ECI cumulative quarterly percent changes,
September 1975—December 1978

Occupational group 1 f
All workers ‘ H PERCENT
- White-collar workers 1 1 435
. Blue—collar workers | H 4 30
Service workers 1 '
i i ' | 48
1 ' ' > 20
i 1 '
! ' ! 715
H { — 10
Lot 1
aw ' 75
- ‘ 7 — 0
Industria! category \
All private nonfarm !
- Manufacturing 1 535
- Nonmanu facturing ! | 30
f t
| | 2s
H H + 20
' t 15
H ' 1
A i | 10
H ' 45
: oe es
Union status '
Union occupations !
wero Non—union Cecupati ons H 735
. i
! + 30
H 7 25
' > 20
H 715
i = 10
t 45
} —-— 0
Regions t
Northeast 1
. North Central 78
+ Nor’ entra 4
West ' 30
i a 25
| | [4%
' ' 15
| [ape
\ ' 45
+ + — 90
1 1 1 J 1 l

1975 1976 1977 1978


Rate of wage and salary changes in Employment Cost Index

(Percent changes)

Series 3 months ended 12 months ended

yeceaber-Warch ] June] Septenber | Decenber [| March” | June | September December
1977 1978 1978 1978 1978 1978 |. 1978 1978 1978

ALL private nonfarm workers ssssseeeseree 1.7 1.9 2 2.0 1S 15 7.8 8.0 WT

Workers, by occupational group

White-collar workers ssssesseeeeeereeee 1.8 1.8 2a 1.9 1.2 TL 7.6 7.8 7.2
Professional and technical
WOEKELS seseeeeeee
Managers and administrators «++
Sales Workers s.seceeeeseseneeees

Clerical workers -.++++0e+

Blue-collar workers sesssseeseseesseeee | 168
craft and kindred workers v.sseeeeeee | 147
Operatives, except transport ....++++ | 2.2

1.0
1s

‘Transport equipment operatives «+..++
Nonfarm laborers «+

Service Workers ssseeeceeeeseeeeeeenees 1.0 3.6 1.9 2.3 0.6 8.7 8.4 9.1 8.7

Workers, by industry division

Manufacturing ssseeeeessenseeeeeenneees 1.8 2.0 1.6 1.8 27 8.0 7.8 Toh 8.3
Durables sesereeeecereeseeerererenees 2.0 1.8 17 1.9 2.7 7.8 7.9 7.66 8.4
Nondurables ..+.++++ seceeeeees 1.5 23 1.5 1.6 25 8.3 7.6 7 8.2

Nonmanufacturing ..+.+++
Construction sesserees
Transportation and public

UtLLities...sseeeee 21 1.4 2.1 2.0 1.9
Wholesale and retail trade ...+- 1.5 341 2.7 1.2 12
Wholesale trade wees 2.6 2.5 1.8 LL 2.0
1a 3.3 3.1 1,2 0.8

0.7 1.7 17 24 0.7

Retail trade .. setneeee
Services .

Workers, by region

Northeast ..s.+++ 1.
South .. 1
North Central . tees 2.

1

West seeeseeeeeees seeeeeneece

+ Workers, by bargaining status

Union ...+e.ees
Manufacturing ..-s+eseseeeeeeeees
Nonmanufacturing s.seesessesereeerere

Nonunlon sesesereseeeeeee seen 1.6 2.2 2.2
Manufacturing s+seeeeeeeeeeeeeeseree 15 2.2 1.6
Nonmanufacturing ++++esseseeeeeseees 1.6 2.1 2.5

Workers, by area

Metropolitan areas ssssseeseseenseee
Other areas sseeeeeseeeeeeeeers

* Not ‘available


United States
News “= ®
of Labor

Bureau of Labor Statistics Washington, D.C. 20212

USDL: 79 - 147

R. Yeast (202) 523-1921 or 523-1165 FOR RELEASE: 10:00 A.M. E.S.T.
K.D. Hoyle (202) 523-1913 Wednesday, February 28, 1979
Home: 333-1384

EMPLOYMENT COST INDEX--DECEMBER 1978

Wage and salary rates measured by the Employment Cost Index (ECI) rose 1.5 percent for the
3 months ended in December 1978, the Bureau of Labor Statistics of the U.S. Department of Labor
reported today. Because the ECI is a relatively new statistical series, the data are not
seasonally adjusted. The 1.5 percent fourth quarter increase compares with a 1.7 percent
increase in the same quarter a year earlier. The wage and salary rise was 7.7 percent for the
12 months ended in December 1978.

The Employment Cost Index measures changes in straight-time average hourly earnings.
These changes represent wage and salary decisions made during the period measured, such as
negotiated settlements and other pay changes, as well as changes resulting from past decisions
such as deferred wage increases and cost-of-living escalators. The ECI currently measures only
changes in wages and salaries. With the inclusion of employee benefit costs in 1980, the series
will also measure total compensation changes.

September 1978-December 1978

Increases in the rate of pay in construction, retail trade, and service industries were
well below the national average. The fourth quarter increase in manufacturing led all other
industry sectors.

The relatively smaller 1.1 percent increase in construction reflects the seasonal
pattern of collective bargaining which concentrates settlements and deferred pay increases
in the spring and summer. Earnings for workers in service industries went up 0.7 percent,
following a pattern of smaller fourth quarter increases over the past 3 years. ‘The smaller
pay increases in construction and services, combined with a decline in earnings in finance,

insurance, and real estate, held down the rate of increase in nonmanufacturing te 0.8 percent


Pay gains for workers in manufacturing plants--up 2.7 percent--were distributed relative-
ly uniformly between durable and nondurable industries--up 2.7 and 2.5 percent, respectively--
and among union and nonynion workers--up 2.7 and 2.6 percent, respectively.

Pay for white-collar workers as a group rose 1.2 percent. The rate of pay for sales workers
was virtually unchanged during the fourth quarter, following consecutive quarters of substantial
gains. Among other white-collar groups, pay increases were smallest for clerical workers--

1.3 percent. The sales worker group--where pay is most heavily influenced by commission
earnings, particularly for stock brokers, which fluctuate with the volume of sales--tends to
show the most volatile changes among ECI occupational series. The ECI is computed from wage and
salary rates, where available, or straight-time average hourly earnings for workers paid under
incentive or commission pay systems. The average hourly earnings are affected by fluctuations
in the volume of output and sales, as well as changes in the rate structure.

Pay increases were 1.9 percent for blue-collar workers and 0.6 percent for service workers.
Pay for workers covered by collective bargaining agreements advanced at a faster rate than for
workers not covered by agreements. Workers in the Northeast recorded the largest regional pay
gains. Pay for workers in metropolitan areas rose 1.6 percent compared with 1.3 percent in

other areas.

December 197

ecember 1978

Over the 12 months ended in September 1978, service workers' pay increases (8.7 percent)
outpaced those for blue-collar (8.2 percent) and white-collar workers (7.2 percent); and pay
gains in manufacturing (8.3 percent) were above those in nonmanufacturing (7.4 percent). Pay for
union workers also advanced at a faster rate than for nonunion workers, 8.0 compared with
7.6 percent. Regionally, pay gains ranged from 6.9 percent in the North Central to 9.3 percent
in the South. Workers in nonmetropolitan areas had a higher rate of increase (9.0 percent) than

those in metropolitan areas (7.5 percent).


-3-

Explanatory Note

Statistics presented in the following table and chart are percent changes in straight-time
average hourly earnings over the period indicated. The statistics are not annualized, nor are
they adjusted for seasonal influences. For example, the 1.5 percent change, shown in the table,
for the "ali private nonfarm workers" series in the fourth quarter of 1978 is the actual percent
change in straight-time average hourly earnings from the pay period including the 12th day of
the survey month of September 1978 to the comparable pay period in December 1978. The 28.1 per-
cent change, shown in the chart, for the "manufacturing" series is the cumulative quarterly
percent change in straight-time average hourly earnings from the pay period including the
12th day of the survey month of September 1975 to the comparable pay period in December 1978.
The computation of percent changes spanning more than one survey period is accomplished by
compounding successive. changes for individual quarters. In actual practice, the compounding
calculations are made to the fifth decimal place.

The "union" series includes those occupations covered by collective bargaining agreements.
The "nonunion" series includes occupations not covered. Beginning with the September 1978
quarter, wage and salary data for Alaska and Hawaii are included in the ECI.

A description of the survey design is provided in the chapter on the Employment Cost
Index in the BLS Handbook of Methods, BLS Bulletin 1910. A general description of the

Employment Cost Index is available upon request.