COMPENSATION

Table 4, Employment Cost Index, private industry workers, by bargaining status and area size 1/

(Not_seasonally adjusted)

Indexes (June 1981=100)

Percent changes for

Series Tmonths ended 12 months ended
Dec. Sept. Dec. Dec. Sept. | Dec. Bec. Sept. | Dec.
1981 1982 1982 1981 1982 1982 1981 1982 1982
Workers, by bargaining status
Unions ee ee ee ee ee eee | 108.8 110.6 112.3 2.2 2.0 LS 10.7 7.9 1.2
Manufacturing. . 1... 4. | 104.6 110.3 11.8 2.2 21 14 - 7.8 6.9
Nonmanutacturing ....... | 105.0 111.0 112.8 2.2 Ql 1.6 - 8.1 Teh
Nonunion ss. eee ee ee ee | 103.5 108.5 109.7 1.8 1.9 La 9.4 6.7 6.0
Manufacturing»... 6... ~ | 103.5 108.4 109.2 L7 1.7 7 6.5 5.5
Nonmanutacturing ....... | 103.5 108.6 109.9 1.8 2A 1.2 - 6.8 6.2
Workers, by area size
Metropolitan areas .. 1... . | 104.1 109.4 110.9 2.0 2 14 9.9 cat 6.5
Other areas... 1 eee ee ee | 103.2 108.6 109.1 14 15 5 9.6 6.7 5.7
A/ The index measures changes in total compensation costs (wages, salaries, and employer costs for employee henetits). Farm

and household workers are excluded.

NOTE: The indexes tor these series are not strictly comparable to those tor the aggregate, occupation, and Industry secies.

See explanatory note.

bata not available.


WAGES AND SALARIES
Table 3. Employment Cost Index for wages and salaries only, private industry workers, 1/ by occupation and industry group

(Not _seasonaliy adjusted)

Tndexes (June 1981=100) Percent changes for
Series 3 months ended 12 months ended
Dec. Sept. Dec. Dec. Sept. | Dec. Tec. Sept. | Dec.
1981 1982 1982 i981 1982 1982 1981 1982 1982
Private industry workers 1/. . + + + 103.8 109.0 110.3 1.8 LB 12 8.8 6.9 6.3
Workers, by occupational group
White-collar workers... ++ + 103.9 109.4 110.6 2a 2.0 La O1 1S 6.4
Professional and technical
workers se eee eee ee 105.5 111.8 112.9 21 2.2 1.0 10.7 8.2 7.0
Managers and administrators = « 102.8 108.5 109.3 1.2 1.2 7 8.6 6.8 6.3
Sales workers... se eres 101.9 104.5 106.2 4.0 2.7 1.6 75 6.6 4.2
Clerical workers . +... 104.2 110.3 111.6 15 1.8 1.2 8.9 14 cat
Blue-collar workers». ee ee + 103.9 108.5 109.7 1.6 1.8 LL 8.6 6.1 5.6
Craft and kindred workers . . « 104.3 109.6 111.2 1.4 19 LS 8.5 6.5 6.6
Operatives, except transport. « 104.1 108.3 109.3 2.0 1.6 9 9.0 6.1 5.0
Transport equipment operatives. 106.0 106.9 17 1.8 8 7.8 5.0 4d
Nonfarm laborers «6 +e ee + 103.3 106.5 107.8 1.8 13 1.2 1.9 4.9 4.4
Service workers... ++ eee 102.7 109.3 14 a 1.3 1.9 8.3 Th 8.5
Workers, by industry division
Manufacturing s/s +e ee es 104.0 108.8 109.8 1.9 17 9 8.7 6.6 5.6
Durables see eee eee ee 104.5 109.0 110.3 2.6 LS 1.2 9.2 6.8 5.6
Nondurables .- + +e + eee 103.1 108.5 109.1 LL 21 +6 wT 6.4 5.8
Nonmanufacturing «ses ee ee 103.8 109.1 110.5 1.8 19 13 9.0 7.0 6.5
Construction ... + wae 104.3 109.1 109.7 1.3 17 “6 8.8 5.9 5.2
Transportation and public
utilities... eee ee ee 103.6 109.5 pbees! 1.6 2.4 LS 8.4 14 72
Wholesale and retall trade . ~ 102.3 106.5 107.2 1.0 7 7 7.6 Sel 4.8
Wholesale trade... e+ +s 103.4 109.0 109.8 1.4 al 7 7.8 6.9 6.2
Retail trade . eee eee 101.9 105.5 106.1 9 1.0 “6 15 4.5 4
Finance, insurance, and
real estate ss eee ees 102.3 106.1 109.0 4al 3.6 2.7 9.9 19 6.5
Services ss eee eee eee 105.8 112.5 114.3 21 2.3 1.6 10.6 8.6 8.0

1/ Excludes farm and household workers.


WAGES AND SALARIES

Table 5, Employment Cost Index for wages and salaries only, private Industry workers, 1/ by bargaining status, region, and area size

(Not seasonally adjusted)

Indexes (June _1981=100) Percent changes for
Serles 3 months ended 12 months ended
Dec. Sept. Dec. Dec. Sept. | Dec. Dec. Sept. | Dec.
198 1982 1982 1981 1982 1982 1981 1982 1982
Workers, by bargaining status
Union»... eee... | 105.0 110.3 111.8 2.2 2.0 La 9.6 Ted 6.5
Manufacturing ....... | 104.7 109.5 110.8 2.0 2.1 1.2 8.9 6.7 5.8
Nonmanufacturing ...... | 105.2 LL 112.7 2.3 2 1.4 10.2 8.1 ua
Nonunion ss... ee... . | 1032 108.3 109.5 1.6 L7 LL 8.5 6.6 6.1
Manufacturing . 1... 4. | 103.3 108.2 109.1 1.6 14 3B 8.3 6.4 5.6
Nonmanufacturing. ..... | 103.2 108.3 109.6 1.6 1.8 1.2 8.6 6.6 6.2
Workers, by region
Northeast... ....... | 104.4 | 109.7 LS 27 2.8 1.6 8.8 29 6.8
South «ss. ......... | 10208 108.8 109.8 “9 1.3 9 8.3 6.8 6.8
North Central»... . 4... | 1033 107.6 108.6 1.7 14 9 8.4 5.9 5.1
West see eee ee eee ee | 105.1 110.7 112.0 18 1.9 1.2 10.3 73 6.6
Workers, by area size
Metropolitan areas... ... | 104.0 109.1 110.5 1.9 19 13 9.0 6.9 6.3
Other areas»... . 2... | 10301 108.3 108.8 13 14 5 8.4 6.4 5.5

i/ Excludes tarm and househoid workers. .
NOTE: The indexes for these series are not strictly comparable to those for the aggregate, occupation, and Industry series.

- See explanatory note.



?

United States :
Department OY
of Labor

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

Judith Finger: (202) 523-1165 USDL: 83-48
Kathryn Hoyle: (202) 523-1913

FOR-RELEASE: 10:00 A.M. E.S.T.
Thursday, February 3, 1983

EMPLOYMENT COST INDEX - DECEMBER 1982

The Employment Cost Index (ECI) increased 1.2 percent in the 3 months ended in December
1982, the U.S. Department of Labor's Bureau of Labor Statistics reported today. The Index stood
at 111.4 for compensation costs (wages, salaries, and employer costs for employee benefits),
based on June 1981=100. The ECI covers private industry and State and local government workers.
It is not seasonally adjusted.

The 1.2 percent rise in compensation costs during September—December 1982 was substantially
below the 1.9 percent increase in the same period the previous year. A similar slowdown was re-
corded in wage and salary increases (1.1 percent, down from 1.9 percent). The pattern of smaller
increases in 1982 compared with 1981 was widespread and pervasive in the State and local government
and private industry sectors, as well as among nearly all ECI occupational and industrial series.

Wages and salaries for private industry workers, for example, rose 6.3 percent in the
12 months ended in December 1982, compared with a rise of 8.8 percent a year earlier. The
6.3 percent rise was the lowest annual increase since BLS began this measure in September 1976.
Occupational and industrial groups with comparatively high unemployment rates in 1982 also
posted the lowest annual wage increases since 1976: Blue-collar workers (5.6 percent); opera~
tives, except transport (5.0 percent); nonfarm iaborers (4.4 percent); durable goods
manufacturing industries (5.6 percent); and construction (5.2 percent).

Wages for union workers rose 6.5 percent in 1982, the lowest annual increase since 1976 and
down from 9.6 percent in 1981. Union wage increases in 1982 reflected collective bargaining wage
concessions during the year and settlements which provided no specified wage increases (e.g.
autos and trucking).

Slowdowns also were registered for nonunion workers whose wages advanced only 6.1 percent
in 1982, a record low in this series and down from 8.5 percent in 1981.

Regionally, 1982 wage increases were highest (6.8 percent) in the Northeast and South. The

lowest increase (5.1 percent) was recorded in the North Central region, which has a heavy concen-
tration of union workers in durable goods manufacturing industries.

Consistent with trends in the private sector, 12-month compensation cost and wage Increases
for State and local government workers steadily declined in 1982. For the December 1981-82 period,
compensation costs rose 7.2 percent while wages increased 6.5 percent. Corresponding increases
were 8.5 percent and 8.1 percent in the September 1981-82 period and 9.3 percent and 8.7 percent
in the June 1981-82 period.


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 occupations and industries. The ECI wage and
salary series is limited to changes in wage and salary rates, defined as straight-time average
hourly earnings. Stralght-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 henefits 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 holidays, paid vacations, 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, rallroad retirement
and supplemental retirement, ralliroad unemployment insurance,
Federal and State unemployment insurance, workers’ compensation,
and other legally required benefits such as State temporary
disability insurance; and

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 civillan 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 sampie
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 Census. Within an
establishment, specific job categories are selected to represent 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 owmership--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 all of the industry and occupation series indexes. For the series based on
bargaining status, reglon, 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 calcula
tion of index numbers appears in an article, "Estimation procedures for the Employment Cost
Index," in the May 1982 issue of the Monthly Labor Review.


COMPENSATION

Table 1, Employment Cost Index by occupation and industry group 1/

@ot seasonally adjusted)

Tadexes (June 1981-100) Percent changes for
Series 3 months ended 12 months ended
Dec. Sept. Dec. Dec. Sept. | Dec. Dec. Sept. | Dec.
1981 3982 1982 1981 1982 1982 1981 1982 1982
Civilian workers 2/.. +. ++. ++ ++ | 104.5 110.1 LL. 19 24 1.2 - 13 6.6
Workers, by occupational group
White-collar workers «~~... +] 104.9 110.7 11L.g 21 2.8 Ll - 7.8 6.7
Blue-collar workers... ss s+ + | 104.1 109.2 110.5 1.8 2.0 1.2 - 6.7 6.1
Service workers «~~. +++ +++] 104.2 110.8 112.4 14 2.3 14 - 7.8 1.9
Workers, by industry division
Manufacturing... +++ +++ + + | 104.0 109.3 110.4 1.9 2.0 1.0 - WL 6.2
Nonmanufacturing ... ++. + ++ | 104.8 110.5 1.8 19 2.6 1.2 - 7.5 6.7
Services... eee eee eee] 1071 113.5 115.0 2.6 3.9 13 - 8.7 Th
Pubiic administration 3/... +. | 106.0) | 112.8 113.6 1.6 3.4 7 - 8.1 7.2
Private industry workers 4/... «+ | 104.0 109.3 110.7 2.0 2.0 1.3 9.8 7.2 6.4
Workers, by occupational group
Whitescollar workers... +. ++ | 104.0 109.5 110.8 2.2 21 1.2 10.1 7.6 6.5
Blue-collar workers... +... | 104.0 109.0 110.3 1.8 1.9 4.2 9.6 6.7 6.1
Service workers. . ++ +e eee | 103.1] 109.6 111.8 12 1.6 2.0 9.3 7.6 8.4
Workers, by industry division
Manufacturing... +++ + ++ +] 104.0 109.3 110.4 1.9 2.0 1.0 9.8 Td 6.2
Nonmanutacturing ... ++ ++ ++ | 103.9 109.3 110.8 19 21 1.4 a7 7.2 6.6
State and local government workers . .| 107.4 114.3 15.1 2.0 4.6 7 - . 85 72
Workers, by occupational group
White-collar workers .. +... .| 107.8 114.9 115.8 2.0 4.9 8 - 8.7 14
Blue-collar workers... .. +. | 105.9 112.7 113.0 1.6 3.5 3 - 8.2) 6.7
Workers, by industry division
Services see eee ee ee ee | 107.9 114.9 115.9 2.0 5.0 9 - 8.6, 14
Schools » se eee eee ee + | 107.9 114.8 115.8 1.8 5.2 9 - 8.3. 73
Elementary and secondary . ..| 108.3 115.6 116.6 1.9 5.6 9 - 8.7 wT
Hospitals and other services 5/ .| 107.8 415.3 116.0 27 4.5 “6 - oe 1.6
Public administration 3/..... | 106.0 112.8 113.6 1.6 364 a - Bele 7.2

The index measures changes in total compensation costs (wages, salaries, and employer costs for employee benefits).
Includes private industry and State and local government workers and excludes farm, household, and Federal government workers.
Consists of legislative, judicial, administrative, and regulatory activities.

Excludes farm and household workers.

Inciudes, for example, library, social, and heaith services.

Data not available.

Hrgtetetete:


WAGES AND SALARIES
Tabie 2, Employment Cost Index for wages and salaries only, by occupation and industry group

(Not_seasonally adjusted)

Indexes Gune I98isTooy Percent changes for
Series J months ended 12 months ended
Dec. | Sept, | Dec. Deer Sept. | Dec, Dee. Sept. | Dees
1981 1982 1982 1981 1982 1982 1981 1982 1982
Civilian workers / ss. +e eee eee ss | 1064 | 109.7 | ito.9 Lo 2.2 La - 7.0 6.2
Workers, by occupational group
White-collar workers «~~. ..... {| 104.7 | 1104 | its 2.0 2,6 a) - 7.6 6.4
Blue~collar workers... ....... | 104.9 | 1086 | 100.8 1,6 1.8 La - 6.1 5.6
Service workers». ppp eee pane 103.6. 110.1 111.8. Lb 2.0 1.5. - 74 79
Workers, by industry division
Manufacturing... 4.4.4... | 1040 | 108.8 | 109.8 1.9 1.7 a) - 6.6 5.6
Nonmanufacturing ....,..,... | 106.5 | ito | a1.3 1.8 24 Ll - 7.2 6.5
Services vse eee ee ee ees | 106.6 114.4 2.1 3.4 La - 8.4 73
Public administration 2/,...... | 105.5 112.6 16 3.2 6 - 7.8 6.7
Private industry workers BMiveecenee 103.8 110.3 1.8 18 1,2 8.8 6.9 6.3
Workers, by occupational group
White-collar workers ,....,.... | 103.9 | 109.4 | 110.6 La 1 75 6.4
Blue-collar workers»... ..,.... | 103.9 | 108.5 | 109.7 Let 8.6 6.1 5.6
Service workers... ss... | 10217 | 10923 | iiita 19 8.3 Th 8.5
Workers, by industry division
Manufacturing»... s+... | 1040 | 198.8 | 109,8 19 1.7 0 8.7 6.6 5.6
Nonmanufacturing .. 4.4... .+.. | 1038 | loot | ios 18 1.9 13 9.0 7.0 6.5
State and local government workers .., . 107.0 113.5, 114.0 19 4a 4 - 8.1 6.5
Workers, by occupational group
White-collar workers ..,...... | 107.5 | i162 | 1146 2.0 49 oh - 8.3 6.6
Blue-collar workers, ......... | 1055 | 1115 | 112.0 Ls 33 4 - 7.3 6.2
Workers, by industry division
Services .- 4. +e eee yee ees | 1076 | i142 | 1146 2.0 5.9 oh - 8,2 6.5
Schools... ee ee pe eee ee | 107 | te2 | 18s 1.9 5.3 3 - 8.0 6.3
Elementary and secondary ..,.. | 107.9 | 114.9 | its.1 1.8 5.6 2 - 8.4 6.7
Hospitals and other services 4/... | 107.3 | i143 | itaco 2.6 44 3 - 9.3 m1
Public administration 2/,...7,... | 1055 | atta | 11206 1.6 3,2 16 - 7.8 6.7

i/ Includes private industry and State and local government workers and excludes farm, household, and Federal government workers.
2/ Consists of legislative, judiclai, administrative, and regulatory activities,

3/ Excludes farm and household workers,

4/ Inciudes, for example, Library, social, and health services.

= Data not available.