*szayJ0M pToyssnoy pue wey .sapntoxg /T 1

9°9 0°8 z°6 s°T oT 8's O°9TT €cvtt 8°80T sort ts ees ss 8 seoTArag
Lg s°9 7°8 ST a4 wT 9°OIT 0°60T L°€or sw tos sos es ss 928389 Tear
pue ‘eoueansuy ‘aoueuTy H
vy Ivy o°s OT 9° isa z°L01 T°90T o°€eoT votes ss ss apesz [Tey
as ran) ork 8°T Le Be Sri 8°60T €°90T ss sos sss aper} eTeseTouM
aad 8°y 8's rans “Le oT s°80T 7° LOL 6°€OT * * opei} [}eIe1 pur sTesoTOUM
8°9 rae zs or ST 0% 6°2IT Tut L°SOT sore esos soe es seTdTTyan H
oFiqnd pue uotieziodsuesy,
ae as s°s 9° 9° ST 7° OIT L°60T 6°SOT sof ss es es 8 woFINIAZSsUOD
Bs s°9 0°s ans el O77 o°zit: S*OIT 6°SOT sofos os sos ss BuzingoegnueMuON,
€°s B°s “ek ovr 9° Tt? 6°OIT T°60T €°SOT shots ss soe ss sat qeanpuon
sy ors 98 “ raat Lt T1lt e°Orl €°90T cost tts ss sss satqeang
Be 9°s cs Vt 6° 8°T O°1IT 8°60T 6°SOT softs sss ses Bupingoegnue_
. UoTSTATp Azysnpuy X4q “siey10M
B°S S°8 ork e°l oT 6r€ 6°21T a TIT L°90T sof ss ss soe s SrayIOm edTAIIg
Ly aed 8°9 sas ran 8° 0°60T 8° LOT » T°90T ss toss ss sreroqet waezuoN .
“ey T'y 9°9 oT 8° s° 0°80T 6°90T c°€01 *saatiesedo quewdtnbe zz0dsuezy,
ao o°s BL 9° 6° rans O°OIT €°60T 9°SOT * tzr0dsuez3z ydeoxe ‘seaTieredg
org 9°9 9°8 6° S*T Bl raraal rit Z°90T * * * siexl0m perpuTy pue IFeI)
ors ors ork 6° Ud wT L°Ort L°60T ¥°SOT stot ss ss sreyrom TeTToo-entg
0°9 Teh S°8 oT cans Le yell O°TIT O° oT srs ss ss sieytOm TROTIETO
ne ay a9 S*= oT e° L£°SOT t°90T 2°2or sf ee es 8 ss sraytOM sates
6°S £°9 ek cord “ 6% O°zIT €°60T 8°SOT * + saojei3sTuTUpe pue sieseuey
€°9 ork o°oT “i O°1 ara Breit raee 0°80T sss tes ss ees Bray TOR
[eopuyoe} pue [eucTssezoIa
oS "9 e's aT Tt card rarans 9°OIT 2°901 sss fos 8 seyIOM ABT TOO~eITYM
. Jeuopsednoso Aq. “Sro4I0N
as eo T's rang rans os O°TIt €or 6°SOT sts + + /T saeyzom Aaysnpuy ezeatia
€86T 786T 786T €86t 786T 7e6t €86T 786T c86t . .
yprey | *99q ypaey yorey | +90 yprey wsey +38 waey .
Pepue syyuom ZT pape sy3uou ¢ soTz23
Joy sasueyo yueoIed (OOT=1861 ounf) SexepuT

(peasnfpe ATTeuosess ON) i

dnoz kazsnpuy pue woyzednov0 hq /T ‘szeyz0m <aysnpuy ezeatad ‘ATUO soTseTeSs pue seBem J0j xepul ys07 yusmotdmg “¢ eTaeL

SATUVTVS ONY SHOVM



EXPLANATORY NOTE

The Employment Cost Index (ECI) is a quarterly measure of the change in the
price of labor, free from the influence of employment shifts among occupat ions and
industries. The ECI wage and salary series is limited to changes in wage and
salary rates, defined as straight-time average hourly earnings. Straight-time
earnings are total earnings before payroll deductions, excluding premium pay for
overtime, work on weekends. and holidays, and shift differentials. Production
bonuses, incentive earnings, commission payments, and cost-of~living adjustments
are included in straight-time earnings, whereas nonproduction bonuses (such as
Christmas or year-end bonuses) are excluded. Also excluded are such items as
payments~in-kind, free room and board, and tips.

The compensation series includes employer costs for employee benefits as
well as wages and salaries. Benefits covered by the ECI include:

Hours related benefits - Premium pay for overtime
and work on weekends and holidays, paid vacations,
paid holidays, paid sick leave, and other paid leave;

Supplemental pay - Shift differentials, nonproduction
bonuses, severance pay, and supplemental unemployment
plans;

Insurance benefits - Life, health, and sickness and
accident insurance; .

Retirement and savings benefits - Pension and other
retirement plans and savings and thrift plans;

Legally required benefits ~ Social security, rail-

road retirement and supplemental retirement, railroad a
unemployment insurance, Federal and State unemployment aa
insurance, workers' compensation, and other legally

required benefits such as State temporary disability ;
* insurance; and Be

Other benefits - Merchandise discounts in department
stores.

The ECI collects data for both the private and public sectors, which are
published separately and also combined as the total civilian economy. The private
sector includes the total private economy, excluding farms and households. The
public sector covers State and local governments, but excludes the Federal
government.

Each quarter, straight-time average hourly earnings and benefit cost .
data (cents—per-hour-worked) are collected from a probability sample of about
10,000 occupations within 2,000 sample establishments in the private sector and
about 3,700 occupations within 750 sample establishments in State and local

governments.
‘

Occupations were classified according to definitions used in the 1970


seoTAIOS YITREY pur ‘TeTOOS ‘KavIqTT ‘eTdwexe Joy ‘sepnTouT
*saey10M poyssnoy pue Wey sepntoxg

satqetTeae jou eleEq

Ish

ssopqqaTzoe AzoqetnBer pue ‘aaTzeaasTuyupe ‘TeTOTpNf ‘eaTIe{STZeT yo systsuog /Z
‘saeyz0n JuowureAc8 Terepey pue ‘pToyasnoy ‘we; sepntoxe pue s30%I0% JEUUAeAcs [vOOT PuL eIeIg pue AsIsnpUT orvATad SepNToUT « /T

9°9 L°9 - 8'T 9° ort oteTt greit scot | ttt tlt tt t/@ voraexastutupe ortang
iw TL - v1 s° at stort erytt g*so1 | * * * /% Seotazas Jeyj0 pue sTeITdsoH
£79 “9 - y zw “ orsit T'STT L'80t | * °° + * Saepuooes pur Arequeuetg
$9 9 7 3° e re zeit ott esor foot ttt tt tt © stoouss
9 9 : 3 - i Cert orytt peor | cotter e se + + saoTazeg
woTsTaTp Azasnput hq ‘szax704
9's z"9 - rane cm e't €relt rans stor | ttt tt tt tt ¢ saeyzom zeTToD-enTg
s'9 99 - 6 ” ° 9rstt oryIt sgor | ‘ot tt tt tt Saeyzom aeTToo+eI TUM
dnozZ TeuoTaednos0 kq ‘s12y70%
79 s*9 - o'r it T*stt Orit zgot | °° ° * saeyxom quemuzeac’ YeooT pue e3e3g
8's S79 o's ot etl 0'% orzit S*OIT ersot fp wt tt ttt tt tt Suramaoegnuemuoy
8'y 9°s 28 I'l e tT O'TIT 8°60T esol | vt tt ttt ttt Sutangoeznuey
uoTsTaTp Arasnput fq ‘srayI0N,
8's S's ork ant o'r ere Crass yTtt Lo | ttt ttt tt tt saeyzos eoTazes
o's ors 6rd 6 vt a1 L‘O1t L760t ysoT | ttt ttt tt tt sxeyzom aeTToo-enTE
ors "9 es oT ut tard watt 9-ort woot | co tt tt tt saeyzom aeTToo—23 TUM
dno38 TeuoTzedn9s0 kq ‘sIayION
as "9 18 can fant 0'@ Orit eOTT esor | 7 ttt tt tt /€ szeyzom kzasnpuT oaeaTsza
9°9 £9 - eT o° 61 grit rags soot | 1° + + * t/% woraezastutmpe oTtana
9°9 ek - wt Ut e'T 8°StT oatt ggor fcc c ct ttt ttt saotazes
g's stg - el UT 6'T “zt elt soot | ct tt tt ttt tt Sutangoeznuewuoy
89 ors - U1 6° eT Or1tt 8*60T esol f tt ttt tt * Sutanzoeznueq
uorstaTp kaasnpuy £q ‘8204704
0°9 ok - el stl ve zrert slit sor | cc tt tt ttt sxeyz0n eotazes
ors 9°s - 6 Ut aT g°oIt 8760T stsor f 7 ott tot tt tt Szaqz0m aeTTOD~enTg
6's 99 - wT e o'T o*ert yrTIt “got | to tt tt tt * szeqz0a aeTTOO~|3TUN
dnoa8 qeuotaednos0 kq ‘s1eyI0H4
ars zo - ant V1 cial raraad 6°0IT eroor J tt tt ttt tt tt FE saeysom uetTTTATS
€86T ze6r 7861 €86T Zeer 7861 e861 7861 2861
yorey ted yoaey yosey | +90q yoaeq yoaey *0q yore
papas sysuou zy papus sysuouw ¢ seqaeg

Foy SoBuvys qusoied

COor=1861_eunr) sexopur

(paisntpe AT{euosess 30N)

dnox8 Kaysnpuy pue uoqyednov0 kq *h[uo seTaeTes pue seem 30; xepul 3809 JuoudoTdug +7 eTAPL

SaTUVIVS UNV SZOVA


*saqses Aaysnpuy pue ‘uotzedns20 ‘aqze8e138e ayy IOJ BsSoy? 03 eTqeaedulod ATIOTIIS

*aqou AzoqyeuetTdxe eg

jou ase saTjas asey} JO} sexepuyT eUL taLON

satqetzeae jou eieqg —

*papntoxe ere siay10M pToyssnoy pue

waeg *(s37Jeueq sehoydue toy s}sod JekoTdue pue ‘seTieTes ‘gedem) $380 uoTIeSUaduos [e}02 UT ge8ueYD SeinsvaW xepUT SY] aa
ey” L°s €°8 oT s° o°% sort T°601 7°90T sor sos sos ss seere 79430
89 s°9 Lek srr aT S*T 6°?IT 6°OIT L°sor sos + seeae uvittodorqey”
ez1s Baie sq “siayqi0M
19 29 - stl aT oT 9*TIT 6601 z°SOT soso + Butanzoe jnueWUON
e's S°S 7 eT Lt a4 ert c°60T L°sor soos soe * BuTanqoejnuE_
6°S 0°79 ord ovr Tl Ll S*tit £°60T €°sot sot os eos sos ss uoTUnUON
ork aL - 61 OT LT 6°vIT caraas 8°90T tosor os) BuTaNzoe FNUeWUON
roan 6°9 - O°? aT oT O°vIT S°1Il €°90T tososoe ss Bupangoeznuey
Gtk ck T°6 0°? S*T OT S*vIT €°2it S*90T sors sos os ss uoTun
Snjeqys Supuyesseq Aq “SIeyIOM
e861 786T 7861 €86T C861 Z86T €86T C8OT C861
yorey "20d yore yoreyw *99¢ yorew youey "o0q yorey
pepuse syzuowl ZT pepue sy zuOU ¢ . setias
Joz sesueyo Juedieg (OOT=186T FUN) Sexepuy

(persnfpe ATTeuosess JON)

ft eztTs eerie pue snjeis ZuyuTesseq Aq ‘s19y%I70M Azysnpuy ezeatad ‘xapuy 3809 QuewhoTdug “y eTqeL

NOLLVSNadwOo


-9-

Census. Within an establishment, specific job categories are selected to repre-
sent broader occupational definitions. The sample establishments were classified
in industry categories based on the 1972 Standard Industrial Classification (SIC),
as defined by the U.S. Office of Management and Budget. Within the private sector
sample, establishments are designated by a 2-digit SIC, while in State and local
governments, industrial categories vary from a more specific 3-digit SIC such as
elementary and secondary schools to a broader major industry division such as
public administration. Each establishment is also classified by ownership--State,
local, or private.

Fixed employment weights from the 1970 Census 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 ali of the industry and
occupation seriés indexes. For the series based on bargaining status, region, or
area size, however, employment data are not available from the Census. The 1970
employment weights are reallocated within these series each quarter based on the
current 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.

Data are collected for the pay period including the 12th day of the survey
months of March, June, September, and December. ECI statistics are neither
annualized nor adjusted for seasonal influences. For example, the 1.2 percent
change in wage and salary rates for "private industry workers" in March 1983
(table 3) is the actual percent change in straight-time average hourly earnings
from the pay period including the 12th day of December 1982 to the comparable
pay period in March 1983.

More detailed information on the ECI is available in several articles and
publications. - These include a chapter in the BLS Handbook of Methods (Builetin
" 2134-1), "The Employment Cost Index." Two articles also appeared in the Monthly
Labor Review: "Employment Cost Index: a measure of change in the ‘price of labor’,"
July 1975; and "How benefits will be incorporated into the Employment Cost Index,"
January 1978. Reprints of these articles plus several other descriptive pieces
are available upon request.


bee

United States

Department &>

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

Judith Finger: (202) 523-1165 USDL: 83~206.
Kathryn Hoyle: (202) 523-1913
FOR RELEASE: 10:00 A.M. E.D.T.
Thursday, May 5, 1983

EMPLOYMENT COST INDEX — MARCH 1983

The Employment Cost Index (ECI) increased 1.6 percent in the 3 months ended
in March 1983, the U.S. Department of Labor's Bureau of Labor Statistics reported
today. The Index stood at 113.2 for compensation costs (wages, salaries, and em=
ployer costs for employee benefits), based on June 1981=100. The ECI covers
private industry and State and iocal government workers. It is not seasonally
adjusted.

_The 1.6 percent increase in compensation costs was slightly lower than the
1.72percent rise of a year ago. This similarity in increases of compensation
costs, however, did not extend to the increases of its components—-wages and
salaries and benefit costs. Wages rose at a substantially lower rate in the
March 1983 quarter (1.2 percent) than in the previous year (1.8 percent). Bene-
fit costs, on the other hand, rose much faster in the March 1983 quarter than a
year ago, particularly for health and State unemployment insurance and, to a
lesser extent, for supplementary unemployment benefits.

Q The slowdown in wage gains was concentrated in private industry where wages
and salaries increased 1.2 percent, down from 2.0 percent in the first quarter
last. year. Occupation groups, such as service and clerical workers, had lower
first quarter wage increases than usual. Service workers, whose increases in the
past 5 years ranged between 3 and 5 percent, registered 1.3 percent wage gains,
down from 3,9 percent a year ago. Corresponding wage increases for clerical
workers dropped to 1.6 percent from 2.7 percent. .

Industries that are heavily unionized aiso showed substantially lower wage
increases than in previous years. In durable goods manufacturing, for example,
wages rose 0.7 percent, compared with 1.7 percent a year ago. This reflected a
new contract in the steel industry that cut regular pay by $1.25 an hour and
eliminated an existing 6-cents cost-of-living allowance (COLA). In addition, a
decline in the Consumer Price Index reduced COLA's further in the steel and
automobile industries.

Over the year ended in March 1983, compensation costs rose 6.5 percent for
all civilian workers. Wages increased at a slower rate, 5.6 percent. For all
private industry workers, wage gains (5.4 percent) dropped below 6 percent for
the first time since this measure began in September 1976. The record low wage
gains were widespread among the ECI series including workers in durable goods
manufacturing (4.5 percent), construction (4.2 percent), and retail trade
(4.1 percent).


*azou AzozeuRTdxe aag

“sates Ailjsnpuy pue ‘uoqt3edno0e ‘31 e8e1339e 942 JOZ BS04 02 eT qeavduod kTI9TI38 Jou ee saties 9804} JO} SomapuT 241 :ZLOM,
*S19410m PToyssnoy pue wxez sepatoxg /T
ore ss StL rane st ez TOIT 8°80T 0°90T stot tos ss spare 338430
“7g €°9 rae] €'T e°r Br 6°1IT S°OIT 6°SOT "1 * * spear ueiqzpodozqey ‘
ezTS Bele Aq ‘siayxI0KH
L°s 9°9 cor 6°T raat Le T'vIt bra as 6°L0T wort ss ss es ss a8aq
z's T’s £9 wT 6° wT T‘OIT 9°80T 2£°90T "ot toss Teaquey yazoy
ws 8°9 o£ S°T 6° 8°e V°LIl 8° 601 L°SOt. St tos ts ss ss ygnog:
o°s 8°9 6°L y" OT OT O°7IT S°TIT T°90T Tot tosis sss 4seaqqaon
uoy8ar"kq “sraxI0N
rans zo ek eT rani cara O°TIT 9°60T S°SOT 7s * + BuTanjoejnuemuoy
s°y g°¢ c's S°T s°. sz L°O1T T°60T 6°SOT Sc tos os Zupinjoejnuey
» O'S 19 Stk er I'l €°% 6°OIT $°60T 9°SOT stot sos se 2s yopunuoy
8°9 TL Z°Or wT eas “1 €°vil L211 O°LOT st + + Supanzoeznuewuoy
ars ers 0°8 s raat Vr TI 8°OTr 6°SOT "or t s Bupainjoegnuey
0°9 s°9 €°6 Ort vans wT o°?IT S°1It S°90T sotto sees se ss uopun
. snjeqjs Sujuyesieq Aq “Sieyi0M
€86T 786T c86T €86T 7861 786T €86T c86T Z86T
youey *29q youey yay *20q yorey ypsey *2aq yorey
Pepue syquou 77 ; Pepus syquom ¢ . satieg
Joy sesueyo Jusdi0g (OOT=1861 eunf) Soxepuy

ezTs beqe pue ‘uoyser ‘snqeys SuyuTesieq Aq /T ‘s10xI0m

Aajsnpuy eqeatad *kqTUo seyTieTes pue se8em 103 xopuy

(peisnfpe ATTeuosess ON)
3809 JuewhoTdug -¢ atTqey,

" salavivs NV saovM


-2-

Twelve-month increases for State and local government workers were 7.1 per-
cent for compensation costs and 6.4 percent for wages and salaries alone.

cvs s0e



“SaTqTATI9e Aroje{NBaI pue

“seotares yaTeoy pue ‘Tetoos ‘Axeaqrt ‘otduwexs 3203 ‘sapntouy /é

“sToy10M quoWMIIACS Terepeg pue ‘proyesnoy ‘wxez sapnqoxe pue sx2¥z0m

“(satzeueq aahoqdus x03 sys09 s9h0Tdua pue ‘sorzeqes

“eTqeTTeae jou eqeq *-

“Sx9qZ0M ployesnoy pue wrey sapntoxq />

‘earqeaysTurupe ‘Tetotpnt ‘aarqe[st8aq yo sqstsuoy /E
ueuEIEA08 [eSOT pue eqeag pue AxIsMpuT aqeatad sapnqouy /Z
‘se8ea) s3soo uoTzesuadmos [e303 uy saSueyo somnseom xepur ony fT

SL aa - and “ oz Z°91T ELT T'801 “_' * + */€ uotqeaqsturmpe orqqng
ee oe - el ° OL SLIT O°9IT $601 7§ saotares 19430 pue sTertdsoy
ze Le - Ss 6 6" @LIt 9°9IT €°601 * ' Azepuosas pue Azequowaty
Te ek - a o 6° 9°9IT 8°SIT 6801 Tort rt ttt ss + spooyag
aa ve - s 6 ort SOIT 6°SIT 0° 601 Tt tt rts ss saotazag
Uorstarp Azqsnpur hq ‘s19¥%204
a9 “9 - “et € cand 6°9IT OvEIT Z°801 "cot ttt + szayz0m ze{[oo-antg
we we - Cha a zl OvLIE 8°SIT E608 "ot st + szayz0m zeTToo-a3TyK
dnoz Tevotzedna30 fq ‘sxa¥x0K
EL wk - rani Le err SOIT T'StE 8° SOT + s4ax920m QueuEIeA08 TeD0T pue aze7g
9 99 ok oT vt as O°2IT soit £°Sor ott tts Burangoeznueunoy
19 a9 we 61 Or or Sat 9 OFT 0°901 Tor fs Foss Burangoeznuey
UoTSTATp Azqsnput kq ‘srayI0K,
“9 v8 SL aes oz se S°€IT STtIt £:901 TT ttt ttt + saayz0om aotazag
29 i 0°8 oT an Sl E@it e°OIT f 9°Sor "1 1 tt + + srayt0m reTTOo-anTg
99 s9 OL 1 ran or 8°ZIT 8°OIT 8°SOT "tt 5 + saayzom zeTT09-a9T YM
dnox8 Teuorzedna20 hq ‘sxaqz04
9 99 BL rani er “au 9°2IT LO 8°SOT ‘ct + + fy saayzom Aaqsnpur aqeatzg
SL rag - e% “ oz Z°91T Q'EIT TOT "+ + */€ vorgeaqsrurmpe otyqng
BL vel - wT el OL 9°9IT O°SIT @°80L Tt tot tt s+ + saotazag
a) “9g - ST ans ST SEIT Sc LIT 97901 Tt ttt + Surangoegnueuuoy
rg zg - 6'T Orr eT S°Z1t 4° OIT 0901 Tot tts ss + Surangsegnuey
uoTsTatp Azasnpur hq ‘szayxz0K,
99 6k - LL ans 6% €°91T. as Z L01 Tort tt + + saayszom aotazag
a9 19 - ot al St €°ZET SOIT £°Sot "ttt + + saayz0m aepToo-antg
89 “9 - OT UL ST Lett 6 IIT S90T "ct tt + szaxz0m zeTTO9-23T uM
. dnorz8 euotzedns30 Aq ‘sx9¥20K4,
$9 99 - OT a1 ant 2€lt UIT €°901 Totoro s ss sss 7% sazayz0om uerprarg:
€86E ze6r | z86T €86T Z86T ZB6T €86T C86T e86T
yorey | ‘sag | yorey wore | ‘cag yoreH wore +3aq qozen
Pepus syquom ZT Papus stauom ¢ satzag .

COOT=186T SUN) Saxepuy

Woy Sasueys yWssa0g

(paasnlpe Ayjeuosess yoy)

/T dnox8 Aaysnput pue uoryedno20 Aq xapuy yop quomAotdu, *1 atqez

NOILVSN3dWOo