EC! cumulative
September 1975— September 1978

quarterly percent changes,

Occupational group ! H 11 H
All workers ° H t 24.0 r
Tro White-callar workers | ' 25.9 i 7
creer Blue—collar workers 1 t + WL ! =
Service: workers, ! ! — H a
I 1 j H 4
1 t '
! i ' —
H ste: i —
fi 7 1 '
1 t t t —
; | H H a
Industrial category H ! It H
All. private: nonfarm H i 20 H
~--~~: Manufacturing ! i 28: i 7
“> Nonmanu facturing: t ' 1 4
f I H +
t t t
t t 4
t t
i ' 1 —
i t
t t —
fy} b t
1 r t —
H i +—} _
Union status H H Ur an
Union occupations . —- H 3.9 oe |
~~-~~"Non=union occupations =! H . Hl |
H H H
' t 1
t 1 '
t I
H r H
1 ! i
' rot
t 1
t t t
Regions i H MI H
Northeast H H ata H
~ South H H me ' 7
* North Centra! 1 t 8.4 1 4
West H H — H a
H I cee H 4
H H wr oe H 4
1 1 '
t 1 t —_
1 t 1
‘ t 1 t —
1 t '
i + + + Ho
n L n ! n L L i L n ae ee L l
1975. 1976 1977 “1978

PERCEN

35.
30

- 20

15
10:

35.
30:

15:
1a:

2
20.
5
10.


-10-

Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, and West
Virginia; North Central——Illinois, Indiana; Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska,
North Dakota, Ohio, South Dakota, and Wisconsin; West-~Alaska, Arizona, California, Colorado,.
Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, and Wyoming.

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.

Releases are scheduled for February, May, August, and November—2 months after each

quarter. Statistics in these releases pertain to the preceding quarter and the 12-month period

ended in that quarter. The Employment Cost Index statistical series, from September 1975, is

available in Current Wage Developments, a BLS monthly: periodical. . .


~T-

Straight-time hourly earnings: are used in the ECI as a Proxy for: a measure of wage and
salary rates. Straight-time earnings are defined as total earnings before: deductions, excluding
premium payments: for overtime, weekend, and late-shift work. Production bonuses and cost-of—

_ living allowances: are included in. straight-time earnings. All occupational wage and. salary data
are: collected: as, or converted into, straight-time hourly earnings. for the survey occupations.
Asa result, fluctuations in commission earnings=-commission rates remaining unchanged—influence
the Index. Data pertain to the pay period including the 12th of the survey months of March,
June, September, and December. ,

~The Index: occupations. conform to the: Bureau of Census: occupational classification system

which consists of 441 occupations: grouped. into: 12 broad occupational categories. Nine of these.

groups: are: now in: the scope: of the: survey. These: major occupational groups: are:

Professional_and. technical workers.
These occupations: are: concerned: with: the theoretical. or practical :

" aspects: of such fields: as: art,. science, engineering, education,.

medicine,. law, and: business: relations. . ~
Included are such highly trained. personnel as teachers,. dentists,

accountants,. attorneys, chemists, engineers, physicians, and: the
clergy. Computer specialists, political scientists, writers,
artists, and entertainers are- also in this category.

Managers: and administrators:

This: group includes. those positions charged: with the direction of
and responsibility for a given. activity.. Top: and middle management
are included as well as all other supervisory personnel above
first-line supervisory: level...

Sales workers

These: workers. include sales clerks, manufacturing sales represen—
j tatives, insurance and real estate agents, stock and bond sales

agents.


-6—

Description of Employment Cost Index

The Employment: Cost Index: is designed to measure changes in the rate of compensation of a
standardized mix of labor services, much like the Consumer Price Index measures. changes: of a
fixed weight market basket. The Employment Cost Index (ect) Measures change in the price of
labor. It does: not measure change in the level of well~being of workers,

The ECI now measures. changes in wages and salaries. It.will be expanded to cover. changes
in employee benefits. Benefit data: are now: being collectéd, edited, and ‘stored pending comple~
tion of the computer processing: system which is scheduled to. be operational in 1980. The resplt.
of this. increase in scope will be. an index of change in total compensation—wages, salaries, and’
employee benefits. A historical series. based upon these data will. them be- provided in. addition.
to current statistics... ,

Further expansions: of the index: will be for broader industrial coverage. At different:
stages. this: industrial expansion: will include Federal, State and local government workers;.
private household workers; agricultural workers. Total. compensation statistics: for an: additional °

major industry: division—Public. Administration—will be made available when expansion to: govern—
ments is complete, :

Long: term program: objectives include: increasing the amount of detail for industries,.
occupations, and. areas as: well as. increasing the frequency of publication. Seasonally adjusted
statistics will become available as: soon as sufficient experience is accumulated to compute
adjustment factors.

ECI statistics. are now computed from over 9,600 occupational wage and salary observations
collected quarterly from. approximately 2,100 respondents. With. certain exclusions, these obser-
vations represent the occupational employment of the: private nonfarm economy. Each observation
may cover from one worker to several thousand. The 9,600 observations collected each quarter
cover nearly one-half niillion employees. Respondents in this quarterly survey provide data on
establishments or groups of establishments compriging a~reporting unit. Establishments. of all
sizes are within the scope of the survey. The major exclusions are-the self-employed, unpaid
family workers, agricultural employees, and private household employees. The agricultural and
private household employees are temporary exclusions. Self-employed and unpaid family workers

are not within the scope of the survey. .


~9-

A complete listing of ECI. occupations may be found in the “Employment Cost Index-~Occupa-
tion Classification System Manual", Bureau. of Labor Statistics, January 1975.

The published industry and occupational statistics do not pertain to mutually exclusive
groups of employees, Workers from all industry divisions may be represented in a major occupa—
tional group; conversely, workers from all occupational groups: may be represented in a major.
industry division, For example, statistics for the industry "Services" are based on occupational
pay data for professionals, managers, clerical workers, service workers, etc, Similarly, statis~
tics for the occupational group "Service workers" cover such workers as janitors, waiters,
practical nurses, flight. attendants, and guards; these may be found. in real estate, retail
trade, transportation, and other industries as well as services, °

The Employment Cost Index statistics, although computed from levels of occupational pay,
are measures of change. The pay leyel data collected from sample reporting units are weighted
into occupational averages, by industry,. using weights essentially derived from a 1974 occupa
tional employment survey. These industry. pay averages are aggregated for index computation
using fixed weights obtained from the. 1970 decennial census. Average pay levels for the dverall
measure. and. its: components. are. not explicitly calculated as part of the computational process,
Although pay levels can be obtained by dividing the wage: and salary aggregates by the fixed
index weights, these. data.do not correspond to actual average pay levels at any point in time,
However, ‘because of interest expressed in the statistical: design of this series, average pay:
levels have been computed for the overall. and component published series for September 1975,
These levels are available upon request. The series in index number form is also available upon
request.

In addition to the industry divisions shown in the table, published statistics cover
mining and finance, insurance, and real. estate, but insufficient data preclude separate publica—
tion of these results. Series for which statistics are published comprise over 90 percent of
the total sample. The relative importance of the industrial and other component submeasures,. as
of December 1977, and estimates of relative sampling error are also available on request,

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,


; United States
Department
. 4 of Labor

9
Bureau of Labor Statistics Washington, D.C. 20212
USDL: 78-985
J. Raftery (202) 523-1934 or 523-1165 FOR RELEASE: 10:00 A.M. E.S.T.
K. D. Hoyle (202) 523-1913 Thursday, November 30, 1978

Home: 333-1384
EMPLOYMENT COST INDEX--SEPTEMBER 1978

Wage and salary rates measured by the Employment Cost Index (ECI) rose 2.0 percent in the 3
months ended in September 1978, ‘the Bureau of Labor Statistics of the U.S. Department of Labor
reported today. The third quarter increase--about the same as the 2.1 percent second quarter
rise--included pay gains for workers in construction and union manufacturing plants, as well as
for service workers and salesworkers. The increase was 8.0 percent for the 12 months ended in
September 1978. (See table.) ‘Since September 1975, when the series began, wages and salaries
have climbed 24.0 percent. (See chart.) .

June_1978-September_ 1978

A 2.4 percent increase in construction, down from 2.9 percent in the second quarter,
continued to reflect seasonal collective bargaining patterns in the industry with settlements and
deferred wage adjustments concentrated in the spring and summer months. The pay advance in con-
struction, along with a 2.4 percent rise in services, helped push the third-quarter increases for
nonmanufactyring industries (2.1 percent) above manufacturing (1.8 percent). Within manufactur-
ing, rates of pay for union workers rosé 2.4 percent, compared with 1.3 percent for nonunion
workers. Third quarter increases for these two groups in nonmanufacturing were much closer
together--1.9 percent for union and 2.1 percent for nonunion. The wholesale and retail trade
industries had the smallest third-quarter increases (1.1 and 1.2 percent, respectively) among the
industry divisions published.

The 2.5 percent pay advance for sales workers, although down from 5.4 percent in the second
quarter, was the largest for the occupational groups published. The salesworker group, whose pay
is heavily influenced by commission earnings which fluctuate with the volume of sales, tends to
be the most volatile of the 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


Clerical workers

Within this category are workers who type, operate computer and
office ‘machines, keep records, take dictation, and deliver mail.
Craft_and kindred workers

Work activities in this group primarily involve fabricating,
processing, inspecting or repairing material, products or structural
units. Included are a variety of occupations such as: carpenters,
tool and die makers, jewelers, electricians and type-setters. An
apprenticeship is usually a prerequisite for entry into these *
occupations, ,

Operatives, except transport

Workers in this grouping are engaged in such activities as operating
or tending: machinery., assembling goods in factories and photographic
processing.. Occupations such as solderers, welders, meat cutters
and.gas station attendants are also included.

Transport equipment operatives

Truck, bus and taxi drivers fall within this major occupational
group.

Nonfarm laborers

Laborers move, lift and carry materials and tools in work-places,
This group includes longshore workers, construction laborers,
freight and material handlers.

Service workers ‘

This group includes those who serve individuals in institutional,
commercial and other establishments. Those responsible for maintain=
ing law and order are also included. These occupations include
police and fire fighters, janitors, bartenders, waiters, dental
assistants, practical nurses, flight attendants and barbers.

Private household workers are excluded.


Rate of vage and salary changes in Employment Cont Index

(Farcent changes)
Series: 3 months ended 12 months ended
September’ December March June: September December March: June September
1977 1977 1978 1978 ‘1978 1977 1978 1978 1978
ALL priv Le Ly a rt 2.0 7.0 ns | 7.8 8.0
Workers, by occupat group
White-collar workers .. eeeeeeee 1.7 1.8 1.8 2.1 1.9 6.5 7.1 7.6 7.8
Professional non technical
1.7 1.6 1.3 2a 6.7 6.8 6.6 6.9
0:7 26 | 18 14 6.2 6s | 6.3 6.6
4.0 0.3 564 2.5 * 7.9 11.8 12.7
1.7 24 1.4 1.8 6.9 75 7.7 7.4
Blue-collar: workers Le ua | 2.2 2.0 1? 78 | 79 8.0
Craft and kindred 17 13 | 23 212 3.2 me | 79 re
Operatives, except transport 2.2 25 | 14 20 13 az | 78 a3
Trangport equipment: operatives 1.0 13 | ats Ls 73 Be | a6 8.3
Nonfarm laborers... 1.5. 24 2.1 17 7.6 8.3 764 7.8
Service WOrkOES) ...sceessenesoeesen 7 10 3.6 | 1.9 2.3 6.4 a7 | 84 9.1
Morkers, by industry division ‘
1.8 2.0 1.6 1.8 7.8 8.0 7.8 74
2.0 1.8. 1.7 1.9 7.8 7.8 7.9 7.6
Nondurables. .....csceoee seeeenees 1s 2a | us 1.6 ns a3 | 76 ma
Nonmanufacturing. Ls LT: Lo | 26 21 6.5 2 | 78 a3
Construction: ... La we nz | 29 26 6.6 9 | 75 at
‘Transportation and public utilities -.-.| 2.0 21 uae | oath 200 9:2 7 | 79 rn
Wholesale: and retail trade. 0.9 ass | scr | 27 12 6.6 8.5 8.7
Wholesale trade .sesseosee, 0.2 2ie~ | 2s | ie na 6.8 8.2
Retail trade... 14 1 a3 | 3a 12 5.8 nL 8.9
Services: «.ceeecee a or ny | 17 28 5.3 6.0 6.7
Workers, by region
Northeast: a] 15 us | 16 Le 6.5 7.2 | 6.8 6.8
South: 1s 12 30 | 2i2 23 6.9 as | aa 3.8
North Central. 20 24 ra | 203 16 6.8 Tae | 8.2 Ts
EB esneeeee 1s a 29 | 22 2.0 18 mi | 16 aul
Workers, by indt tus
Union ., oe Lg 1.6 2.0 2.1 7.6 7.8 7.6 7.9
Manufacturing . 23 uy | oar 24 8.3 au | aa 8.2
Nonmanufacturing:.... LS 1.5 2.3 1.9 7.0 7.2 762 7.6
Yonunion ... Lz 2.2 | 2.2 Lg 6.6 7a | 79 8.0
. 2:0 22 | 16 13 Ta m6 | 7s 6.8
1.6 saa | 2s 2a 6.2 72 | 8:0 8.6
Metropolitan areas: ..... 7 Le ur | 2a 2.0 6.9 72 | 16 1.8
Other arese ... a ut ewan mae} a7 27 a6 | 8.8 8.7

* Not available

NOTE: Septenber 1978 figures include Alask and Havail for the first time. See preceding Page.


-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 2.0 percent change, shown in the table,
for the "all private nonfarm workers" series in the third quarter of 1978 is the actual percent:
change in straight-tine average hourly ‘earnings from the pay period including the 12th day of the
survey month ‘of June 1978 to: the comparable pay period in September 1978. The 24.8 percent. _
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 September 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 this quarter, wage and. salary:
data for Alaska: and. Hawaii are included in the ECI.- Expansion. of the measure to. cover these
States has virtually no. impact. on the measure at the- published. level of detail, including

statistics for the West. region.


. ; ~2-
volume of output and sales, as well as changes in the rate structure, (See attached description.)

Rates. of increase for white-and: blue-collar workers were: about the same in the third quarter
(1.9 and 2.0 percent, respectively). Within the white-collar group, the salary increase for pro—
fessional: and. technical workers rose 2.1 percent (up from 1.3 percent in the second quarter).
Increased earnings for professionals. in educational services was the main reason for this rise..

Among blue-collar workers, nontransport operatives had an accelerated rise in wages over
the quarter, up 2.0 percent compared with 1.4 percent in the second quarter. The other groups of
blue-collar workers: had: declining rates of increase in. the third quarter. | Pay gains for service.
workers: rose: 2.3 Percent, up from 1.9 percent in the second quarter.

Regionally, workers in the South recorded the largest. third-quarter. gain (2.3 percent).
while those: in the North: Central region had: the: smallest (1.6 percent). Pay for workers in
metropolitan: areas: rose 2.0 percent: compared with 1.7 percent for those in nonmetropolitan areas. ~
September 1977-September 1978

Over: the 12: months: ended? in- September 1978,, service workers" pay increases (9:1 percent)

. outpaced those: for: white-collar: (7.8 Percent) and blue-collar workers: (8.0 percent); and wages:
for: workers: in: nonmanufacturing industries: increased. at a faster rate (8.3 percent) than for
workers in manufacturing. (7.4. percent)... Despite. these differences, increases in the. pay of non—
union workers (8.0' percent): were about the same as for union workers (7.9 percent). By region,
pay gains ranged from 8.8 percent- for workers in the South to 6.8 percent for workers in the
Northeast. Workers in nonmetropolitan: areas: experienced a higher rate of pay increase than

. workers in ‘metropolitan areas--8.7 compared: with 7.8 percent.