14

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

region, and area

(Not seasonally adjusted data)
Indexes (June 1989=100) Percent changes for—
ai i 3 months ended— 12 months ended—
Bargaining status, region, and area Mar. Dec. Mar.
1999 1999 2000 Mar, Dec. Mar. Mar. Dec. Mar.
1999 1999 2000 1999 1999 2000
Bargaining status
Union 133.6 136.5 137.2 0.4 0.6 0.5 3.1 26 27
Blue-collar occupations 131.2 134.5 | 135.2 5 7 5 31 3.0 3.0
Goods-producing industries* 132.3 136.1 137.2 5 9 8 34 3.3 3.7
Service-producing industries? 135.4 137.2 | 137.6 4 3 3 27 18 1.6
Manufacturing .. 133.6 | 137.5 | 138.8 5 1.3 a) 34 34 3.9
Blue-collar occupations. 133.0 | 136.8 | 137.8 5 13 7 34 3.3 3.6
Nonmanufacturing . 133.7 | 135.9 | 136.4 5 2 4 3.2 21 2.0
Nonunion .. 139.0 143.3 | 145.1 5 2 1.3 3.3 3.6 44
Blue-collar occupations 136.2 139.7 | 141.4 1.0 7 1.2 3.2 3.6 3.8
Goods-producing industries! 137.8 141.1 142.9 1.0 8 1.3 34 34 3.7
Service-producing industries? 139.3 | 143.9 | 145.8 4 a) 1.3 3.5 37 47
Manufacturing .. 139.4 142.9 144.4 a) 8 1.0 3.2 34 3.6
Blue-collar occupations 138.5 141.6 142.8 a 8 8 3.4 3.2 3.1
Nonmanufacturing .. 138.6 143.0 | 145.0 4 8 1.4 3.4 3.6 46
Region
137.1 140.9 | 142.3 5 7 1.0 3.4 3.3 3.8
137.9 141.5 143.0 a) 9 Ww 29 3.5 37
138.9 143.6 | 145.3 7 8 1.2 3.1 44 46
138.2 142.6 | 144.7 aa g 15 4.0 3.0 47
138.3 | 142.5 | 144.1 4 9 11 34 3.5 42
137.1 140.2 | 142.2 8 3 1.4 3.5 3.4 37

1 Includes mining, construction, and manufacturing.

2 Includes transportation, communication, and public utilities;
wholesale and retail trade; finance, insurance, and real estate; and service
indystries.

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

;; Midwest: Ilinois, Indiana, lowa, Kansas, Michigan,

Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and
Wisconsin; and West: Alaska, Arizona, Califomia, 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.


5

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

occupational group

(Seasonally adjusted data)
Indexes (June PR t che for 3-months end.
1989=100) ercent changes for 3-m led—
Industry and occupational group
Dec. Mar. June Sep. Dec. Mar. June Sep. Dec. Mar.
1999 2000 1998 1998 1998 1999 1999 1999 1999 2000
TOTAL COMPENSATION
Civilian workers .... 144.4 | 146.4 0.9 0.9 06 05 11 0.8 1.0 14
State and local government 144.2 | 145.4 7 8 6 6 ze] 8 14 8
Private industry ... 144.5 | 146.6 8 14 6 4 14 9 1.0 15
Industry
Goods producing? 142.6 | 144.9 8 7 5 8 6 eS) 1 16
Constructions . 139.0 | 141.0 1.3 5 141 a 7 7 1.0 14
Manufacturing 143.6 | 145.9 7 8 4 7 7 a) Vt 1.6
Durables 143.9 | 146.6 6 8 4 6 7 ao 1 19
Nondurables .. 143.0 | 144.7 7 8 5 7 7 a 1.0 12
Service producing ... 145.4 | 147.4 9 1.2 7 3 1.3 9 1.0 14
Transportation and public Utilities 142.4 | 143.8 12 9 7 a 1.0 5 5 1.0
Wholesale trade? 148.6 | 150.1 5 1.7 15 “A 1.2 1.2 1.6 1.0
Retail trade ... 141.1 143.4 8 1.0 2 8 14 5 V1 16
Finance, insurance, and real
estate3.6 148.3 | 152.0 12 1.9 11 <7 3.0 12 5 25
Services 1475 149.4 8 9 6 6 8B 9 1.0 13
Nonmanufacturing .... 144.6 | 146.8 9 1.2 7 4 Ww 8 1.0 15
Occupational group
White collar .. 146.9 149.3 ag Ww 7 3 1.3 a 1.0 16
Blue collar 140.6 | 142.7 8 7 7 7 8 a 9 15
Service .. 142.2 | 143.4 5 1.0 6 1.0 8 3 Ww 8
WAGES AND SALARIES
Civilian workers .... 142.4 | 144.0 a 1 7 5 12 9 9 an!
State and local government 144.4 7 7 8 7 ao 9 1.0 9
Private industry ... 142.2 | 143.9 a) 1.2 7 4 1.2 Q 9 12
Industry
Goods producing2 . 139.7 | 1413 ) 8 7 8 7 ) 9 14
Construction’ .. 133.9 | 136.3 1.3 2 Vt Ww 5 8 9 18
Manufacturing® ... 144.5 | 142.9 7 1.0 6 8 8 9 9 1.0
DurablesS ... 144.8 | 143.0 8 1.0 7 7 a) 9 1.0 8
Nondurables .. 144.0 | 142.5 6 1.0 6 7 7 8 9 1
Service producing$ ... 143.3 | 145.0 a 1.4 7 3 14 a 3 1.2
Transportation and public utilities> | 137.9 | 138.4 8 a) 7 a 1.3 3 4 4
Wholesale trade? 147.6 5 1.5 14 =A 11 13 15 9
Retail trade ..... 139.9 | 142.3 8 14 1 1.0 1.2 A a 17
Finance, insurance, and real
estate, 145.2 | 148.7 17 24 1.2 1.9 3.8 15 5 24
Services 145.9 | 147.3 9 12 6 9 8 8 1.0 1.0
Nonmanufacturing .... 142.2 | 143.9 1.0 1.3 8 3 1.4 8 a 1.2

See footnotes at end of table.


18

BLS is evaluating ECI publication standards as part of its overall quality improvement plan. The first
phase of this evaluation, a review of the statistical reliability of the ECI series, is complete. To improve the
quality of the ECT estimates, the sample size is being increased and other initiatives, such as revising
collection procedures, are being explored. All series will continue to be published until further notice,
although standard errors for some series are large. The five-year moving average of standard errors for all
estimates (excluding seasonally adjusted series) will be available on the Intemet site
(http://stats.bls.gov/ecthome.htm) shortly after publication of the news release.

When comparing data by bargaining status, it is important to note that differences may be due to factors
other than bargaining 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.

More detailed information on the ECI is available from several sources. These include annual bulletins--
Employment Cost Indexes and Levels, 1975-98, (Bulletin 2514), a chapter in the BLS Handbook of Methods
(Bulletin 2490), "National Compensation Measures,” and several articles published in the Monthly Labor
Review and Compensation and Working Conditions. The annual bulletins are 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 email to
(ocltinfo@bls.gov). Current and historical data are available at the web site:
(http://stats.bls.gov/ecthome.htm).

Information in this release will be made available to sensory impaired individuals upon request. Voice
phone: (202) 691-5886; Federal Relay Service number: 1-800-877-8339.


10

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

region, and area

(Not seasonally adjusted data)
Indexes (June 1989=100) Percent changes for—
a 7 3 months ended— 12 months ended—
Bargaining status, region, and area Mar. Dec. Mar.
1999 | 1999 | 2000 Mar. Dec. Mar. Mar. Dec. Mar.
1999 1999 2000 1999 1999 2000
Bargaining status
Union ..... 138.0 | 141.2 143.0 0.4 07 1.3 3.0 27 3.6
Blue-collar occupations 135.6 | 138.9 144.4 2 8 1.6 29 27 44
Goods-producing industries? 136.8 | 140.8 143.3 2 Wt 18 3.1 3.2 48
Service-producing industries? 139.2 | 141.4 142.5 5S 3 8 29 24 24
Manufacturing 137.0 | 141.0 144.5 a 1.4 25 25 3.0 5.5
Blue-collar ipat 136.5 | 140.4 143.9 a 14 25 26 29 5.4
Nonmanufacturing ... 138.1 140.8 141.7 5 4 6 34 25 26
Nonunion .. 140.8 145.2 147.4 5 1.0 15 3.0 3.6 47
Blue-collar occupations 137.6 | 141.4 143.4 1.0 8 14 28 3.7 42
Goods-producing industries? 139.7 | 143.1 145.4 1.0 9 1.6 28 3.5 41
Service-producing industries? 144.4 145.7 148.0 A 9 1.6 3.2 3.6 49
140.7 144.4 | 146.5 9 1.0 1.5 26 35 41
139.5 | 142.9 144.4 eo) 2 1.0 26 3.3 3.5
140.6 145.1 147.4 4 9 1.6 3.2 3.6 48
Region4
140.5 | 144.3 | 146.3 7 8 14 3.3 3.4 44
139.1 143.0 145.0 7 8 1.4 27 3.5 42
141.7 146.3 148.9 2 9 18 25 3.5 5.1
140.3 | 144.7 | 147.0 2 1.0 1.6 3.8 3.4 48
140.4 | 144.7 146.9 4 1.0 15 29 3.5 46
140.5 | 143.6 146.0 8 3 17 3.4 3.0 3.9

1 includes wages, salaries, and employer costs for employee benefits.

Includes mining, construction, and manufacturing.

Inciudes 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, Dis
of Columbia, Florida, Georgia, Kentucky, Louisiana, Maryland, Mi
North Carolina, Oklahoma, South Carolina, Tennessee, Texas,

and West Virginia; Midwest: llinois, Indiana, lowa, Kansas, Michigan,
Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and
Wisconsin; and West: Alaska, Arizona, Califomia, 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.


7

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

industry and occupational group

(Not seasonally adjusted data)

Indexes (June 1989=100) Percent changes for—
: 3 months ended— 12 months ended—
Industry and occupational group Mar. Dec, Mar.
1999 1999 2000 Mar. Dec. Mar. Mar, Dec. Mar.
1999 1999 2000 1999 1999 2000
Civilian workers 140.4 | 1446 | 146.5 04 09 1.3 3.0 3.4 43
Excluding sales occupations 140.5, 144.5 146.3 7 a) 1.2 3.0 3.6 41
Industry
Goods producing? . 139.0 | 142.5 | 144.9 8 sc) 17 29 3.3 42
Manufacturing .. 139.9 | 143.6 | 146.0 7 14 V7 26 3.4 44
Service producing 140.9 145.3 147.1 4 a 1.2 3.0 3.5 44
Services .... 142.3 | 146.5 | 148.0 4 1.0 1.0 29 3.4 4.0
Health services 140.5 | 144.3 | 145.9 1.0 1 141 1.8 37 3.8
Hospitals .. 141.3 | 145.0 | 146.3 8 1A a9 3.1 3.4 3.5
Educational services .. 141.3 | 145.8 | 146.5 2 8 5 28 3.4 3.7
Public administration4 140.8 | 144.4 | 145.7 6 1.4 zc) 3.2 3.2 3.5
Nonmanufacturing .. 140.5 | 144.7 | 146.6 A 9 1.3 3.2 3.4 43
Occupational group
White collar ... 141.9 | 146.3 | 148.4 A a 14 3.4 3.5 46
Excluding sales 142.2 | 146.4 | 148.3 7 9 1.3 3.0 37 43
Professional specialty and technical 141.3 | 145.3 | 146.7 2 1.0 1.0 28 3.0 3.8
Executive, administrative, and manager 143.5 | 148.6 | 150.5 12 2 13 3.2 48 49
Administrative support, including clerical 1425 | 146.1 148.6 8 1.0 17 3.3 3.4 43
Blue collar 137.1 140.6 | 142.7 7 8 15 29 3.3 44
Service ... 141.3 | 144.8 | 146.0 9 1.2 8 3.2 3.4 3.3
State and local government ... 140.5 | 144.6 | 145.5 5 1.0 6 29 34 3.6
Industry
140.0 | 144.5 | 145.2 2 9 5 2.6 34 37
139.6 | 143.8 | 145.2 6 8 1.0 26 3.6 4.0
Health services 141.2 | 145.8 | 147.3 4 Wa 1.0 24 3.6 43
Hospitals .. 141.7 | 146.3 | 147.9 4 1.0 14 24 3.6 44
Educational services .. 139.9 | 144.4 | 145.0 2 9 4 2.6 3.4 3.6
Schools .... 140.2 | 144.7 | 145.3 2 8 4 26 3.4 3.6
Elementary and secondary 139.6 144.1 144.5 2 8 3 2.6 3.4 3.5
Colleges and universities 141.7 | 146.5 | 147.4 A 12 6 28 3.5 4.0
Public administration( .... 140.8 | 144.4 | 145.7 6 14 a 3.2 3.2 3.5
Occupational group

White collar ... 139.8 | 144.0 | 144.9 4 1.0 6 27 3.4 3.6
Professional specialty and technical 138.8 | 143.2 | 144.1 2 8 6 24 3.4 38
Executive, administrative, and managerial 142.6 | 146.1 147.0 7 Ww 6 37 3.2 34
Administrative support, including clerical 141.4 | 145.0 | 145.9 8 14 6 3.3 34 3.2
138.8 | 142.5 | 143.7 7 qt 8 28 3.4 3.5
144.3 | 148.6 | 149.5 6 1.3 6 35 3.6 3.6

1 includes wages, salaries, and employer costs for employee benefits.

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.

Includes executive, legislative, judicial, administrative, and regulatory
activities of State and local governments, SIC’s 91 through 96.

5 Average standard errors (SE) for the series exceed 0.3 percent for
3-month changes and 0.6 percent for 12-month changes for the five years
‘ending December 1996. To assist users in ascertaining the reliability of the
series, SEs for estimates in this news release (excluding seasonally adjusted
series) will be available on the Intemet site (http://stats.bls.gov/ecthome.htm).
Ail series will continue to be published until further notice.

Formerly called hospitals and other services.


6

Table 1. Employment Cost index for total compensation’, wages and salaries, and benefit costs by industry and
occupational group — Continued

(Seasonally adjusted data)

indexes (June
1989-100) Percent changes for 3-months ended—
Industry and occupational group
Dec. Mar. June Sep. Dec. Mar. June Sep. Dec. Mar.
1999 2000 1998 1998 1998 1999 1999 1999 1999 2000
WAGES AND SALARIES-Continued
Occupational group
White collar .. 144.8 | 146.7 1.0 1.4 0.7 0.4 1.2 0.9 1.0 13
Blue collaré . 137.7 | 139.1 8 8 6 8 1.0 a 7 1.0
Service .. 139.6 | 141.0 7 Ww 7 1.0 8 a 1.2 1.0
BENEFIT COSTS
Civilian workers ..... 149.3 | 152.3 7 7 6 3 1.0 8 1.2 2.0
State and local government 146.6 | 148.0 7 9 6 5 6 4 12 1.0
Private industry .... 149.9 | 153.4 7 6 6 3 1.0 1.0 Ww 2.3
Industry
Goods producing? .. 148.3 | 152.3 6 4 2 7 6 8 1.4 27
Manufacturing 147.8 | 152.3 5 3 0 6 6 1.0 1.4 3.0
Service producing? .... 150.9 | 153.9 8 7 8 1 1.3 so) 11 2.0
Nonmanufacturing .. 150.7 154.0 8 7 7 3 1.2 9 9 22
Occupational group
White collar 152.5 | 156.3 6 7 5 3 1.0 14 1.0 25
Blue collar 146.1 150.3 7 4 4 7 7 8 1.0 29
Service ... 150.1 150.7 2 8 2 8 a 5 1.2 4
7 includes wages, salaries, and employer costs for employee benefits. Internet site (http//stats.bls.gov/ecthome.htm). All series will continue to be
Includes mining, construction, and manufacturing. published until further notice.
Average standard errors (SE) for the unadjusted series upon which this 4 Includes transportation, communication, and public utilities; wholesale
series is based exceeded 0.3 percent for 3-month changes and 0.6 percent —_and retail trade; finance, insurance, and real estate; and service industries.
for 12-month changes for the five years ending December 1996. To assist 5 Estimates for transportation and public utilities reflect the changes in

users in ascertaining the reliability of the series, SEs for estimates in this SIC.coding. See Explanatory Notes for further information.
news release (excluding seasonally adjusted series) will be available on the 6 No identifiable ‘Seasonality was found for this series,


9

Table 3. Employment Cost Index for total compensation’ for private industry workers, by industry and occupational
group — Continued

(Not seasonally adjusted data)
Indexes (June 1989=100) Percent changes for—
" 3 months ended— 12 months ended—
Industry and occupational group Mar. Dec. Mar.
1999 1999 2000 Mar. Dec. Mar. Mar. Dec. Mar.
1999 1999 2000 1999 1999 2000
Industry-Continued
Nonmanufacturing industries .. 140.3 | 144.5 | 146.7 0.4 08 15 3.2 3.4 4.6
White collar .. 142.3 | 146.9 | 149.2 2 a 1.6 3.2 3.5 48
143.7 | 148.1 150.2 7 9 1.4 3.2 3.8 45
135.2 | 138.7 | 140.6 9 5 1.4 3.2 3.5 4.0
139.2 | 142.3 | 143.5 Wt Ww 8 3.2 3.3 34
Occupational group
White collar 142.4 | 146.9 | 149.3 3 a) 1.6 341 35 48
fi 143.0 147.3 149.4 8 9 1.4 3.0 3.8 45
142.9 | 146.7 | 148.4 2 1.0 1.2 3.0 29 3.8
Executive, administrative, and managerial 143.7 | 149.1 181.1 1.3 2 1.3 34 54 5.1
Sales3 139.6 | 145.3 | 148.9 24 8 25 3.2 1.9 6.7
Administrative support, including
clerical .... 142.6 146.2 149.0 8 8 1.9 3.2 3.4 45
Blue collar ... 136.9 | 140.5 | 142.6 7 8 1.5 2.9 33 42
Precision production, craft, and repail 137.2 | 140.6 | 142.3 8 7 1.2 3.2 3.3 37
Machine operators, assemblers, and
inspectors .. 137.3 | 141.4 | 144.0 4 V4 1.8 28 3.4 49
Transportation and material moving .. 131.6 135.2 137.5 7 6 1.7 1.8 3.4 45
Handlers, equipment cleaners, helpers, and
laborers ... 141.0 | 144.4 | 146.4 1.3 8 1.4 2.9 37 3.8
Service .. 139.5 142.6 143.9 14 11 a 3.1 3.3 3.2
Production and nonsupervisory
occupations ... 139.3 | 143.1 145.3 2 8 15 3.0 29 43
1 Includes wages, salaries, and employer costs for employee benefits. and retail trade; finance, insurance, and real estate; and service industries.
Includes mining, construction, and manufacturing. 5 Estimates for transportation and public utilities reflect the changes in
3 Average standard errors (SE) for the series exceed 0.3 percent for SIC coding. See Explanatory Notes for further information.
3-month changes and 0.6 percent for 12-month changes for the five years 5 This series has the same industry and occupational coverage as the

ending December 1996. To assist users in ascertaining the reliability of the Hourly Eamings Index, which was discontinued in January 1989.
series, SEs for estimates in this news release (excluding seasonally adjusted
series) will be available on the Intemet site (http://stats.bls.gov/ecthome.htm).
All series will continue to be published until further notice. NOTE: Dashes indicate data not available.
Includes transportation, communication, and public utilities; wholesale


; United States ;
' Department S
of Labor

Bureau of Labor Statistics Washington, D.C. 20212

Technical Contact: USDL: 00-120
(202) 691-6199 ocltinfo@bls.gov

Media Contact: TRANSMISSION OF MATERIAL
(202) 691-5902 hoyle_k@bls.gov IN THIS RELEASE IS EMBARGOED

Internet address: UNTIL 8:30 A.M. (EDT),
http://stats.bls.gov/ecthome.htm THURSDAY, APRIL 27, 2000

EMPLOYMENT COST INDEX—MARCH 2000

The Employment Cost Index for March 2000 was 146.5 (June 1989=100), not seasonally adjusted, an
increase of 4.3 percent from March 1999, the U.S. Department of Labor’s Bureau of Labor Statistics reported

today. The Employment Cost Index (ECI) measures changes in compensation costs, which include wages,
salaries, and employer costs for employee benefits.

Quarterly changes, seasonally adjusted

On a seasonally adjusted basis, the 3-month increase in compensation costs for civilian workers
(nonfarm private industry plus State and local government) was 1.4 percent during the December 1999-March
2000 period, following a gain of 1.0 percent in September-December 1999. Wages and salaries increased 1.1
percent during the December 1999-March 2000 period; in the September-December 1999 period, it was 0.9
percent. Benefit costs rose 2.0 percent during the March 2000 quarter, following a 1.2 percent increase in the
December 1999 quarter.

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

June Sep. Dec. = Mar. June Sep. Dec. = Mar.
Compensation Component 1998 1998 1998 = 1999 = :1999 1999 _~—s1999 +2000
Civilian workers
Compensation costs 0.9 0.9 0.6 0.5 11 0.8 1.0 14
Wages and salaries 0.9 11 0.7 0.5 1.2 0.9 0.9 1.1
Benefit costs 0.7 0.7 0.6 0.3 1.0 0.8 1.2 2.0
Private industry
Compensation costs 0.8 1.1 0.6 0.4 11 0.9 1.0 15
Wages and salaries 0.9 1.2 0.7 0.4 1.2 0.9 09 1.2
Benefit costs 0.7 0.6 0.6 0.3 1.0 1.0 11 2.3
State and local government
Compensation costs ~ 0.7 0.8 0.6 0.6 0.9 0.8 1.1 0.8
Wages and salaries 0.7 0.7 0.8 0.7 0.9 0.9 1.0 0.9
Benefit costs 0.7 0.9 0.6 0.5 0.6 0.4 1.2 1.0
NOTE

This release incorporates new seasonal adjustment factors. See page 3 for details.



12

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

group
(Not seasonally adjusted data)

Indexes (June 1989=100) Percent changes for—~
i 3 months ended— 12 months ended
Industry and occupational group Mar. Dec. Mar.
1999 1999 2000 Mar. Dec. Mar. Mar. Dec. Mar.
1999 1999 2000 1999 1999 2000
Private industry workers 138.1 142.2 143.9 05 0.9 1.2 3.3 35 42
Excluding sales occupations 138.2 | 142.0 | 143.5 9 9 ww 3.4 3.7 3.8
industry
Goods producing! 136.3 | 139.7 | 141.3 8 9 VW 3.3 3.3 3.7
Excluding sale: 135.5 | 138.9 | 140.5 8 8 1.2 3.2 3.3 37
White collar 139.4 | 143.0 | 145.0 9 a 14 3.3 35 40
Excluding 187.8 | 141.3 | 143.2 1.0 a 1.3 3.4 3.6 3.9
Blue collar .... 134.3 | 137.6 | 139.0 8 7 1.0 3.2 3.2 3.5
Construction? .. 130.7 | 133.6 | 136.0 Wa 5 18 3.7 3.3 44
Manufacturing 137.9 | 141.5 142.9 8 9 1.0 3.1 3.4 3.6
White collar 140.1 144.0 | 145.8 8 a 1.3 3.3 3.6 41
Excluding sales 138.3 | 142.0 | 143.7 9 a 1.2 3.4 3.6 3.9
Blue collar 136.3 139.7 | 140.8 7 9 8 3.0 3.3 3.3
Durables .. 137.9 | 141.8 | 143.0 7 1.0 8 3.4 3.6 3.7
Aircraft manufacturing (SIC 3721 139.4 | 143.6 146.3 8 6 1.9 3.2 3.8 49
White collar 135.5 | 139.1 142.1 7 6 22 3.3 3.4 49
1445 | 149.9 | 151.8 9 7 13 3.1 47 5.1
138.0 | 140.9 | 142.7 BS) a 1.3 28 3.0 3.4
Service producing? .. 138.9 | 143.3 | 145.0 A 8 1.2 3.3 35 44
Excluding sales 139.8 | 143.8 | 145.3 9 8 1.0 3.4 3.8 3.9
140.3 | 145.0 | 146.9 A 8 1.3 3.4 3.5 47
142.0 | 146.4 | 147.8 2 a 1.0 3.4 44 44
134.4 | 137.8 139.1 Ww 6 e] 3.2 37 3.5
136.7 | 139.6 | 141.1 1 12 1 3.5 3.3 3.2
Transportation and public utilities+ 135.4 | 137.9 | 138.5 2 3 4 25 24 23
Transportation2:4 132.3 | 134.9 | 134.9 “5 4 0 1.7 15 2.0
Public utilities .. 139.2 | 141.8 | 143.2 1.0 2 1.0 3.5 29 29
Communications 139.4 | 142.2 | 143.4 1.0 2 8B 37 3.0 29
Electric, gas, and sanitary services 138.9 | 141.3 | 143.0 11 3 1.2 34 28 3.0
Wholesale and retail trade 137.7 | 142.0 | 143.8 5 a 1.3 3.3 3.6 44
Excluding sale: 139.5 | 143.3 | 145.2 9 Ww 1.3 3.6 37 41
Wholesale trade? 140.7 | 146.5 | 147.4 4 15 6 3.3 37 48
Excluding sales 141.9 | 146.4 | 147.9 8 Ww 1.0 4.0 4.0 42
Retail trade ..... 136.2 | 139.6 | 142.1 1.0 5 1.8 3.3 3.6 43
General merchandise stores? 133.7 | 136.7 | 137.8 5 8 8 3.3 28 34
Food stores? ... 131.8 | 134.9 | 136.7 1.0 7 13 22 3.4 3.7
Finance, insurance, and real estate? 137.2 | 145.2 | 148.7 19 5 24 3.5 3.9 8.4
Excluding sales 141.0 | 148.0 | 150.2 1.0 3 15 3.8 6.0 65
Banking, savings

credit agencies? 146.1 159.6 162.0 1.2 3 15 3.7 10.5 10.9
137.4 | 141.5 | 145.5 +8 9 28 3.2 22 5.9
139.1 141.6 | 143.2 a) 5 1 3.3 27 29
Senvices .. 142.2 | 146.0 | 147.4 1.0 1.0 1.0 3.6 37 3.7
Business services? 145.4 | 149.8 | 152.0 9 9 15 5.7 4.0 45
Health services 138.7 | 142.2 | 143.5 a) VW 9 1.8 35 3.5
Hospitals 137.6 | 140.9 | 141.8 8 Vt 6 3.0 3.2 34
Nursing homes. - - - 14 Ww 1.3 3.8 44 43
Educational services 143.9 | 148.2 | 148.9 3 5 5 3.5 3.3 35
Colleges and universities 144.4 147.9 | 148.9 3 5 A 3.6 3.0 3.3

‘See footnotes at end of table.


11

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)

Indexes (June 1989=100) Percent changes for—
3 months ended— 12 months ended-
Industry and occupational group Mar. Dec. Mar.
1999 1999 2000 Mar. Dec. Mar. Mar, Dec, Mar.
1999 1999 2000 1999 1999 2000
Civilian workers 138.4 142.5 | 144.0 05 08 11 3.3 35 4.0
Excluding sales occupations 138.4 142.3 | 143.7 8 so] 1.0 3.3 3.6 3.8
Industry
Goods producing! 136.3 | 139.7 | 141.3 8 8 W 3.3 3.3 37
Manufacturing .. 137.9 | 141.5 | 142.9 8 9 1.0 3.1 3.4 3.6
Service producing? 139.2 143.5 | 145.0 4 8 1.0 3.3 35 42
Services .... 141.5 145.5 | 146.6 7 1.0 8 3.4 3.6 3.6
Health services 138.8 1425 | 143.8 a Ww a 1.9 3.6 3.6
Hospitals .. 138.1 141.6 | 142.6 a7 Wa 7 29 3.3 3.3
Educational services .. 140.2 144.7 145.3 A 7 4 2.9 34 3.6
Public administration? 136.9 141.5 | 142.5 7 1.4 7 3.2 41 41
Nonmanufacturing 138.4 142.6 144.2 4 8 Ww 3.3 35 42
Occupational group
White collar 140.1 144.6 | 146.2 3 a 1.1 3.3 3.5 44
Excluding sales 140.5 144.8 | 146.2 7 a 1.0 3.2 3.8 41
Professional specialty tec! 140.1 144.0 | 144.9 5 1.0 6 3.2 3.3 3.4
Executive, administrative, and managerial 141.6 147.2 | 148.6 a 9 1.0 3.1 49 49
Administrative support, including clerical 140.0 143.5 | 145.5 1.0 8 1.4 3.7 35 3.9
Blue collar .. 134.5, 137.9 | 139.2 9 7 9 3.1 3.5 3.5
Service 138.3 | 141.7 | 143.0 9 11 a 3.4 3.4 3.4
State and local government... 139.0 | 143.5 | 144.3 4 a 6 29 3.6 38
Industry
Services 139.5 144.0 | 144.6 2 8 4 28 3.4 3.7
Excluding schools4.5 139.0 143.2 | 144.3 6 8 8 27 3.6 3.8
Health services 139.7 144.2 | 145.3 4 1.0 8 25 3.6 40
Hospitals .. 139.7 | 144.1 145.3 4 9 8 25 3.6 4.0
Educational services .. 139.5 | 144.0 | 144.5 a 8 3 28 34 3.6
Schools ..... 139.6 | 144.2 | 144.7 a 8 3 28 34 37
Elementary and sex lary 139.5 | 144.1 144.5 a 7 3 2.6 34 3.6
Colleges and universities 139.6 | 144.4 | 144.9 0 1.3 3 3.3 34 3.8
Public administration’ .... 136.9 | 141.5 | 1425 7 1.4 7 3.2 4d 41
Occupational group

White collar .... 138.9 143.4 | 144.1 3 9 5 2.9 3.5 3.7
Professional specialty and technical 138.9 143.6 | 144.3 1 8 5 25 3.5 3.9
Executive, administrative, and manag 140.1 144.3 | 144.9 6 11 4 3.7 36 3.4
Administrative support, including clerical 137.4 | 141.7 | 142.4 7 15 5 3.3 38 3.6
136.9 140.7 | 141.5 7 9 6 29 35 3.4
141.1 145.7 | 146.4 8 Ww 5 3.4 44 3.8

1 Includes mining, construction, and manufacturing. ‘3-month changes and 0.6 percent for 12-month changes for the five years

2 Includes transportation, communication, and public utilities; wholesale ending December 1996. To assist users in ascertaining the reliability of the
and retail trade; finance, insurance, and real estate; service industries; and _series, SEs for estimates in this news release (excluding seasonally adjusted

Public administration. series) will be available on the intemet site (http://stats.bls.gov/ecthome.htm).
Includes executive, legislative, judicial, administrative, and regulatory All series will continue to be published until further notice.
activities of State and focal govemments, SIC's 91 through 96. 5 Formerty called hospitals and other services.

Average standard errors (SE) for the series exceed 0.3 percent for


8

Table 3. Employment Cost Index for total compensation’ for private industry workers, by industry and occupational
group

(Not seasonally adjusted data)
Indexes (June 1989=100) Percent changes for—
3 months ended— 12 months ended~
Industry and occupational group Mar. Dec. Mar.
1999 1999 2000 Mar. Dec. Mar. Mar. Dec. Mar.
1999 1999 2000 1999 1999 2000
Private industry workers .. 140.4 144.6 | 146.8 0.4 0.9 15 3.0 3.4 46
Excluding sales occupations 140.5 144.5 | 146.5 8&8 a) 1.4 3.0 37 43
Industry

Goods producing? 138.9 | 142.5 | 144.8 8 1.0 1.6 2.8 3.4 42
Excluding sales 138.3 | 141.8 | 144.2 8 a 17 28 3.3 43
White collar ... 141.7 | 145.5 | 148.1 11 11 1.8 29 3.7 45
Excluding sales 140.4 | 143.9 | 146.5 12 1.0 18 3.0 3.7 44
Blue collar .. 137.1 140.7 | 142.8 6 a 15 27 32 4.2
Construction® .... 135.6 138.7 | 140.8 1.0 6 15 3.8 3.3 3.8
Manufacturing 139.9 143.6 | 146.0 7 Wa 17 2.6 34 44
White collar 141.8 145.8 | 148.2 9 1.0 1.6 2.6 38 45
Excluding 140.1 143.8 | 146.2 1.0 a) 17 2.6 37 44
Blue collar 138.5 142.1 144.4 6 Ww 1.6 26 3.2 43
Durables 139.9 144.0 | 146.5 5 1.2 1.7 25 3.4 47
Aircraft manufacturing (SIC 3721) 140.5 | 146.9 | 151.2 A 22 29 24 45 76
White collar 137.3 | 141.7 | 146.6 “1 14 35 1.9 34 68
Blue collar 144.3 | 154.4 | 157.8 “A 3.6 22 3.4 6.9 94
Nondurables 139.6 | 142.8 | 144.9 1.0 a 15 27 3.3 3.8
Service producing? 140.9 | 145.3 | 147.4 3 8 14 31 34 46
Excluding sales 141.7 | 145.9 | 147.7 8 a 1.2 3.1 38 4.2
White collar ... 142.3 | 147.0 | 149.3 a 8 1.6 3.1 34 49
Excluding sales 143.8 | 148.3 | 150.3 7 a) 1.3 34 3.9 45
Blue collar .. 136.2 | 139.8 | 141.8 1.0 5 1.4 34 37 4t
Senice ... 139.3 | 142.4 | 143.6 11 1 8 3.2 3.3 34
Transportation and public utilities> 139.7 | 142.3 | 143.9 3 4 Ani 29 22 3.0
Transportation3.5 136.8 | 1395 | 140.4 +4 6 6 24 1.6 2.6
Public utilities ... 143.4 | 146.1 148.6 VW 3 Ww 4.0 3.0 3.6
Communications 143.3 | 146.0 | 148.4 V1 “A 1.6 4.9 3.0 36
Electric, gas, and sanitary services ......|. 143.4 | 146.1 148.9 a) 7 1.9 27 28 3.8
Wholesale and retail trade 138.9 | 143.5 | 145.6 5 a 1.5 3.4 3.8 48
Excluding sales 139.9 144.3 | 146.4 8&8 Ww 15 3.2 4.0 46
Wholesale trade? 142.7 148.5 | 150.0 “A 15 1.0 3.6 4.0 5A
Excluding sales 142.4 | 147.4 | 149.6 8 V1 1.5 3.9 44 51
Retail trade .. 136.8 | 140.7 | 143.2 a) 5 1.8 28 3.8 47
General merchandise stores? 135.0 138.3 | 139.7 7 8 1.0 29 3.2 3.5
Food stores’ .... 134.3 | 138.1 140.1 1.2 8 1.4 23 44 43
Finance, insurance, and real estate? . 141.5 | 148.3 | 152.0 77 5 25 3.5 41 74
Excluding sales ... 145.6 | 151.6 | 154.2 1.6 A 17 3.9 5.8 5.9

Banking, savings and loan, and other
credit agencies? 148.8 | 159.8 | 162.7 1.4 3 18 3.8 8.9 9.3
Insurance? 141.7 | 145.8 | 149.9 0 a 28 3.1 29 5.8
Excluding 144.5 | 147.0 | 149.4 14 5 1.6 3.2 3.2 34
Services ..... 143.5 | 147.6 | 149.4 6 1.0 1.2 3.0 3.4 41
Business services3 1475 | 151.9 | 154.2 Ww 8 1.5 5.7 41 45
Health services 140.5 144.2 | 145.8 An! V1 Ww 1.7 3.7 3.8
Hospitals ... 141.2 | 144.6 | 145.8 9 V1 8 3.3 34 3.3
Nursing homes: = - - 13 14 1.3 3.6 42 42
Educational services 148.3 153.0 | 154.0 4 5 7 3.4 3.6 3.8
Colleges and universities .. 149.2 153.3 | 154.6 5 5 8 3.4 3.2 3.6

See footnotes at end of table.


Employment Cost Index

Chart A. Changes in wages and salaries
and benefit costs, private industry

Wages & salaries Benefits

12-month percent change
4-4

 —lduabtuslsoloslutubaabectaetessbasaliaslasalaabaalial

80 . 82. 84. 86. 88. 90.92. 94.96. 98.00

Chart B. Changes in compensation,

seasonally adjusted and not seasonally
_ adjusted, private industry

| Seasonally adjusted Not seasonally adjusted |

3-month percent change
3.5 >

{Doutta uadealeectssateasluadiabaatvsalsielicehabiaial

80 . 82. 84. 86. 88.90.92. 94.96. 98.00

Chart C. Changes in benefits by
occupational category, private industry

White-collar Blue-collar

| 12-month percent change
147

127-3

10 -

oN FD

bolutbulubobstubstuellielibstsleabaluadersberl

Chart D. Changes in benefits by
industry sector, private industry

Goods-producing _Service-producing

12-month percent change

80 . 82. 84. 86. 88. 90.92.94. 96.98 . 00

QQ Cabubsbblbubulutibbulubulsboltulstul

80 . 82. 84. 86. 88.90.92.94. 96.98.00

Bureau of Labor Statistics, Office of Compensation Levels and Trends

March 2000 ocltinfo@bls.gov 202.691.6199



15

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)

Indexes (June 1989=100) Percent changes for—
Industry, occupational group, and 3 months ended- 12 months ended-
bargaining status Mar. Dec, Mar.
1999 1999 2000 Mar. Dec. Mar. Mar, Dec. Mar.
1999 1999 2000 1999 1999 2000
Civilian workers .... 145.3 149.5 | 152.6 04 11 24 23 3.3 5.0
State and local government 143.6 | 146.7 | 148.2 6 1.2 1.0 28 28 3.2
Private industry .. 145.8 | 150.2 | 153.8 4 Vw 24 22 3.4 5.5
Industry
Goods producing! 144.3 | 148.2 | 152.3 8 1.3 28 2.0 3.4 5.6
Service producing? . 146.1 | 150.7 | 154.0 3 9 2.2 24 34 54
143.6 | 147.8 | 152.3 6 1.4 3.0 1.3 3.4 6.1
142.6 | 153.9 | 161.9 1.9 5.7 5.2 6 5.9 13.5
141.3 147.6 | 156.8 18 3.3 6.2 vl 26 11.0
144.2 163.0 | 169.2 1.6 9.0 3.8 3.7 11.2 17.3
146.3 150.7 | 154.0 3 9 2.2 25 3.4 5.3
Occupational group
White collar 147.9 | 1525 | 156.3 3 1.0 25 22 3.5 5.7
Blue collar .. 142.2 | 146.2 | 150.0 4 1.0 26 22 3.2 5.5
Service? . 146.3 | 149.9 | 150.8 1.0 1.0 6 24 3.5, 31
Bargaining status

Union . 145.8 149.7 | 153.7 2 9 27 26 28 5.4
Nonunion 145.6 | 150.0 | 153.6 5 1.0 24 2.2 35 5.5

7 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 Average standard errors (SE) for the series exceed 0.3 percent for
3-month changes and 0.6 percent for 12-month changes for the five years

ending December 1996. To assist users in ascertaining the reliability of the
series, SEs for estimates in this news release (excluding seasonally
adjusted series) will be available on the Intemet__ site
(http-/stats.bls.gov/ecthome.htm). All series will continue to be published
until further notice.


17

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 ECT 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. ECI series are seasonally adjusted using
either direct or composite seasonally adjusted estimates. Industry and occupational series, such as
construction and service occupations, are adjusted directly. More aggregate series, such as civilian or private
industry workers, use composite estimates. The composite estimates could be obtained by aggregating either
the industry or the occupational components, and the results may differ depending on which method is used.
The aggregate seasonally adjusted ECI series are estimated by combining the component seasonally adjusted
industry series. The seasonal adjustment factors are recalculated once a year. The March release contains data
reflecting the newly updated seasonal adjustment factors. The historical data for the last five years are then
revised based on the newly estimated factors. The new seasonal factors for 2000 and the historical listing
containing revised seasonally adjusted indexes are available on the Internet site
(http://stats.bls.gov/ecthome.htm) or upon request. The factors are also published in the summer issue of
Compensation and Working Conditions.

The ECI sample is rotated approximately every five years; this makes it more representative and reduces
respondent burden. The sample is replaced on a cross-area, cross-industry basis and is being integrated with
the Bureau’s National Compensation Survey (NCS). Integrated samples result in an increase in the number of
private industry establishments and occupations in the survey. The NCS-ECI sample will be completely
integrated in 2001.

The costs per hour worked of compensation components, based on March data from the ECI, are
published in a separate news release titled "Employer Costs for Employee Compensation - March 1999," and
in an annual bulletin, Employer Costs for Employee Compensation, 1986-98, (Bulletin 2508). A description
of the cost levels data (ECEC) is provided in the article "Analyzing Employers' Costs for Wages, Salaries, and
Benefits" in the October 1987 issue of the Monthly Labor Review. This article, along with other ECEC
research articles, also appears in the annual bulletin. 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.

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 each 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. Currently, in the higher level aggregate series, the standard errors
for 3-month changes are generally 0.1 percent or less; for 12-month changes, standard errors are generally 0.25
percent or less. Currently, in the lower level series, standard errors are generally 0.3 percent or less for 3-
month changes and 0.6 percent or less for 12-month changes. Series found to have a higher average standard
error for the five years ending December 1996 are footnoted in the tables.


3
Over-the-year compensation costs for both union and nonunion workers increased significantly, 3.6
percent and 4.7 percent, respectively. In service-producing industries, union compensation increased 2.4
percent and nonunion compensation increased 4.9 percent. In goods-producing industries, the increase for
union workers was 4.8 percent and the increase for nonunion workers was 4.1 percent. Compensation in blue-
collar occupations rose 4.1 percent for union workers and 4.2 percent for nonunion workers. (See table 4.)

State and local government

In State and local government, the March 2000 over-the-year increase in wages and salaries was 3.8
percent, as compared with a 2.9 percent increase in March 1999. Benefit costs in March 2000 increased 3.2
percent. In March 1999, the increase was 2.8 percent. (See tables 5 and 8.)

NOTES:

This release includes annual revisions in seasonally adjusted Employment Cost Index (ECI) data for total
compensation, wages and salaries, and benefit costs. Seasonally adjusted data for 1995-1999 were revised to
reflect updated seasonal factors. The new seasonal factors and historical listing containing revised seasonally
adjusted indexes are available on the Internet site (http://stats.bls.gov/ecthome.htm) or upon request.

The ECI for June 2000 is scheduled to be released Thursday, July 27, 2000, at 8:30 a.m. (EDT).

In June 2000, the Bureau of Labor Statistics plans to expand the definition of nonproduction bonuses in
the ECI to better represent the compensation packages offered to employees. In addition to the traditional
types of nonproduction bonuses, such as attendance bonuses and lump sum payments, the ECI will include
hiring and referral bonuses. Hiring bonuses are payments made by the employer to induce an individual to
accept employment; referral bonuses are made by the employer to an employee for recommending an applicant
who is hired by the establishment.

As part of its ongoing research program, the Bureau of Labor Statistics is currently conducting research
on stock option plans. This research will be completed in stages. BLS has begun testing the incidence of
stock option plans across all industries and occupations. The prevalence of these plans, based on test results
and the potential impact on compensation costs, will determine the next stage of research. The results of the
incidence survey will be published in late 2000.

ECI data are available on the ECI home page (http://stats.bls.gov/ecthome.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 (labstat.helpdesk @bls.gov). For
ECI data requests, send e-mail to (ocltinfo@bls.gov).

The ECI news release is now available through an e-mail subscription service. Please see the
subscription link on (http://stats.bls.gov/ecthome.htm) or (http:/stats.bls.gov/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



2

The 3-month increase in compensation costs for private industry workers was 1.5 percent during the
December 1999-March 2000 period. The gain in wages and salaries was 1.2 percent in the March quarter; in
the December period, it was 0.9 percent. Benefit costs showed a strong 3-month increase of 2.3 percent during
the March 2000 quarter, compared with a 1.1 percent increase during the December 1999 period. (See tables
Aand 1.) The increase in private industry benefit costs was due, in part, to increases in health insurance,
supplemental pay, and paid leave.

Compensation costs for State and local government workers increased 0.8 percent during the December
1999-March 2000 period; in the September-December 1999 period, it was 1.1 percent. Wages and salaries
rose 0.9 percent in March, following a gain of 1.0 percent in December. Benefit costs increased 1.0 percent in
the March quarter; in December, the increase was 1.2 percent.

Qver-the-year changes, not seasonally adjusted

Compensation costs for civilian workers (not seasonally adjusted) increased 4.3 percent for the year
ended in March 2000. This compares with over-the-year increases of 3.0 percent in March 1999 and 3.3
percent in March 1998. Compensation costs in private industry rose 4.6 percent in the year ending March
2000, following increases of 3.0 percent for March 1999 and 3.5 percent for March 1998. In State and local
government, compensation costs increased 3.6 percent for the year ended March 2000; over-the-year increases
were 2.9 percent in March 1999 and 2.5 percent in March 1998. (See tables B, 2, and 3.)

Nonfarm private industry

In private industry, wages and salaries rose 4.2 percent for the year ended March 2000, up from a 3.3
percent increase in the year ended March 1999. (See tables B and 6.) Benefit costs for private industry
workers increased 5.5 percent for the year ended in March 2000, a significant increase from 2.2 percent in
March 1999. (See chart A and tables B and 8.) As with the over-the-quarter increases for private industry, the
rise in benefit costs was due, in part, to higher payments for health insurance, supplemental pay, and paid
leave.

In private industry, over-the-year compensation cost increases were 4.8 percent for white-collar
occupations, 4.2 percent for blue-collar occupations, and 3.2 percent for service occupations. Among the
occupational groups, changes in compensation costs ranged from 3.2 percent for service occupations to 6.7
percent for sales occupations. (See table 3.)

Table B. 12-month percent changes in Employment Cost Index, not seasonally adjusted
Mar. Mar. Mar. Mar. Mar. Mar.
Compensation Component 1995 1996 1997 1998

19992000
Civilian workers
Compensation costs 2.9 2.8 2.9 3.3 3.0 4.3
Wages and salaries 3.0 3.1 3.3 37 3.3 4.0
Benefit costs 2.8 1.8 2.0 2.2 2.3 5.0
Private industry
Compensation costs 2.9 2.7 3.0 3.5 3.0 46
Wages and salaries 2.9 3.2 3.4 4.0 3.3 42
Benefit costs 2.9 1.6 2.0 23 2.2 5.5
State and local government
Compensation costs 3.1 2.8 2.5 2.5 2.9 3.6
Wages and salaries 3.2 28 28 2.8 2.9 3.8
Benefit costs 2.5 2.7 2.0 17 2.8 3.2

For the year ended March 2000, the private industry compensation cost increase was 4.6 percent for
service-producing industries, up from 3.1 percent for the year ended March 1999. The over-the-year increase
in compensation costs for goods-producing industries was 4.2 percent, up from 2.8 percent the previous year.
Among industry divisions, March 1999-to-March 2000 changes ranged from 2.6 percent in transportation to
9.3 percent in banking, savings and loan, and other credit agencies. (See table 3.)


13

Table 6. Employment Cost Index for wages and salaries for private industry workers by industry and occupational
group — Continued.

(Not seasonally adjusted data)

Indexes (June 1989=100) Percent changes for—

Industry and occupational group Mar. Dee. Mar 3 months ended— 12 months ended—

1999 1999 2000 Mar. Dec. Mar, Mar. Dec. Mar.
1999 1999 2000 1999 1999 2000

Industry-Continued
Nonmanufacturing industries 137.9 | 142.1 143.9 0.4 08 1.3 3.4 3.4 44
White collar ... 140.1 144.7 146.5 2 8 1.2 3.4 35 46
Excluding sales 141.6 | 145.9 | 147.4 9 9 1.0 3.4 4.0 41
Blue collar .. 132.4 | 135.8 | 137.4 1.0 5 1.2 3.3 3.6 3.8
Service ... 136.5 | 139.5 | 140.9 1.0 12 1.0 3.4 3.3 3.2
Occupational group
White collar 140.3 | 144.8 146.6 3 a 1.2 3.4 3.5 45
Excluding sales 141.0 | 145.2 | 146.7 a) e) 1.0 3.4 3.9 4.0
Professional specialty and technical 140.7 | 144.1 145.1 7 Ww . 3.5, 34 34
Executive, administrative, and managerial 141.9 | 147.6 | 149.2 1.0 8 11 3.0 5.1 51
Sales? 137.3 | 143.3 | 146.7 2.8 8 24 3.2 14 68
Administrative support,
clerical ..... 140.4 | 143.8 | 146.0 14 8 15 3.8 3.5 4.0
Blue collar .... 134.3 | 137.7 | 139.1 8 7 1.0 341 3.4 3.6
Precision production, craft, and repair 134.3 | 137.5 | 138.9 1.0 6 1.0 3.5 3.4 34
Machine operators, assemblers, and
inspectors 135.7 | 139.5 | 140.7 6 a a 34 3.4 37
Transportation and material moving 129.4 132.7 134.1 1.0 6 1 25 38 3.9
Handlers, equipment cleaners, helpers, and
laborers .... 137.3 | 140.4 | 141.8 11 7 1.0 3.4 3.4 3.3
Service ... 136.7 | 139.6 | 141.0 1.0 12 1.0 35 3.2 3.4
Production and nonsupervisory
occupations ..... 136.8 | 140.4 | 142.1 3 8 12 3.4 29 3.9
7 Includes mining, construction, and manufacturing. and retail trade; finance, insurance, and real estate; and service industries.
Average standard errors (SE) for the series exceed 0.3 percent for 4 Estimates for transportation and public utiities reflect the changes in
3-month changes and 0.6 percent for 12-month changes for the five years SIG.coding. See Explanatory Notes for further information,
ending December 1996. To assist users in ascertaining the reliability of the 5 This series has the same industry and occupational coverage as the

series, SEs for estimates in this news release (excluding seasonally adjusted Hourly Earnings Index, which was discontinued in January 1989.
series) will be available on the Intemet site (http//stats.bls.gov/ecthome.htm)..
All series will continue to be published until further notice.

Includes transportation, communication, and public utilities; wholesale NOTE: Dashes indicate data not available.


16

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 include 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 lump-sum 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, 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 nonfarm economy except
private households and 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 26,000 occupational
observations within about 6,200 sample establishments in private industry and approximately 4,000
occupations within about 800 sample establishments in State and local governments. Data are collected for
the pay period including the 12" 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. In 1996, some establishments
in motor freight transportation and warehousing (SIC 42), transportation by air (SIC 45), and transportation
services (SIC 47) were reclassified into air courier services (SIC 4513), which includes support
establishments. While the establishments in question were engaged in the delivery of letters, parcels, and
packages, they were operated by enterprises engaged in furnishing air delivery of individually addressed
letters, parcels, and packages. The ECI sample introduced these reclassifications with the June 1998 reference
period.

Within an establishment, specific job categories are selected to represent broader occupational groups.
Since March 1995, the jobs are classified according to the 1990 Census, which differs little from the 1980
Census. From June 1986 through December 1994, the jobs were classified according to definitions used in the
1980 Census. Prior to June 1986, they were classified according to the 1970 Census. Differences between the
two classification systems are slight, as indicated in the article "Introducing New Weights for the Employment
Cost Index,” in the June 1985 issue of the Monthly Labor Review.

Fixed employment weights are used each quarter to calculate the most aggregate indexes--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. A description of the reweighting is included in
the article "Introducing 1990 Weights for the Employment Cost Index," published in the June 1995 issue of
Compensation and Working Conditions (available upon request). From June 1986 through December 1994,
employment counts from the 1980 Census were used as weights. Before June 1986, employment counts from
the 1970 Census were used.