Bureau of Labor Statistics Washington, D.C. 20212 

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http://www.bls.gov/ncs/ect/home.htm THURSDAY, JANUARY 29, 2004

EMPLOYMENT COST INDEX—DECEMBER 2003 

Total compensation costs for civilian workers rose 0.7 percent from September to December 2003, 

seasonally adjusted, moderating from the 1.0 percent gain from June to September, the Bureau of Labor 

Statistics of the U.S. Department of Labor reported today. Benefit costs increased 1.2 percent and continued 

to strongly outpace the gain in wages and salaries for civilian workers, 0.5 percent. The Employment Cost 

Index (ECI), a component of the National Compensation Survey, measures quarterly changes in compensation 

costs, which include wages, salaries, and employer costs for employee benefits for nonfarm private and State 

and local government workers. 

Although contributing only 30 percent of total compensation costs, about half of the increase in 

compensation costs was attributable to rises in benefit costs during the September to December 2003 period. 

Among State and local government workers, benefit costs accounted for 53 percent of compensation gains 

during the quarter, with health insurance and defined benefit retirement costs accounting for nearly threequarters of the rise in State and local government benefit costs. Among private industry workers, the pattern 

of compensation gains was similar, with benefit costs attributing 51 percent of compensation gains during the 

September to December period. Health insurance and defined benefit retirement contributions accounted for 

approximately three-fifths of the gain in benefit costs. 

Quarterly changes, seasonally adjusted

Compensation costs for both private sector and State and local government workers rose 0.7 percent 

from September to December. For State and local government workers, the increase in compensation costs 

was the same as in the prior quarter, while the gain for private sector workers had been 1.0 percent in 

September. December gains in private sector compensation costs were led by increases in retail trade and 

services, while private sector compensation gains were less in wholesale trade and in finance, insurance, and 

real estate. (See tables A and 1.) 

Benefit costs advanced 1.2 percent for civilian workers (nonfarm private industry and State and local 

government) in the December 2003 quarter, following a gain of 1.5 percent in the September quarter. Private 

sector benefit costs rose 1.2 percent for the December quarter, following a 1.4 percent gain in the previous 

quarter. Benefit increases for State and local governments slowed to 1.1 percent in the December quarter, 

following a jump of 2.0 percent in September 2003. 

United States 

Department News of Labor 
2 

Wages and salaries for civilian, private, and State and local workers all advanced 0.5 percent during the 

December quarter. This increase was lower than the 0.9 percent increase in private industry wages and salaries 

over the previous quarter. In contrast, in State and local government, this increase was higher compared with 

the modest 0.1 change during the prior quarter. Private sector wage gains were led by service-producing 

industries, especially retail trade and services. Increases in wages and salaries in the private sector were 

slowed by durable manufacturing and finance, insurance, and real estate industries. 

Table A. 3-month percent changes in Employment Cost Index, seasonally adjusted 

 Mar. June Sep. Dec. Mar. June Sep. Dec.

Compensation Component 2002 2002 2002 2002 2003 2003 2003 2003

 Civilian workers

Compensation costs 0.9 1.0 0.8 0.7 1.3 0.9 1.0 0.7 

 Wages and salaries 0.8 0.9 0.6 0.5 1.0 0.6 0.7 0.5 

 Benefit costs 1.0 1.3 1.2 1.3 2.2 1.4 1.5 1.2 

 Private industry

Compensation costs 0.9 1.1 0.6 0.7 1.4 0.8 1.0 0.7 

 Wages and salaries 0.9 0.9 0.4 0.5 1.0 0.6 0.9 0.5 

 Benefit costs 1.1 1.3 1.1 1.2 2.4 1.3 1.4 1.2 

 State and local government 

Compensation costs 0.8 0.9 1.3 1.0 0.9 1.0 0.7 0.7 

 Wages and salaries 0.8 0.8 0.8 0.7 0.7 0.8 0.1 0.5 

 Benefit costs 1.0 1.1 2.2 1.7 1.5 1.3 2.0 1.1 

Over-the-year changes, not seasonally adjusted

Annual compensation costs for civilian workers (not seasonally adjusted) increased 3.8 percent for the 

year ended December 2003, compared with a 3.4 percent over-the-year increase for December 2002. 

Compensation costs in private industry rose 4.0 percent in the year ended December 2003, higher than the 

more modest increase of 3.2 percent in December 2002. In contrast, compensation costs slowed to a 3.3 

percent increase for State and local government for the year ended December 2003, compared with an overthe-year gain of 4.1 percent in December 2002. (See tables B, 2, and 3.) 

The components of compensation continued to show significant differences. While increases in wages 

and salaries slowed, benefit costs rose sharply during the year ended December 2003. For private industry 

workers, wages and salaries rose 3.0 percent in the year ended December 2003, compared with a gain of 6.4 

percent for benefits. Wages and salaries rose a modest 2.1 percent for State and local government workers, 

while benefits increased 6.1 percent for the year ended December 2003. (See tables B, 5, 6, and 8.) 

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

 Dec. Dec. Dec. Dec. Dec. Dec.

Compensation Component 1998 1999 2000 2001 2002 2003

 Civilian workers

Compensation costs 3.4 3.4 4.1 4.1 3.4 3.8 

 Wages and salaries 3.7 3.5 3.8 3.7 2.9 2.9 

 Benefit costs 2.6 3.3 4.9 5.2 5.0 6.3 

 Private industry

Compensation costs 3.5 3.4 4.4 4.2 3.2 4.0 

 Wages and salaries 3.9 3.5 3.9 3.8 2.7 3.0 

 Benefit costs 2.4 3.4 5.6 5.1 4.7 6.4 

 State and local government

Compensation costs 3.0 3.4 3.0 4.2 4.1 3.3 

 Wages and salaries 3.1 3.6 3.3 3.6 3.2 2.1 

 Benefit costs 3.0 2.8 2.4 5.5 6.2 6.1 
3 

Nonfarm private industry

For the year ended December 2003, compensation costs in private industry increased 4.0 percent for 

goods-producing industries, compared with the 3.7 percent advance for the year ended December 2002. 

Compensation costs for manufacturing advanced 4.1 percent in December 2003, after increasing 3.8 percent in 

December 2002. Compensation costs for construction rose 3.4 percent in December 2003, compared with a 

3.2 percent rise in December 2002. (See table 3.) 

The over-the-year increase in compensation for service-producing industries was 4.0 percent, compared 

with the 3.1 percent gain for the year ended December 2002. Among service-producing industries, the 12-

month increase for finance, insurance, and real estate was 7.4 percent for the year ended in December 2003, 

led by a large increase in banking, savings and loan, and other credit agencies. Compensation costs rose 

modestly in wholesale trade, increasing 3.2 percent in the year ended December 2003. 

Over-the-year compensation cost increases were 4.1 percent for white-collar occupations, 4.0 percent for 

blue-collar occupations, and 3.2 percent for service occupations for the year ended December 2003. Among 

white-collar occupational groups, compensation changes ranged from 3.2 for sales workers to 5.2 percent for 

executive, administrative, and managerial employees. Among blue-collar workers, compensation cost 

increases ranged from 3.4 percent for transportation and material moving workers to 4.1 percent for the 

remaining three blue-collar occupational groups. (See table 3.) 

Compensation costs for union workers advanced 4.6 percent over the year ended December 2003, 

compared with a 3.9 percent increase for nonunion workers. Compensation costs among blue-collar union 

workers rose 4.9 percent, higher than the gain of 3.5 percent for blue-collar nonunion workers. In goodsproducing industries, a 5.1 percent increase for union workers was greater than the 3.7 percent advance for 

nonunion workers. (See tables C and 4.) 

Wages and salaries for union workers rose a modest 2.4 percent for the 12 months ended in December 

2003. This compares with an over-the-year increase of 3.1 percent for nonunion workers. In contrast, benefit 

costs for union workers rose sharply, 8.3 percent, greater than the increase of 6.0 percent for nonunion workers 

in December 2003. (See tables C, 7, and 8.) 

Table C. 12-month percent changes in Employment Cost Index, not seasonally adjusted

 Dec. Dec. Dec. Dec. Dec. Dec.

Compensation Component 1998 1999 2000 2001 2002 2003

 Union workers

Compensation costs 3.0 2.7 4.0 4.2 4.2 4.6 

 Wages and salaries 3.3 2.6 3.4 4.4 3.5 2.4 

 Benefit costs 2.5 2.8 5.2 3.7 5.7 8.3 

 Nonunion workers

Compensation costs 3.5 3.6 4.4 4.1 3.2 3.9 

 Wages and salaries 4.0 3.6 4.0 3.6 2.7 3.1 

 Benefit costs 2.4 3.5 5.7 5.4 4.5 6.0 

Among the four geographic regions, increases in compensation costs ranged from 3.1 percent in the 

South to 4.8 percent in the Midwest. Compensation costs rose 4.1 percent in the Northeast and 4.4 percent in 

the West. (See table 4.) 

State and local government

Employer costs for wages and salaries among State and local government workers rose 2.1 percent for 

the year ended December 2003. Wage and salary increases for State and local government workers for years 

ending from December 1982 through December 2002 ranged from 2.7 percent in December 1993 and 

December 1997 to 6.6 percent in December 1982. Benefit costs rose 6.1 percent for the year ended December 

2003. Benefit increases from December 1992 through December 2002 ranged from 1.3 percent in December 

1997 to 6.2 percent in December 2002. 
4 

For the year ended December 2003, compensation costs increased 2.9 percent for educational services, 

slowing from the 3.8 percent gain for the year ended December 2002. Compensation cost gains moderated for 

health services, rising 3.3 percent for the year ended December 2003 compared with a 4.4 percent rise for the 

year ended December 2002. Among occupational groups, compensation costs of service workers rose 4.0 

percent for the year ended December 2003, compared with gains of 3.4 percent for blue-collar workers and 3.1 

percent for white-collar workers. (See tables B, 5, and 8.) 

________________________________________________________________________________________ 

NOTES: 

The new seasonal factors for 2004, along with revised seasonally adjusted indexes for the past five years 

will be available Tuesday, April 27, 2004, on the Internet site http://www.bls.gov/ncs/ect/home.htm, by e-mail 

request ocltinfo@bls.gov, or by telephone (202) 691-6199. The ECI for March 2004 is scheduled to be 

released Thursday, April 29, 2004, at 8:30 a.m. (EDT). 

Supplemental data from the ECI, providing 12-month percent changes in employer costs for health 

insurance in private industry from June 1982 to December 2003, will be available shortly after publication of 

this news release on the Internet site http://www.bls.gov/ect/home.htm or upon request. 

The costs per hour worked of compensation components, based on data from the ECI, were published on 

November 25, 2003, in a news release titled “Employer Costs for Employee Compensation–September 2003.” 

ECI data are available on the Compensation Cost Trends page at http://www.bls.gov/ncs/ect/home.htm. 

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 webmaster@bls.gov. For ECI data 

requests, send e-mail to ocltinfo@bls.gov.

The ECI news release is available through an e-mail subscription service. See the subscription link on 

http://www.bls.gov/ncs/ect/home.htm or http://www.bls.gov/bls/newsrels.htm. 

News releases and other information are available from the BLS fax-on-demand service. To request a 

document fax, call (202) 691-6325. 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 

________________________________________________________________________________________ 
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Chart A. Changes in wages and salaries and in benefit costs, private industry, 1980-2003

12-month percent change

Wages and salaries

Benefits

Chart B. Changes in wages and salaries, private industry and State and local government, 1980-2003

12-month percent change

Chart C. Changes in benefits, private industry and State and local government, 1980-2003

12-month percent change

State and local

government

Private industry

Employment Cost Index

State and local

government

Private industry
6 

Table 1. Employment Cost Index for total compensation1, wages and salaries, and benefit costs by industry and

occupational group 

(Seasonally adjusted data)

Industry and occupational group

Indexes (June

1989=100) Percent changes for 3-months ended–

Sep.

2003

Dec.

2003

Mar.

2002

Jun.

2002

Sep.

2002

Dec.

2002

Mar.

2003

Jun.

2003

Sep.

2003

Dec.

2003

TOTAL COMPENSATION

Civilian workers .............................................. 167.5 168.7 0.9 1.0 0.8 0.7 1.3 0.9 1.0 0.7

State and local government .......................... 165.3 166.4 .8 .9 1.3 1.0 .9 1.0 .7 .7

Private industry ............................................. 168.0 169.2 .9 1.1 .6 .7 1.4 .8 1.0 .7

Industry

Goods producing2 .................................... 166.2 167.1 1.0 1.0 .8 1.0 1.6 1.0 .9 .5

Construction ......................................... 162.3 163.3 .7 .6 .8 1.0 .8 1.1 .8 .6

Manufacturing ....................................... 166.5 167.4 1.0 1.0 .8 1.1 1.8 .9 .8 .5

Durables ........................................... 166.7 167.5 .8 .8 .6 1.1 2.2 .6 .8 .5

Nondurables ..................................... 166.1 167.2 1.2 1.2 1.2 1.0 1.1 1.4 .8 .7

Service producing3 ................................... 168.8 170.2 .9 1.1 .6 .6 1.2 .8 1.1 .8

Transportation and public utilities ......... 166.3 167.3 1.0 1.0 1.1 .9 .7 1.3 .6 .6

Wholesale trade .................................... 172.0 172.3 1.6 2.2 .1 .7 1.7 .5 .8 .2

Retail trade ........................................... 159.8 161.7 -.3 1.3 .4 .4 -.1 .4 1.7 1.2

Finance, insurance, and real estate4 .... 180.2 180.9 2.4 1.3 .4 .3 4.9 .9 1.1 .4

Services ................................................ 170.2 171.7 .9 .7 .6 .6 .8 .8 1.1 .9

Nonmanufacturing .................................... 168.0 169.4 .8 1.1 .6 .6 1.2 .8 1.1 .8

Occupational group

White collar ............................................... 171.1 172.5 .8 1.1 .6 .7 1.4 .7 1.2 .8

Blue collar ................................................. 162.7 163.9 .9 .8 .8 .9 1.3 .9 .9 .7

Service ...................................................... 163.8 164.9 1.0 .7 1.0 .6 1.2 .7 .7 .7

WAGES AND SALARIES

Civilian workers .............................................. 161.5 162.3 .8 .9 .6 .5 1.0 .6 .7 .5

State and local government .......................... 160.7 161.5 .8 .8 .8 .7 .7 .8 .1 .5

Private industry ............................................. 161.7 162.5 .9 .9 .4 .5 1.0 .6 .9 .5

Industry

Goods producing2,4 .................................. 158.3 158.7 .8 .9 .5 .7 .8 .7 .6 .3

Construction ......................................... 153.6 154.1 .5 .6 .7 .9 .3 1.0 .9 .3

Manufacturing4 ..................................... 159.7 160.1 .9 .9 .6 .7 1.0 .6 .4 .3

Durables4 ......................................... 160.6 160.9 .9 .9 .5 .8 1.0 .6 .6 .2

Nondurables ..................................... 158.3 159.1 .8 .9 .9 .8 .5 .8 .4 .5

Service producing3 ................................... 163.2 164.2 .9 .9 .5 .4 1.1 .6 1.1 .6

Transportation and public utilities4 ....... 156.0 156.5 .9 1.1 .9 .5 .5 .5 .3 .3

Wholesale trade .................................... 165.0 165.6 1.7 1.7 .1 .4 1.6 -.1 .8 .4

Retail trade ........................................... 156.2 157.1 -.4 1.1 .3 .3 -.3 .4 1.8 .6

Finance, insurance, and real estate4 .... 174.1 174.5 2.8 1.1 .2 .1 5.2 .8 1.0 .2

Services ................................................ 165.7 166.9 .8 .6 .6 .4 .6 .8 1.0 .7

Nonmanufacturing .................................... 162.0 162.9 .8 .8 .5 .4 1.0 .6 1.1 .6

See footnotes at end of table.
7 

Table 1. Employment Cost Index for total compensation1, wages and salaries, and benefit costs by industry and

occupational group — Continued

(Seasonally adjusted data)

Industry and occupational group

Indexes (June

1989=100) Percent changes for 3-months ended–

Sep.

2003

Dec.

2003

Mar.

2002

Jun.

2002

Sep.

2002

Dec.

2002

Mar.

2003

Jun.

2003

Sep.

2003

Dec.

2003

WAGES AND SALARIES–Continued

Occupational group

White collar ............................................... 165.2 166.2 0.8 0.9 0.5 0.5 1.2 0.6 1.0 0.6

Blue collar4 ............................................... 155.6 156.1 .9 .9 .5 .5 .8 .7 .6 .3

Service4 .................................................... 157.1 157.8 .9 .5 .7 .4 .6 .4 .6 .4

BENEFIT COSTS

Civilian workers .............................................. 182.3 184.5 1.0 1.3 1.2 1.3 2.2 1.4 1.5 1.2

State and local government .......................... 176.2 178.1 1.0 1.1 2.2 1.7 1.5 1.3 2.0 1.1

Private industry ............................................. 183.8 186.0 1.1 1.3 1.1 1.2 2.4 1.3 1.4 1.2

Industry

Goods producing2 .................................... 182.6 184.4 1.2 1.2 1.2 1.5 3.4 1.4 1.5 1.0

Manufacturing ....................................... 181.5 182.9 1.4 1.2 1.3 1.4 4.0 1.3 1.6 .8

Service producing3 ................................... 184.5 186.9 .9 1.5 1.0 1.0 1.8 1.3 1.4 1.3

Nonmanufacturing .................................... 184.9 187.3 1.0 1.3 1.0 1.1 1.9 1.3 1.3 1.3

Occupational group

White collar ............................................... 187.7 189.9 .8 1.4 .9 1.1 2.3 1.0 1.4 1.2

Blue collar ................................................. 178.3 180.4 1.4 1.2 1.3 1.3 2.5 2.1 1.3 1.2

Service ...................................................... 184.1 186.6 1.4 1.1 1.7 1.0 2.7 1.3 1.0 1.4

1 Includes wages, salaries, and employer costs for employee benefits. 2 Includes mining, construction, and manufacturing. 3 Includes transportation, communication, and public utilities; wholesale and

retail trade; finance, insurance, and real estate; and service industries. 4 No identifiable seasonality was found for this series.
8 

Table 2. Employment Cost Index for total compensation1 for civilian and State and local government workers by

industry and occupational group 

(Not seasonally adjusted data)

Industry and occupational group

Indexes (June 1989=100) Percent changes for–

Dec.

2002

Sep.

2003

Dec.

2003

3 months ended– 12 months ended–

Dec.

2002

Sep.

2003

Dec.

2003

Dec.

2002

Sep.

2003

Dec.

2003

Civilian workers ............................................ 162.2 167.6 168.4 0.6 1.1 0.5 3.4 3.9 3.8

Excluding sales occupations .................. 162.2 167.7 168.6 .6 1.1 .5 3.4 4.0 3.9

Industry

Goods producing2 ...................................... 160.2 165.8 166.6 .9 .7 .5 3.8 4.5 4.0

Manufacturing ......................................... 160.5 166.5 167.1 .9 .7 .4 3.8 4.7 4.1

Service producing3 ..................................... 162.8 168.2 169.1 .4 1.2 .5 3.3 3.7 3.9

Services .................................................. 163.9 168.5 169.5 .4 1.3 .6 3.1 3.2 3.4

Health services ................................... 164.5 169.3 170.7 .9 1.0 .8 3.9 3.8 3.8

Hospitals ......................................... 167.6 173.1 174.8 1.1 1.3 1.0 4.8 4.5 4.3

Educational services ........................... 162.8 166.9 167.6 .7 1.6 .4 4.0 3.3 2.9

Public administration4 ............................. 161.7 167.3 168.1 .9 1.8 .5 4.2 4.4 4.0

Nonmanufacturing ...................................... 162.4 167.8 168.6 .4 1.2 .5 3.3 3.8 3.8

Occupational group

White collar ................................................. 164.3 169.9 170.7 .5 1.2 .5 3.4 3.9 3.9

Excluding sales ................................... 164.6 170.3 171.1 .5 1.2 .5 3.4 4.0 3.9

Professional specialty and technical ....... 162.4 167.0 168.0 .6 1.2 .6 3.1 3.5 3.4

Executive, administrative, and

managerial ............................................ 166.7 174.0 174.9 .2 1.2 .5 3.4 4.6 4.9

Administrative support, including

clerical .................................................. 166.1 171.7 172.5 .7 1.0 .5 3.8 4.1 3.9

Blue collar ................................................... 157.5 162.9 163.7 .7 .9 .5 3.6 4.2 3.9

Service ........................................................ 162.2 166.8 167.9 .6 1.1 .7 3.4 3.4 3.5

State and local government ......................... 161.5 165.9 166.8 .9 1.7 .5 4.1 3.6 3.3

Industry

Services .................................................. 160.9 164.9 165.7 .8 1.6 .5 3.9 3.3 3.0

Excluding schools ........................... 162.8 166.8 168.2 1.1 1.6 .8 4.3 3.6 3.3

Health services ................................... 165.5 169.5 171.0 1.2 1.7 .9 4.4 3.7 3.3

Hospitals ......................................... 166.2 170.3 171.4 1.3 1.8 .6 4.5 3.8 3.1

Educational services ........................... 160.3 164.3 165.0 .7 1.6 .4 3.8 3.2 2.9

Schools ........................................... 160.7 164.7 165.3 .7 1.7 .4 3.8 3.2 2.9

Elementary and secondary ......... 158.8 163.0 163.7 .7 1.9 .4 3.7 3.4 3.1

Colleges and universities ............ 165.8 169.2 170.0 .7 1.0 .5 3.9 2.7 2.5

Public administration4 ............................. 161.7 167.3 168.1 .9 1.8 .5 4.2 4.4 4.0

Occupational group

White collar ................................................. 160.7 164.9 165.7 .9 1.7 .5 4.1 3.5 3.1

Professional specialty and technical ....... 159.4 163.4 164.1 .8 1.6 .4 4.0 3.4 2.9

Executive, administrative, and

managerial ............................................ 163.8 168.0 169.1 .9 1.4 .7 3.9 3.5 3.2

Administrative support, including

clerical .................................................. 162.4 167.9 168.5 .9 2.1 .4 4.4 4.3 3.8

Blue collar ................................................... 159.8 163.6 165.2 .9 1.2 1.0 4.3 3.3 3.4

Service ........................................................ 166.3 172.0 173.0 .7 1.8 .6 3.6 4.1 4.0

1 Includes wages, salaries, and employer costs for employee benefits. 2 Includes mining, construction, and manufacturing. 3 Includes transportation, communication, and public utilities;

wholesale and retail trade; finance, insurance, and real estate; service

industries; and public administration. 4 Includes executive, legislative, judicial, administrative, and regulatory

activities of State and local governments, SICs 91 through 96.
9 

Table 3. Employment Cost Index for total compensation1 for private industry workers, by industry and

occupational group 

(Not seasonally adjusted data)

Industry and occupational group

Indexes (June 1989=100) Percent changes for–

Dec.

2002

Sep.

2003

Dec.

2003

3 months ended– 12 months ended–

Dec.

2002

Sep.

2003

Dec.

2003

Dec.

2002

Sep.

2003

Dec.

2003

Private industry workers .............................. 162.3 168.1 168.8 0.4 1.0 0.4 3.2 4.0 4.0

Excluding sales occupations .................. 162.4 168.1 169.0 .5 .9 .5 3.3 4.0 4.1

Industry

Goods producing2 .................................... 160.1 165.7 166.5 .9 .7 .5 3.7 4.5 4.0

Excluding sales ................................... 159.2 165.0 165.9 .8 .7 .5 3.6 4.5 4.2

White collar ............................................. 164.3 170.1 170.5 .9 .5 .2 3.9 4.4 3.8

Excluding sales ................................... 162.3 168.5 169.2 .7 .6 .4 3.7 4.6 4.3

Blue collar ............................................... 157.3 162.9 163.9 .9 .9 .6 3.6 4.5 4.2

Construction ........................................... 157.9 162.3 163.3 1.0 .7 .6 3.2 3.8 3.4

Manufacturing ......................................... 160.5 166.5 167.1 .9 .7 .4 3.8 4.7 4.1

White collar ......................................... 163.3 169.5 169.6 .7 .5 .1 4.1 4.5 3.9

Excluding sales ............................... 160.7 167.4 167.8 .7 .6 .2 3.9 4.9 4.4

Blue collar ........................................... 158.3 164.1 165.1 1.0 .8 .6 3.7 4.7 4.3

Durables ............................................. 160.6 166.6 167.3 1.1 .7 .4 3.4 4.8 4.2

Aircraft manufacturing (SIC 3721) .. 172.3 184.4 182.1 2.1 .4 -1.2 5.4 9.2 5.7

White collar ................................. 165.3 177.5 177.0 1.0 .1 -.3 4.0 8.4 7.1

Blue collar ................................... 182.3 193.9 188.4 3.9 .8 -2.8 7.8 10.5 3.3

Nondurables ....................................... 160.3 166.0 166.6 .7 .7 .4 4.6 4.3 3.9

Service producing3 .................................. 163.1 168.8 169.7 .2 1.1 .5 3.1 3.7 4.0

Excluding sales ................................... 164.0 169.7 170.6 .3 1.0 .5 3.1 3.8 4.0

White collar ............................................. 165.1 171.2 172.0 .2 1.2 .5 3.0 3.9 4.2

Excluding sales ................................... 167.0 173.1 174.2 .3 1.1 .6 3.0 4.0 4.3

Blue collar ............................................... 156.9 162.2 162.6 .2 .9 .2 3.6 3.6 3.6

Service .................................................... 159.3 163.2 164.3 .5 .7 .7 3.3 3.0 3.1

Transportation and public utilities ........... 161.7 166.5 167.0 .6 .7 .3 4.0 3.5 3.3

Transportation .................................... 156.1 159.4 159.6 .5 .3 .1 3.3 2.6 2.2

Public utilities ...................................... 169.2 176.4 177.0 .6 1.3 .3 4.8 4.9 4.6

Communications ............................. 170.1 178.4 179.0 .7 1.7 .3 4.1 5.6 5.2

Electric, gas, and sanitary

services ........................................ 168.1 173.8 174.6 .5 .7 .5 5.7 3.9 3.9

Wholesale and retail trade ...................... 159.7 164.3 165.0 .1 1.1 .4 2.7 2.9 3.3

Excluding sales ............................... 160.4 165.0 165.9 .1 1.4 .5 2.1 2.9 3.4

Wholesale trade .................................. 166.7 172.0 172.0 .5 .4 .0 4.5 3.7 3.2

Excluding sales ............................... 167.2 171.2 171.3 .7 .8 .1 4.1 3.1 2.5

Retail trade ......................................... 155.8 159.9 161.0 -.1 1.6 .7 1.7 2.5 3.3

General merchandise stores .......... 155.1 161.2 165.6 -.6 1.3 2.7 2.8 3.3 6.8

Food stores ..................................... 156.3 159.3 160.3 .0 .4 .6 3.0 1.9 2.6

Finance, insurance, and real estate ....... 168.5 180.2 180.9 .3 1.1 .4 4.5 7.3 7.4

Excluding sales ............................... 173.1 185.3 186.1 .6 .7 .4 4.9 7.7 7.5

Banking, savings and loan, and other

credit agencies ................................. 185.3 207.6 209.0 .4 .6 .7 6.3 12.5 12.8

Insurance ............................................ 167.9 175.1 176.2 .5 .7 .6 4.1 4.8 4.9

Excluding sales ............................... 165.7 172.8 173.7 .4 .6 .5 4.0 4.7 4.8

Services .................................................. 165.4 170.4 171.4 .3 1.2 .6 2.7 3.3 3.6

Business services ............................... 167.5 171.9 172.6 .2 1.6 .4 .8 2.8 3.0

Health services ................................... 164.4 169.4 170.8 .7 .9 .8 3.8 3.8 3.9

Hospitals ......................................... 168.1 173.9 175.9 1.1 1.2 1.2 4.9 4.6 4.6

Nursing homes ............................... – – – .8 .8 .6 4.0 3.6 3.4

Educational services ........................... 175.2 180.2 181.3 1.0 1.8 .6 4.5 3.9 3.5

Colleges and universities ................ 173.7 178.4 179.4 1.0 1.7 .6 3.7 3.7 3.3

See footnotes at end of table.
10 

Table 3. Employment Cost Index for total compensation1 for private industry workers, by industry and

occupational group — Continued

(Not seasonally adjusted data)

Industry and occupational group

Indexes (June 1989=100) Percent changes for–

Dec.

2002

Sep.

2003

Dec.

2003

3 months ended– 12 months ended–

Dec.

2002

Sep.

2003

Dec.

2003

Dec.

2002

Sep.

2003

Dec.

2003

Industry–Continued

Nonmanufacturing industries ................. 162.5 168.1 169.0 0.3 1.0 0.5 3.1 3.8 4.0

White collar ............................................. 165.3 171.2 172.1 .3 1.1 .5 3.0 3.9 4.1

Excluding sales ................................... 167.1 173.2 174.2 .3 1.1 .6 3.0 4.0 4.2

Blue collar ............................................... 155.9 161.1 161.7 .3 .9 .4 3.5 3.7 3.7

Service .................................................... 159.2 163.2 164.2 .5 .7 .6 3.3 3.0 3.1

Occupational group

White collar ............................................... 165.2 171.2 172.0 .4 1.1 .5 3.2 4.0 4.1

Excluding sales ................................... 165.9 172.1 173.0 .4 1.0 .5 3.1 4.1 4.3

Professional specialty and technical ....... 164.4 169.4 170.5 .5 1.0 .6 2.6 3.5 3.7

Executive, administrative, and

managerial ............................................ 167.2 175.0 175.9 .1 1.1 .5 3.3 4.8 5.2

Sales ....................................................... 161.9 167.2 167.1 .2 1.3 -.1 3.3 3.5 3.2

Administrative support, including

clerical .................................................. 166.7 172.3 173.1 .7 .8 .5 3.7 4.0 3.8

Blue collar ................................................. 157.3 162.8 163.6 .6 .9 .5 3.6 4.2 4.0

Precision production, craft, and repair .... 157.8 163.1 164.2 .6 .7 .7 3.5 4.0 4.1

Machine operators, assemblers, and

inspectors ............................................. 156.7 162.6 163.2 .8 .9 .4 3.4 4.6 4.1

Transportation and material moving ....... 151.8 156.7 156.9 .5 1.0 .1 3.8 3.8 3.4

Handlers, equipment cleaners, helpers,

and laborers .......................................... 162.9 168.6 169.5 .9 1.1 .5 4.1 4.5 4.1

Service ....................................................... 159.8 163.8 164.9 .5 .7 .7 3.2 3.0 3.2

Production and nonsupervisory

occupations4 ........................................... 160.5 165.7 166.6 .5 1.0 .5 3.2 3.8 3.8

1 Includes wages, salaries, and employer costs for employee benefits. 2 Includes mining, construction, and manufacturing. 3 Includes transportation, communication, and public utilities;

wholesale and retail trade; finance, insurance, and real estate; and service

industries.

4 This series has the same industry and occupational coverage as the

Hourly Earnings Index, which was discontinued in January 1989.

NOTE: Dashes indicate data not available.
11 

Table 4. Employment Cost Index for total compensation1 for private industry workers, by bargaining status,

region, and area 

(Not seasonally adjusted data)

Bargaining status, region, and area

Indexes (June 1989=100) Percent changes for–

Dec.

2002

Sep.

2003

Dec.

2003

3 months ended– 12 months ended–

Dec.

2002

Sep.

2003

Dec.

2003

Dec.

2002

Sep.

2003

Dec.

2003

Bargaining status

Union ........................................................... 159.5 165.7 166.8 0.9 1.0 0.7 4.2 4.8 4.6

Blue-collar occupations ........................ 156.6 163.1 164.2 .9 1.1 .7 4.4 5.1 4.9

Goods-producing industries2 .................... 157.8 164.7 165.9 1.0 .8 .7 4.0 5.4 5.1

Service-producing industries3 .................. 161.1 166.5 167.5 .8 1.2 .6 4.5 4.1 4.0

Manufacturing ........................................... 157.9 165.0 166.3 1.3 .7 .8 4.3 5.8 5.3

Blue-collar occupations ........................ 157.0 163.7 165.1 1.3 .7 .9 4.0 5.6 5.2

Nonmanufacturing .................................... 159.9 165.5 166.5 .7 1.1 .6 4.2 4.2 4.1

Nonunion ..................................................... 162.8 168.4 169.1 .4 1.0 .4 3.2 3.8 3.9

Blue-collar occupations ........................ 157.7 162.6 163.2 .5 .8 .4 3.1 3.6 3.5

Goods-producing industries2 .................... 160.8 166.1 166.7 .8 .7 .4 3.5 4.1 3.7

Service-producing industries3 .................. 163.3 169.0 169.8 .2 1.1 .5 3.0 3.7 4.0

Manufacturing ........................................... 161.3 166.9 167.3 .7 .7 .2 3.7 4.2 3.7

Blue-collar occupations ........................ 158.8 164.1 164.8 .8 .9 .4 3.5 4.2 3.8

Nonmanufacturing .................................... 162.9 168.5 169.3 .3 1.1 .5 3.0 3.8 3.9

Region4

Northeast ...................................................... 161.3 166.9 167.9 .5 1.0 .6 3.2 4.0 4.1

South ............................................................ 159.0 163.2 163.9 .1 1.0 .4 2.8 2.7 3.1

Midwest ........................................................ 164.6 171.7 172.5 .7 .8 .5 3.8 5.0 4.8

West ............................................................. 165.0 171.4 172.2 .7 1.1 .5 3.5 4.6 4.4

Area

Metropolitan .................................................. 162.5 168.3 169.1 .4 1.0 .5 3.2 4.0 4.1

Other ............................................................. 160.8 166.1 166.9 .5 .7 .5 3.3 3.8 3.8

1 Includes wages, salaries, and employer costs for employee benefits. 2 Includes mining, construction, and manufacturing. 3 Includes transportation, communication, and public utilities;

wholesale and retail trade; finance, insurance, and real estate; and service

industries.

4 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, Mississippi,

North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia,

and West Virginia; Midwest: Illinois, Indiana, Iowa, Kansas, Michigan,

Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and

Wisconsin; and West: Alaska, Arizona, California, 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.
12 

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)

Industry and occupational group

Indexes (June 1989=100) Percent changes for–

Dec.

2002

Sep.

2003

Dec.

2003

3 months ended– 12 months ended–

Dec.

2002

Sep.

2003

Dec.

2003

Dec.

2002

Sep.

2003

Dec.

2003

Civilian workers ............................................ 157.8 161.8 162.3 0.4 0.9 0.3 2.9 2.9 2.9

Excluding sales occupations .................. 157.8 161.7 162.3 .4 .9 .4 2.9 2.9 2.9

Industry

Goods producing1 ...................................... 155.1 158.3 158.7 .8 .5 .3 3.1 2.9 2.3

Manufacturing ......................................... 156.5 159.7 160.1 .7 .4 .3 3.2 2.8 2.3

Service producing2 ..................................... 158.8 163.0 163.6 .3 1.0 .4 2.8 2.9 3.0

Services .................................................. 161.1 164.7 165.4 .2 1.2 .4 2.5 2.5 2.7

Health services ................................... 160.9 164.7 165.9 .8 .9 .7 3.5 3.2 3.1

Hospitals ......................................... 162.2 166.3 167.7 1.2 1.2 .8 4.3 3.7 3.4

Educational services ........................... 160.1 162.7 163.2 .5 1.2 .3 3.2 2.1 1.9

Public administration3 ............................. 155.8 159.4 160.0 .6 .9 .4 2.8 3.0 2.7

Nonmanufacturing ...................................... 158.0 162.1 162.7 .3 1.0 .4 2.7 2.9 3.0

Occupational group

White collar ................................................. 160.1 164.5 165.1 .3 1.0 .4 2.9 3.1 3.1

Excluding sales ................................... 160.7 165.0 165.7 .4 .9 .4 2.9 3.1 3.1

Professional specialty and technical ....... 158.6 161.8 162.5 .4 1.1 .4 2.3 2.4 2.5

Executive, administrative, and

managerial ............................................ 163.8 170.5 171.2 .2 .9 .4 3.6 4.3 4.5

Administrative support, including

clerical .................................................. 160.6 164.3 164.9 .6 .7 .4 3.1 2.9 2.7

Blue collar ................................................... 152.6 155.8 156.3 .5 .6 .3 2.8 2.6 2.4

Service ........................................................ 156.9 159.8 160.6 .4 .7 .5 2.5 2.3 2.4

State and local government ......................... 158.6 161.3 161.9 .6 1.0 .4 3.2 2.3 2.1

Industry

Services .................................................. 159.2 161.6 162.1 .5 1.1 .3 3.2 2.0 1.8

Excluding schools ........................... 160.3 163.2 164.5 .8 .9 .8 3.5 2.6 2.6

Health services ................................... 162.2 165.1 166.7 1.1 1.0 1.0 4.1 2.9 2.8

Hospitals ......................................... 162.5 165.5 166.7 1.2 1.0 .7 4.4 3.1 2.6

Educational services ........................... 158.9 161.2 161.6 .5 1.2 .2 3.2 2.0 1.7

Schools ........................................... 159.0 161.4 161.8 .4 1.2 .2 3.2 2.0 1.8

Elementary and secondary ......... 158.1 160.6 160.9 .4 1.3 .2 3.3 2.0 1.8

Colleges and universities ............ 161.6 163.5 164.0 .6 .9 .3 3.1 1.7 1.5

Public administration3 ............................. 155.8 159.4 160.0 .6 .9 .4 2.8 3.0 2.7

Occupational group

White collar ................................................. 158.4 161.0 161.5 .6 1.1 .3 3.3 2.3 2.0

Professional specialty and technical ....... 158.4 161.0 161.4 .6 1.2 .2 3.3 2.2 1.9

Executive, administrative, and

managerial ............................................ 160.1 162.5 163.3 .7 .9 .5 3.2 2.2 2.0

Administrative support, including

clerical .................................................. 156.0 159.1 159.5 .6 1.2 .3 3.4 2.6 2.2

Blue collar ................................................... 155.1 157.6 158.3 .4 .7 .4 2.9 2.0 2.1

Service ........................................................ 161.2 164.9 165.8 .4 .7 .5 2.4 2.7 2.9

1 Includes mining, construction, and manufacturing. 2 Includes transportation, communication, and public utilities;

wholesale and retail trade; finance, insurance, and real estate; service

industries; and public administration. 3 Includes executive, legislative, judicial, administrative, and regulatory

activities of State and local governments, SICs 91 through 96.
13 

Table 6. Employment Cost Index for wages and salaries for private industry workers by industry and

occupational group 

(Not seasonally adjusted data)

Industry and occupational group

Indexes (June 1989=100) Percent changes for–

Dec.

2002

Sep.

2003

Dec.

2003

3 months ended– 12 months ended–

Dec.

2002

Sep.

2003

Dec.

2003

Dec.

2002

Sep.

2003

Dec.

2003

Private industry workers .............................. 157.5 161.7 162.3 0.3 0.8 0.4 2.7 3.0 3.0

Excluding sales occupations .................. 157.5 161.7 162.4 .3 .7 .4 2.7 3.0 3.1

Industry

Goods producing1 .................................... 155.0 158.3 158.7 .7 .6 .3 3.0 2.9 2.4

Excluding sales ................................... 154.0 157.4 158.0 .7 .6 .4 2.9 2.9 2.6

White collar ............................................. 158.6 161.9 162.1 .7 .3 .1 3.3 2.8 2.2

Excluding sales ................................... 156.3 159.9 160.4 .6 .4 .3 3.0 2.9 2.6

Blue collar ............................................... 152.6 155.9 156.4 .7 .7 .3 2.8 2.9 2.5

Construction ........................................... 150.2 153.6 154.0 .8 .8 .3 2.7 3.1 2.5

Manufacturing ......................................... 156.5 159.7 160.1 .7 .4 .3 3.2 2.8 2.3

White collar ......................................... 158.6 162.0 162.1 .6 .2 .1 3.5 2.7 2.2

Excluding sales ............................... 155.9 159.5 160.0 .6 .4 .3 3.2 2.9 2.6

Blue collar ........................................... 154.7 157.9 158.5 .8 .6 .4 2.9 2.9 2.5

Durables ............................................. 157.3 160.6 160.9 .8 .6 .2 3.1 2.9 2.3

Aircraft manufacturing (SIC 3721) .. 163.1 167.4 167.7 .4 .3 .2 3.0 3.0 2.8

White collar ................................. 156.2 160.3 160.6 .2 .1 .2 2.6 2.8 2.8

Blue collar ................................... 173.2 177.8 178.2 .6 .7 .2 3.5 3.3 2.9

Nondurables ....................................... 155.2 158.3 158.7 .5 .3 .3 3.3 2.5 2.3

Service producing2 .................................. 158.6 163.3 163.9 .1 1.0 .4 2.7 3.1 3.3

Excluding sales ................................... 159.6 164.2 165.0 .2 .9 .5 2.6 3.1 3.4

White collar ............................................. 160.7 166.0 166.6 .1 1.2 .4 2.7 3.4 3.7

Excluding sales ................................... 162.8 168.2 169.0 .2 1.0 .5 2.6 3.5 3.8

Blue collar ............................................... 152.0 155.1 155.4 .1 .5 .2 2.6 2.2 2.2

Service .................................................... 154.1 156.6 157.4 .4 .6 .5 2.6 2.0 2.1

Transportation and public utilities ........... 154.1 156.0 156.5 .5 .3 .3 3.3 1.7 1.6

Transportation .................................... 150.1 150.4 150.8 .3 -.1 .3 3.0 .5 .5

Public utilities ...................................... 159.3 163.4 164.1 .7 .8 .4 3.7 3.3 3.0

Communications ............................. 160.7 165.4 165.9 .7 1.2 .3 3.5 3.6 3.2

Electric, gas, and sanitary

services ........................................ 157.4 161.0 161.8 .6 .4 .5 3.8 2.9 2.8

Wholesale and retail trade ...................... 155.5 159.2 159.5 .0 1.1 .2 2.2 2.4 2.6

Excluding sales ............................... 157.0 160.7 161.3 -.1 1.3 .4 1.6 2.3 2.7

Wholesale trade .................................. 161.0 164.8 165.3 .4 .1 .3 4.0 2.7 2.7

Excluding sales ............................... 163.7 165.7 166.3 .7 .3 .4 3.7 1.9 1.6

Retail trade ......................................... 152.7 156.3 156.5 -.1 1.6 .1 1.3 2.2 2.5

General merchandise stores .......... 149.2 153.1 153.6 -.6 .7 .3 1.8 2.0 2.9

Food stores ..................................... 150.3 152.2 152.8 .1 .4 .4 2.5 1.4 1.7

Finance, insurance, and real estate ....... 162.6 174.1 174.5 .1 1.0 .2 4.2 7.2 7.3

Excluding sales ............................... 167.3 179.2 179.8 .7 .4 .3 5.2 7.9 7.5

Banking, savings and loan, and other

credit agencies ................................. 183.9 209.1 210.2 .7 .2 .5 7.1 14.4 14.3

Insurance ............................................ 159.1 163.9 164.5 -.3 .6 .4 2.6 2.7 3.4

Excluding sales ............................... 155.9 160.4 160.7 .0 .5 .2 3.1 2.9 3.1

Services .................................................. 161.7 165.9 166.7 .1 1.2 .5 2.2 2.7 3.1

Business services ............................... 164.8 169.1 169.8 .1 1.6 .4 .7 2.7 3.0

Health services ................................... 160.7 164.6 165.8 .8 .9 .7 3.4 3.2 3.2

Hospitals ......................................... 162.1 166.5 167.9 1.2 1.2 .8 4.3 3.9 3.6

Nursing homes ............................... – – – .9 .7 .6 4.1 3.1 2.8

Educational services ........................... 166.5 170.3 171.0 .8 1.6 .4 3.7 3.1 2.7

Colleges and universities ................ 164.3 167.6 168.4 .7 1.5 .5 2.9 2.8 2.5

See footnotes at end of table.
14 

Table 6. Employment Cost Index for wages and salaries for private industry workers by industry and

occupational group — Continued

(Not seasonally adjusted data)

Industry and occupational group

Indexes (June 1989=100) Percent changes for–

Dec.

2002

Sep.

2003

Dec.

2003

3 months ended– 12 months ended–

Dec.

2002

Sep.

2003

Dec.

2003

Dec.

2002

Sep.

2003

Dec.

2003

Industry–Continued

Nonmanufacturing industries ................. 157.5 162.1 162.6 0.2 1.0 0.3 2.6 3.1 3.2

White collar ............................................. 160.5 165.7 166.3 .2 1.1 .4 2.6 3.4 3.6

Excluding sales ................................... 162.5 167.7 168.5 .2 1.0 .5 2.7 3.5 3.7

Blue collar ............................................... 150.2 153.4 153.8 .3 .7 .3 2.6 2.4 2.4

Service .................................................... 154.0 156.5 157.3 .4 .6 .5 2.6 2.0 2.1

Occupational group

White collar ............................................... 160.4 165.3 165.9 .3 .9 .4 2.8 3.3 3.4

Excluding sales ................................... 161.3 166.2 167.0 .3 .8 .5 2.8 3.4 3.5

Professional specialty and technical ....... 158.5 162.1 163.0 .2 1.0 .6 1.7 2.5 2.8

Executive, administrative, and

managerial ............................................ 164.5 171.8 172.5 .1 .9 .4 3.7 4.6 4.9

Sales ....................................................... 156.8 161.6 161.1 -.1 1.4 -.3 2.8 3.0 2.7

Administrative support, including

clerical .................................................. 161.3 165.1 165.7 .6 .7 .4 3.1 3.0 2.7

Blue collar ................................................. 152.4 155.6 156.1 .5 .6 .3 2.8 2.6 2.4

Precision production, craft, and repair .... 152.3 155.5 156.2 .3 .5 .5 2.6 2.4 2.6

Machine operators, assemblers, and

inspectors ............................................. 153.2 156.8 156.9 .8 1.0 .1 2.8 3.2 2.4

Transportation and material moving ....... 146.9 149.8 149.8 .4 .5 .0 2.9 2.4 2.0

Handlers, equipment cleaners, helpers,

and laborers .......................................... 157.2 159.9 160.6 .8 .6 .4 3.1 2.5 2.2

Service ....................................................... 154.5 157.1 157.8 .4 .6 .4 2.6 2.1 2.1

Production and nonsupervisory

occupations3 ........................................... 155.2 158.8 159.4 .3 .9 .4 2.4 2.7 2.7

1 Includes mining, construction, and manufacturing. 2 Includes transportation, communication, and public utilities;

wholesale and retail trade; finance, insurance, and real estate; and service

industries.

3 This series has the same industry and occupational coverage as the

Hourly Earnings Index, which was discontinued in January 1989.

NOTE: Dashes indicate data not available.
15 

Table 7. Employment Cost Index for wages and salaries for private industry workers by bargaining status,

region, and area 

(Not seasonally adjusted data)

Bargaining status, region, and area

Indexes (June 1989=100) Percent changes for–

Dec.

2002

Sep.

2003

Dec.

2003

3 months ended– 12 months ended–

Dec.

2002

Sep.

2003

Dec.

2003

Dec.

2002

Sep.

2003

Dec.

2003

Bargaining status

Union ........................................................... 152.5 155.3 156.2 0.8 0.6 0.6 3.5 2.6 2.4

Blue-collar occupations ........................ 149.6 152.8 153.5 .8 .8 .5 3.4 3.0 2.6

Goods-producing industries1 .................... 151.2 154.8 155.4 .8 .6 .4 3.3 3.2 2.8

Service-producing industries2 .................. 154.1 156.3 157.3 .8 .8 .6 3.5 2.2 2.1

Manufacturing ........................................... 153.1 156.7 157.1 1.0 .5 .3 3.4 3.4 2.6

Blue-collar occupations ........................ 151.8 155.2 155.8 1.0 .5 .4 3.3 3.3 2.6

Nonmanufacturing .................................... 152.1 154.6 155.6 .7 .7 .6 3.4 2.3 2.3

Nonunion ..................................................... 158.5 163.0 163.4 .3 .9 .2 2.7 3.1 3.1

Blue-collar occupations ........................ 154.2 157.5 157.8 .3 .6 .2 2.5 2.5 2.3

Goods-producing industries1 .................... 156.6 159.7 160.1 .7 .5 .3 3.0 2.7 2.2

Service-producing industries2 .................. 159.0 164.0 164.5 .1 1.0 .3 2.5 3.2 3.5

Manufacturing ........................................... 157.8 160.9 161.3 .6 .4 .2 3.1 2.6 2.2

Blue-collar occupations ........................ 156.8 159.8 160.4 .7 .7 .4 2.8 2.6 2.3

Nonmanufacturing .................................... 158.3 163.1 163.7 .1 1.0 .4 2.5 3.2 3.4

Region3

Northeast ...................................................... 155.7 160.0 160.9 .4 1.0 .6 2.6 3.2 3.3

South ............................................................ 154.6 157.4 157.9 -.1 .8 .3 2.2 1.7 2.1

Midwest ........................................................ 160.2 166.1 166.5 .6 .7 .2 3.6 4.3 3.9

West ............................................................. 160.1 164.7 165.2 .5 1.0 .3 2.6 3.4 3.2

Area

Metropolitan .................................................. 157.9 162.2 162.7 .3 .9 .3 2.7 3.0 3.0

Other ............................................................. 154.8 158.9 159.5 .7 .6 .4 2.9 3.3 3.0

1 Includes mining, construction, and manufacturing. 2 Includes transportation, communication, and public utilities;

wholesale and retail trade; finance, insurance, and real estate; and service

industries.

3 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, Mississippi,

North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia,

and West Virginia; Midwest: Illinois, Indiana, Iowa, Kansas, Michigan,

Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and

Wisconsin; and West: Alaska, Arizona, California, 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.
16 

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)

Industry, occupational group, and

bargaining status

Indexes (June 1989=100) Percent changes for–

Dec.

2002

Sep.

2003

Dec.

2003

3 months ended– 12 months ended–

Dec.

2002

Sep.

2003

Dec.

2003

Dec.

2002

Sep.

2003

Dec.

2003

Civilian workers .......................................... 173.3 182.8 184.3 0.9 1.6 0.8 5.0 6.5 6.3

State and local government ........................ 168.2 176.9 178.5 1.4 3.1 .9 6.2 6.7 6.1

Private industry ........................................... 174.6 184.3 185.8 .9 1.3 .8 4.7 6.5 6.4

Industry

Goods producing1 .................................. 171.0 182.3 183.8 1.3 1.2 .8 5.2 8.0 7.5

Service producing2 ................................. 175.9 184.7 186.2 .6 1.3 .8 4.5 5.6 5.9

Manufacturing ......................................... 168.9 181.1 182.3 1.3 1.2 .7 5.3 8.6 7.9

Aircraft manufacturing (SIC 3721) ...... 192.4 221.4 213.4 5.4 .5 -3.6 10.3 21.2 10.9

White collar ..................................... 187.0 218.7 216.3 2.6 .2 -1.1 6.9 20.0 15.7

Blue collar ....................................... 199.3 224.0 207.5 9.6 1.0 -7.4 15.6 23.2 4.1

Nonmanufacturing .................................. 176.3 185.1 186.7 .6 1.3 .9 4.4 5.7 5.9

Occupational group

White collar ............................................. 178.5 187.7 189.2 .7 1.2 .8 4.3 5.9 6.0

Blue collar ............................................... 167.8 178.4 179.9 1.0 1.3 .8 5.4 7.3 7.2

Service .................................................... 174.9 184.1 186.4 .9 1.1 1.2 5.4 6.2 6.6

Bargaining status

Union ...................................................... 172.7 185.4 187.1 1.1 1.5 .9 5.7 8.5 8.3

Nonunion ................................................ 174.7 183.7 185.1 .7 1.2 .8 4.5 5.9 6.0

1 Includes mining, construction, and manufacturing. 2 Includes transportation, communication, and public utilities; 

 

wholesale and retail trade; finance, insurance, and real estate; and service

industries. 
17 

EXPLANATORY NOTES

The Employment Cost Index (ECI) is a measure of the change in the cost of labor, free from the 

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 ECI 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, and nonproduction bonuses (such as referral bonuses and lumpsum 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 plans; legally 

required benefits—Social Security, Medicare, 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 nonfarm economy 

excluding households and the public sector excluding 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 36,200 occupational 

observations within about 8,300 sample establishments in private industry and approximately 3,600

occupations within about 800 sample establishments in State and local governments. Data are collected for 

the pay period including the 12th day of the survey months of March, June, September, and December. 

The sampled establishments are classified by industry categories based on the 1987 Standard Industrial 

Classification (SIC), as defined by the U.S. Office of Management and Budget. Details on the sample design 

are included in the bulletin, Employment Cost Indexes, 1975-99, (Bulletin 2532). Within an establishment, 

specific job categories are selected and classified into about 500 occupational classifications according to the 

1990 Census of Population. Individual occupations are combined into broader occupational groups. Fixed 

employment weights are used each quarter to calculate the most aggregate series—civilian, private, and State 

and local government. These fixed weights are also used to derive all of the industry and occupation series 

indexes. Since March 1995, 1990 employment counts, primarily from the Bureau’s Occupational 

Employment Statistics survey, have been used. For more information on these topics, see the articles, 

“Introducing New Weights for the Employment Cost Index,” in the June 1985 issue of the Monthly Labor 

Review and “Introducing 1990 Weights for the Employment Cost Index” in the June 1995 issue of 

Compensation and Working Conditions. 

For the series based on bargaining status, region, and area size, employment data are not available. 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, "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 identify. For more information on the methodology 

used to seasonally adjust ECI series, see the bulletin, Employment Cost Indexes, 1975-99, (Bulletin 2532). 

The seasonal adjustment factors are recalculated once a year. The March release contains data reflecting the 
18 

newly updated seasonal adjustment factors. The historical data for the last five years are then revised based on 

the newly estimated factors. The seasonal factors for 2003 and revised seasonally adjusted indexes for the past 

five years are available on the Internet site (http://www.bls.gov/ncs/ect/home.htm) or upon request. 

The ECI sample is rotated over approximately five years, which makes the sample more representative 

and reduces respondent burden. The sample is replaced on a cross-area, cross-industry basis. 

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 one 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. 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. To assist users in ascertaining the reliability of series, the fiveyear moving average of standard errors for all estimates (excluding seasonally adjusted series) will be 

available on the Internet site (http://www.bls.gov/ncs/ect/home.htm) shortly after publication of the news 

release. 

When determining data to be used in contract negotiations, it is important to note that differences by 

bargaining status may be due to factors other than union 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. An important consideration when choosing a 

series for escalation is the number of workers covered. Series with smaller numbers of workers may have 

larger sampling errors or be dominated by a smaller number of employers. For more information, see the web 

site: (http://www.bls.gov/ect/escalator.htm). 

More detailed information on the ECI is available from several sources. These include an historical 

bulletin—Employment Cost Indexes, 1975-99, (Bulletin 2532), a chapter, “National Compensation 

Measures,” in the BLS Handbook of Methods (Bulletin 2490), and several articles published in the Monthly 

Labor Review and Compensation and Working Conditions. The 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) 691-6199 or sending e-mail to 

(ocltinfo@bls.gov). Current and historical data are available at the web site: 

(http://www.bls.gov/ncs/ect/home.htm). 

The costs per hour worked of compensation components, based on data from the ECI, were recently 

published in a separate news release titled "Employer Costs for Employee Compensation–September 2003." 

Historical data and related articles are included in the bulletin, Employer Costs for Employee Compensation, 

1986-99, (Bulletin 2526). An annual historical summary from March 1986 through March 2002 is also 

available on the Internet site (http://www.bls.gov/ncs/ect/home.htm) or upon request. Data are also available 

on a quarterly basis beginning with June 2002 data. The December 2003 data are expected to be published in 

February 2004. The cost levels 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 usually differ from 

those in the ECI. 

Information in this release will be made available to sensory impaired individuals upon request. Voice 

phone: (202) 691-5200; Federal Relay Service Number: 1-800-877-8339.