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 will 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
this difference would be less than 1.6 times the standard error. All 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.

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 in several sources. These include an annual bulletin,
Employment Cost Indexes and Levels, 1975-95, (Bulletin 2466); a chapter in the BLS Handbook of Methods
(Bulletin 2490), “National Compensation Measures," and several articles published in the Monthly Labor
Review and Compensation and Working Conditions. An updated bulletin, Employment Cost Index, 1975-97,


State and local government

In state and local governments, the June 1998 over-the-year increase in wages and salaries was less than
in private industry. The June 1998 over-the-year increase was 3.0 percent; in June 1997, the increase was 2.7
percent. Benefit costs for June 1998 increased 2.1 percent over-the-year. In June 1997, the increase was 1.7
percent. (See tables B, 5, and 8.)

NOTES:

The ECI for September 1998 is scheduled to be released Thursday, October 29, 1998, at 8:30 A.M.
(EST).

The Bureau is evaluating published ECI series to ensure that they meet statistical standards for
reliability. Preliminary research has targeted 37 series for elimination from the news release. These series are
marked with a footnote in the accompanying tables. Series that fail reliability standards will be removed from
the news release beginning in September 1998 and will be available only upon request.

ECI data, as well as other data produced by BLS, are available on the World Wide Web. The ECI home
page address is: http://stats.bls.gov/ecthome.htm The BLS home page address is: http://stats.bls.gov 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

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

Compensation costs for state and local government workers increased 0.7 percent during the March —
June 1998 period, following a gain of 0.8 percent in the March period. Wages and salaries increased 0.7
percent in June, the same as in the March period. Benefits increased 0.7 percent in the June quarter; in the
previous quarter, the increase was 0.8 percent. (See tables A and 1.)

Over-the-year changes. not seasonally adjusted

Compensation costs for civilian workers (not seasonally adjusted) were up 3.5 percent for the year ended
June 1998. This compares with increases of 2.8 percent in June 1997 and 2.9 percent in June 1996.
Compensation costs in private industry rose 3.5 percent in June 1998, up from 2.9 percent in both June 1997
and June 1996. Compensation costs for state and local governments increased 2.7 percent for the year ended
in June 1998. The gain for the year ended in June 1997 was 2.4 percent, and, in June 1996, the increase was
2.6 percent. (See tables B, 2, and 3.)

Private industry

In private industry, wages and salaries rose 4.0 percent for the year ended June 1998. Wages and
salaries increased 3.3 percent in June 1997. (See tables B and 6.) Benefit costs for private industry workers
increased 2.6 percent for the year ended in June 1998, compared with 2.0 percent in June 1997. The over-the-
year increase in June 1998 was due, in part, to increases in employer costs for Social Security, paid leave
benefits, and health benefits. (See chart A and tables B and 8.)

In private industry, over-the-year compensation cost increases were 4.0 percent for white-collar
occupations, 2.7 percent for blue-collar occupations, and 3.9 percent for service occupations. Among the
occupational groups, increases ranged from 2.4 percent for transportation and material moving occupations to
5.0 percent for sales occupations. (See table 3.)

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

Compensation Component 1993 1994 1995 1996 1997 1998
Civilian workers
Compensation costs 3.6 3.2 2.9 2.9. 2.8 3.5
Wages and salaries 2.8 3.0 3.0 3.2 3.2 3.8
Benefit costs 5.5 3.8 27 18 2.0 24
Private industry
Compensation costs 3.6 3.4 28 2.9 2.9 3.5
Wages and salaries 2.7 3.1 29 3.4 3.3 4.0
Benefit costs 5.8 3.9 2.6 17 ‘2.0 2.6
State and local government
Compensation costs 3.4 2.9 3.1 2.6 24 27
Wages and salaries 2.8 2.8 3.2 28 2.7 3.0
Benefit costs 44 3.2 2.9 22 17 21

Private industry compensation costs increased more rapidly in service-producing industries (4.0 percent)
than in goods-producing industries (2.6 percent) for the year ended June 1998. Compensation costs had risen
3.0 percent in service-producing industries and 2.6 percent in goods-producing industries in the prior year.
Among industry divisions, June 1997-to-June 1998 increases ranged from 2.5 percent in manufacturing to 7.0
percent in finance, insurance, and real estate. (See table 3.)

The 3.8 percent over-the-year increase in compensation costs for nonunion workers in private industry
outpaced the 2.7 percent increase for union workers. The pattern was similar for service-producing industries
where nonunion compensation increased 4.2 percent and union compensation increased 2.9 percent. For
goods-producing industries, the increase for nonunion workers was 2.8 percent and for union workers was 2.4
percent. Compensation in blue-collar occupations increased 2.7 percent for nonunion workers and 2.6 percent
for union workers. (See table 4.)


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 June | Mar. | June
1997 1998 1998 June Mar. June June Mar. June
1997 1998 1998 1997 1998 1998
Industry-Continued
Nonmanufacturin: i 129.3 | 133.4 | 134.7 0.9 1.0 1.0 3.4 41 42
it 131.0 | 135.5 | 136.8 8&8 1.0 1.0 3.5 43 44
132.4 | 136.9 138.1 9 1.0 9 3.6 43 43
125.5 | 128.2 129.5 V1 9 1.0 29 3.3 3.2
127.4 | 132.0 | 132.9 8 8 7 38 44 43
131.3 | 135.7 | 137.0 8 11 1.0 34 42 43
132.0 | 136.3 ] 137.5 9 11 9 34 42 42
132.4 | 135.9 | 137.1 V4 8 a 28 37 3.5
132.1 137.8 | 138.7 8 15 7 42 5.2 5.0
128.3 | 133.1 135.2 4 13 1.6 3.4 44 5.4
131.7 | 135.3 | 136.7 & 1.0 1.0 3.5 3.6 3.8
Blue collar .... 127.3 | 130.2 | 131.3 1.0 9 8 29 3.3 3.1
Precision prod 127.4 | 129.8 | 131.2 1.3 Q 1.4 3.0 3.2 3.0
Machine operators, assemblers, and
inspectors ... 128.5 | 131.6 | 132.7 1.0 8 8 3.2 3.5 3.3
Transportation and material moving .. 123.0 | 125.9 | 126.4 6 6 4 2.0 29 28
Handlers, equipment cleaners, helpers, and
129.3 | 133.2 | 133.7 7 Wa 4 34 37 34
127.6 132.1 133.0 8&8 8 7 37 43 42
Production and nonsupervisory
occupations> 128.8 | 1323 | 133.6 9 8 1.0 34 3.6 37
3 Includes mining, construction, and manufacturing. SIG coding. See Explanatory Notes for further information.
2 This series may be discontinued with the "September 1998 news 5 This series has the same industry and occupational coverage as the

release. Hourly Earnings Index, which was discontinued in January 1989.
Includes transportation, communication, and public utilities; wholesale
and retail trade; finance, insurance, and real estate; and service industries.

Estimates for transportation and public utilities reflect the changes in 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 thie
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 EC] 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, nonproduction bonuses, and 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; legally required benefits--social security,
Federal and State unemployment insurance, and workers’ compensation; and other benefits--severance pay and
supplemental unemployment plans.

The ECI provides data for the civilian economy, which includes the total private economy and the public
sector--excluding farms, 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 18,800 occupations
within about 4,500 sample establishments in private industry and approximately 4,200 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 sample establishments are classified in 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). The SIC definition for 4513 includes
support establishments; thus, these establishments were reclassified. While they were engaged in the delivery
of letters, parcels, and packages, they were also 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
definitions. 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. Beginning with March 1995,
the jobs are classified according to the 1990 Census, which differs little from the 1980 Census.

Fixed employment weights are used each quarter to calculate the most aggregate indexes--civilian,
private, and State and local governments. These fixed weights are also used to derive all of the industry and
occupation series indexes. Beginning in March 1995, 1990 employment counts, primarily from the Bureau's
Occupational Employment Statistics survey, were used. A description of the reweighting is included in an
article "Introducing 1990 Weights for the Employment Cost Index," published in the June 1995 issue of
Compensation and Working Conditions, and available upon request. From June 1986 through December
1994, employment counts from the 1980 Census were used as weights. Prior to June 1986, employment
counts from the 1970 Census were used.

For the series based on bargaining status, region, or area size, employment counts are not available.
Thus, 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,