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— .
i i 3 months ended— 12 months ended—

Bargaining status, region, and area Sep. Jun. Sep.
1999 2000 2000 Sep. Jun. Sep. Sep. Jun. Sep.
1999 2000 2000 1999 2000 2000

Bargaining status
Union .... 135.7 | 138.5 | 140.0 07 0.9 V1 25 28 3.2
Blue-collar occupations 133.6 | 136.5 | 138.2 8 1.0 1.2 28 3.0 3.4
Goods-producing industries? 134.9 | 138.4 | 140.2 8B 9 1.3 3.0 3.4 3.9
Service-producing industries® 136.8 | 138.9 | 140.1 7 9 a 2.0 23 24
Manufacturing . 135.8 139.7 141.4 8 6 1.2 27 37 41
Blue-collar occupations 135.4 138.7 | 140.4 7 7 12 28 3.4 3.9
Nonmanufacturing . 135.6 137.8 139.2 7 1.0 1.0 24 24 27
Nonunion 142.0 146.7 148.1 a 14 1.0 3.3 43 43
Blue-collar occupations 138.7 | 142.9 | 144.1 a 1 8 35 3.9 3.9
Goods-producing industries? 140.0 | 144.7 | 145.8 a) 13 8 3.2 43 44
Service-producing industries? 142.6 | 147.3 | 148.7 a! 1.0 1.0 3.4 42 43
Manufacturing .. 141.7 146.1 147.2 9 12 8&8 3.2 4.0 3.9
Blue-collar occupations 140.5 | 144.2 | 145.4 9 1.0 8 3.2 3.6 35
Nonmanufacturing .. 141.8 | 146.6 | 148.0 9 1 1.0 3.4 43 44
Region?

139.9 | 143.7 | 145.3 12 1.0 4 3.3 4.0 3.9
140.2 144.6 145.3 & 1 5 27 37 3.6
142.4 | 147.1 148.6 1.0 1.2 1.0 3.6 43 44
141.3 | 146.3 | 148.2 8 V1 1.3 3.4 44 49
141.2 | 145.7 | 147.1 9 1 1.0 3.1 41 42
139.8 | 143.7 | 144.7 1.0 1 7 3.8 3.8 3.5

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.

The regional coverage is as follows: Northeast: Connecticut, Maine,
Massachusetts, New Hampshire, New Jersey, New York, Pennsyivania,
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: llinois, Indiana, Iowa, 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
1989=100) Percent changes for 3-months ended—
Industry and occupational group
Jun. Sep. Dec. Mar. Jun. Sep. Dec. Mar. Jun. Sep.
2000 2000 1998 1999 1999 1999 1999 2000 2000 2000
TOTAL COMPENSATION
Civilian workers .... 147.9 | 149.2 0.6 05 V1 0.8 1.0 1.4 1.0 0.9
State and local government .. 146.5 147.4 6 6 9 8&8 1.4 8 B 6
Private industry ... 148.2 | 149.7 6 4 WW a) 1.0 15 Ww 1.0
Industry
Goods producing? 146.6 | 148.0 5 8 6 a) Ww 1.6 12 1.0
Construction? 142.9 144.8 V4 a 7 7 1.0 14 1.3 1.3
Manufacturing 147.4 | 148.7 4 7 7 9 11 1.6 1.0 9
Durables 148.3 | 149.4 4 6 7 a V1 1.9 12 7
Nondurables .. 146.0 | 147.6 5 7 7 eo) 1.0 1.2 9 14
Service producing? ... -| 149.0 | 150.5 7 3 13 a 1.0 1.4 14 1.0
Transportation and public utilities | 145.8 147.3 7 a 1.0 5 5 1.0 1.4 1.0
Wholesale trade? 151.7 152.14 15 “A 12 1.2 1.6 1.0 1 3
Retail trade ..... 144.6 145.8 2 8 1.4 5 a 1.6 8 8
Finance, insurance, and real
estate3.5 153.1 155.2 14 “7 3.0 1.2 5 25 7 14
Services ... 151.3 152.8 6 6 8 a) 1.0 1.3 1.3 1.0
Nonmanufacturing ..... 148.4 149.8 7 4 Ww 8 1.0 15 Ww Q
Occupational group
White collar .. 151.2 | 152.5 7 3 1.3 a 1.0 1.6 13 9
Blue collar 144.0 | 145.4 7 7 8 9 9 15 9 1.0
Senice .. 145.0 | 146.2 6 1.0 8&8 3 Ww 8 Ww 8
WAGES AND SALARIES
Civilian workers 145.5 | 146.7 7 5 12 9 9 14 1.0 8
State and local gor 145.5 | 146.7 8 7 9 9 1.0 a 8 8
Private industry .... 145.4 | 146.7 7 A 1.2 a 9 12 1.0 Q
Industry
Goods producing2.5 143.0 | 144.3 7 8 7 a 3 Ww 12 9
Construction3 137.8 | 139.1 11 1 5 8 a 1.8 Ww 9
144.4 | 145.7 6 8 8 a 9 1.0 1.0 9
144.7 | 146.1 7 7 9 3 1.0 8 1.2 1.0
143.9 | 145.1 6 7 7 8 2 1 1.0 8
Service producing? ..... 146.5 | 147.8 7 3 1.4 9 9 1.2 1.0 9
‘Transportation and public 140.2 | 141.2 7 a 13 3 4 4 13 7
Wholesale trade3 149.5 | 149.5 14 “A 1 1.3 15 a 13 0
Retail trade .. 143.3 | 144.5 a 1.0 1.2 4 9 17 7 8
Finance, insurance, and
estate3.5 149.5 | 151.7 1.2 1.9 3.8 15 5 24 5 15
Services 149.2 | 150.6 6 9 8 8 1.0 1.0 13 9
Nonmanufacturing ... 145.6 | 146.8 8 3 14 8 a) 1.2 12 8

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 ECI 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, although, as indicated
above, 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 Internet 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 ECT is available in several sources. These include an annual bulletin--
Employment Cost Indexes, 1975-99, (Bulletin 2532), 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 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://stats.bls.gov/ecthome.htm).

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.


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— .
_ 5 3 months ended— 12 months ended—

Bargaining status, region, and area Sep. Jun. Sep.
1999 | 2000 | 2000 | Sep. | Jun. | Sep. | Sep. | wun. | Sep.
1999 2000 2000 1999 2000 2000

Bargaining status
Union 140.2 | 144.4 146.1 0.9 1.0 1.2 25 3.9 42
Blue-collar occupations 137.8 | 1425 | 144.3 8 1.0 1.3 24 42 47
Goods-producing industries? 130.2 | 1448 | 146.8 7 1.0 1.4 27 48 55
Service-producing industries? .. 141.0 | 143.9 | 145.2 ) 1.0 x) 22 3.0 3.0
Manufacturing ... 139.1 145.4 147.1 7 6 1.2 23 5.3 5.8
Blue-collar occupations 138.5 144.8 146.5 7 6 1.2 22 5.3 5.8
Nonmanufacturing ... 140.3 | 143.4 | 145.0 8 1.2 V4 25 3.0 3.3
Nonunion .. 143.8 | 149.1 150.6 9 1.2 1.0 3.2 46 47
Blue-collar occupations 140.3 | 144.9 146.1 9 1.0 38 3.5 42 44
Goods-producing industries? 141.8 | 147.2 | 148.4 x) 42 8 3.0 48 47
Service-producing industries? .. 144.4 | 149.6 | 151.2 1.0 11 WwW 3.4 46 47
Manufacturing ... 143.0 | 148.2 | 149.2 a 12 7 3.0 46 43
Blue-collar occupations 141.6 | 145.8 | 146.7 1.0 1.0 6 34 40 3.6
Nonmanufacturing ... 143.8 149.4 150.7 1.0 1.2 V1 3.4 47 48
Region4
143.2 | 147.6 | 149.3 1.2 9 1.2 3.2 43 43
141.8 146.7 147.6 8 1.2 6 34 43 41
145.0 | 150.7 152.2 1.0 1.2 1.0 2.9 49 5.0
143.3 | 148.8 | 150.8 8 1.2 1.3 3.5 47 5.2
Area

Metropolitan 143.3 | 148.6 | 150.1 a9 42 1.0 3.0 46 47
Other 143.1 147.7 | 148.8 9 12 7 3.5 42 4.0

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; and service
industries.

The regional coverage is as follows: Northeast: Connecticut, Maine,
Massachusetts, New Hampshire, New Jersey, New York, Pennsyivania,
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: Iinois, 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— -
7 3 months ended— 12 months ended—
Industry and occupational group Sep. Jun. Sep.
1999 2000 2000 Sep. Jun. Sep. Sep. Jun. Sep.
1999 2000 2000 1999 2000 2000
Civilian workers .. 143.3 | 148.0 | 149.5 11 1.0 1.0 3.1 44 43
Excluding sales occupations 143.2 | 147.7 | 149.4 V4 1.0 1.2 3.2 42 43
Industry
Goods producing? 141.2 | 146.6 | 148.0 9 1.2 1.0 29 47 48
Manufacturing .. 142.1 147.5 148.7 a) 1.0 8 2.8 47 46
Service producing: 144.0 148.4 150.14 4 a qt 3.2 42 42
Services 145.1 149.3 | 151.2 1.3 9 1.3 34 43 4.2
Health services 142.7 | 147.5 | 149.0 a V1 1.0 26 4.3 44
Hospitals .. 143.4 | 147.7 | 149.5 8 1.0 1.2 29 3.9 43
Educational services .. 1446 | 146.8 | 149.7 2.0 2 2.0 3.1 3.6 35
Public administration4 142.4 | 146.1 146.9 6 3 5 25 3.3 3.2
Nonmanufacturing ... 143.4 | 148.0 | 149.6 Ww 1.0 Ww 3.2 43 43
Occupational group
White collar 145.0 | 149.9 | 151.5 12 1.0 Ww 34 46 45
145.1 149.8 151.5 12 1.0 1 3.2 45 44
Professional specialty and technical 143.9 | 148.3 | 150.0 12 inl 1 28 43 4.2
Executive, administrative, and managerial 147.3 } 151.9 | 153.7 13 9 1.2 4.0 45 4.3
Administrative support, including clerical 144.7 | 150.1 151.8 Bo) 1.0 14 3.4 47 49
Blue collar 139.5 | 144.1 145.6 9 1.0 1.0 3.1 42 44
Service 143.1 147.1 148.5 5 8 1.0 27 3.3 38
State and local government .... 143.1 145.9 | 147.8 15 3 1.3 29 3.5 3.3
Industry
143.2 | 145.5 | 148.0 19 2 17 3.0 3.6 3.4
io 142.6 | 145.8 | 147.6 1.6 4 1.2 28 3.9 3.5
Health services 144.2 | 147.9 | 150.0 15 A 14 28 42 4.0
Hospitals ... 144.8 148.4 150.7 15 3 15 29 40 41
Educational services 143.1 145.2 | 147.9 2.0 a 19 3.1 35 34
Schools .. 143.5 | 145.5 | 148.2 24 a 19 3.2 35 3.3
Elementary lary .. 142.9 | 144.7 | 147.3 24 A 18 3.0 3.4 34
Colleges and universities 144.8 | 147.6 | 150.5 1.9 a 2.0 3.4 3.9 3.9
Public administration$ .. 142.4 | 146.1 146.9 6 3 5 25 33 3.2
Occupational group
White collar ..... 142.6 | 145.3 | 147.3 17 3 14 3.0 3.6 3.3
Professional specialty and technical 142.0 | 144.5 | 146.6 1.9 3 15 3.1 37 3.2
Executive, administrative, and managerial 144.5 | 147.2 | 149.2 12 a 14 29 34 3.3
Administrative support, including clerical 143.0 | 146.5 | 148.3 12 4 1.2 25 3.7 3.7
Blue collar E 144.2 |} 145.9 1.0 3 12 3.0 3.4 35
Service 149.7 | 151.5 1.0 A 12 2.6 3.0 3.3

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.

Includes executive, legislative, judicial, administrative, and regulatory
activities of State and local governments, SICs 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 (httpy/stats.bis.gov/ecthome.htm).
All series will continue to be published until further notice.


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 .
4989=100) Percent changes for 3-months ended—
Industry and occupational group
Jun. Sep. Dec. Mar, Jun. Sep. Dec. Mar. Jun. Sep.
2000 2000 1998 1999 1999 1999 1999 2000 2000 2000
WAGES AND SALARIES-Continued
Occupational group
White collar .. 148.3 | 149.6 07 0.4 1.2 0.9 1.0 1.3 14 0.9
Blue collar5 .. 140.5 | 141.9 6 8 1.0 a) 7 1.0 1.0 1.0
Service . 142.5 143.5 7 1.0 8 1 1.2 1.0 Ww
BENEFIT COSTS
Civilian workers 154.0 155.5 6 3 1.0 8&8 1.2 2.0 Ww 1.0
State and local government . 148.8 | 148.9 6 5 6 A 1.2 1.0 5 A
Private industry .... 155.3 157.0 6 3 1.0 1.0 Ww 23 1.2 Wa
Industry
Goods producing? .. 154.1 155.7 2 7 6 8 1.4 27 12 1.0
Manufacturing 153.8 | 155.0 0 6 6 1.0 14 3.0 1.0 8
Service producing .... 156.0 | 157.8 8B 1 1.3 Q 14 2.0 14 12
Nonmanufacturing .. 156.1 158.0 7 3 12 9 9 22 14 12
Occupational group
White collar 158.5 | 160.4 5 3 1.0 an 1.0 25 14 1.2
Blue collar 151.5 153.0 4 7 7 8 1.0 29 8 1.0
Service ... 152.6 154.3 2 8 2 5 1.2 A 1.3 V1
7 Includes wages, salaries, and employer costs for employee benefits. news release (excluding seasonally adjusted series) will be available on the
2 Includes mining, construction, and manufacturing. Intemet site (http:/stats.bls.gov/ecthome.htm). All series will continue to be

Average standard errors (SE) for the unadjusted series upon which this published unt further notice.
series is based exceeded 0.3 percent for 3-month changes and 0.6 percent Includes transportation, communication, and public utilities; wholesale
for 12-month changes for the five years ending December 1996. To assist _and retail trade; finance, insurance, and real estate; and service industries.
users in ascertaining the reliability of the series, SEs for estimates in this 5 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— -
i 3 months ended~ 12 months ended—
Industry and occupational group Sep. Jun. Sep.
i999 | 2000 | 2000 | Sep. | Jun. | Sep. | Sep. | Jun. | Sep.
1999 2000 2000 1999 2000 2000
Industry-Continued
Nonmanufacturing industries .. 143.4 148.4 150.0 1.0 12 Ww 3.2 45 46
White collar ... 145.6 | 151.0 | 152.6 1.0 12 Ww 3.2 48 48
Excluding sales 146.8 | 152.0 | 153.8 1.0 1.2 12 3.4 46 48
Blue collar 138.0 142.3 143.9 x) 1.2 11 3.4 4.0 4.3
Service ... 140.7 145.1 146.3 2 Va 8 2.8 3.3 40
Occupational group
White collar .. 145.6 151.1 152.6 1.0 1.2 1.0 3.2 49 48
Excluding sales 146.0 | 151.3 | 152.9 1.0 13 V1 3.3 47 47
Professional speciz -} 145.2 | 150.7 | 152.2 8 1.5 1.0 25 46 48
Executive, administrative, and managerial ...| 147.7 152.7 154.4 1.3 an 14 44 47 45
Sales3 144.1 150.3 151.2 Ww a & 26 5.4 49
Administrative support, including
clerical 145.0 150.6 152.3 9 Ww Ww 3.4 48 5.0
Blue collar .... 139.4 | 144.1 145.5 a Va 1.0 34 43 44
Precision production, craft, and repair 139.6 | 144.1 145.8 9 1.3 12 3.1 41 44
Machine operators, assemblers, and
inspectors ... 139.9 145.0 146.0 VW 7 7 34 48 44
Transportation and mate 9 134.4 138.6 139.9 6 8 9 28 37 41
Handlers, equipment cleaners, helpers, and
laborers .... 143.2 148.1 149.4 6 1.2 9 3.4 44 43
Service ... 144.0 | 145.4 | 146.6 3 1.0 8 27 3.4 4.0
Production and nonsupervisory
occupations’ . 141.9 146.9 148.4 8 11 1.0 28 43 46
1 Includes wages, salaries, and employer costs for employee benefits. 4 Includes transportation, communication, and public utilities; wholesale
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 5 This series has the same industry and occupational coverage as the

S-month changes and 0.6 percent for 12-month changes for the five years Hourly Eamings Index, which was discontinued in January 1989,
‘ending December 1996. To assist users in ascertaining the reliabilty of the

series, SEs for estimates in this news release (excluding seasonally adjusted

series) will be available on the Intemet site (http://stats.bis.gov/ecthome.htm).. NOTE: Dashes indicate data not available,

All series will continue to be published until further notice.


' ‘ .

, United States
Department ‘ »
of Labor ;

Bureau of Labor Statistics Washington, D.C. 20212
Technical Contact: USDL: 00-311
(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, OCTOBER 26, 2000

EMPLOYMENT COST INDEX—SEPTEMBER 2000
The Employment Cost Index (not seasonally adjusted) for September 2000 was 149.5 (June 1989=100),

an increase of 4.3 percent from September 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 0.9 percent during the June-September 2000
period, following a gain of 1.0 percent in March-June 2000. Wages and salaries increased 0.8 percent during
the June-September period, following a 1.0 percent increase in the previous 3-month period. Benefit costs
rose 1.0 percent during the September quarter, following a 1.1 percent increase in the June quarter.

Table A. 3-month percent changes in Employment Cost Index, seasonally adjusted
Dec. = Mar. June Sep. Dec. Mar. June Sep.

Compensation Component 1998 1999 1999 1999 1999 2000 2000 _—_2000
Civilian workers
Compensation costs 0.6 0.5 11 0.8 1.0 14 1.0 0.9
Wages and salaries 0.7 0.5 12 0.9 0.9 1.1 1.0 0.8
Benefit costs 0.6 03 1.0 08 12 2.0 1.1 1.0
Private industry
Compensation costs 0.6 0.4 1.1 0.9 1.0 15 1.1 1.0
Wages and salaries 0.7 0.4 1.2 0.9 0.9 1.2 1.0 0.9
Benefit costs 0.6 03 1.0 1.0 11 2.3 1.2 1.1
State and local government :
Compensation costs 0.6 0.6 0.9 0.8 1.1 0.8 0.8 0.6
Wages and salaries ~ 0.8 0.7 0.9 0.9 1.0 09 0.8 0.8
Benefit costs 0.6 0.5 0.6 0.4 1.2 1.0 0.5 0.1

The 3-month increase in compensation costs for private industry workers was 1.0 percent during the
June-September 2000 period. The gain in wages and salaries was 0.9 percent in the quarter ended in
September; in the June quarter, it was 1.0 percent. Benefit costs showed a 3-month rise of 1.1 percent during
the September quarter, compared with a 1.2 percent gain during the June quarter. (See tables A and 1.)


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— .
3 months ended— 12 months ended—
Industry and occupational group Sep. Jun. Sep.
1999 | 2000 | 2000 | Sep. | Jun. | Sep. | Sep. | Jun. | Sep.
1999 2000 2000 1999 2000 2000
Private industry workers 144.0 | 145.4 | 146.8 0.9 1.0 1.0 3.2 44 41
Excluding sales occupations 140.8 145.1 146.5 a 14 1.0 3.3 3.9 4.0
Industry

Goods producing! 143.0 | 144.3 9 12 z) 34 42 42
Excluding sales 137.8 142.1 143,4 a Wt a 31 4.0 41
White collar .. 141.7 146.8 147.9 9 1.2 7 341 45 44
Excluding sales 140.1 144.9 | 146.0 9 1.2 8 3.2 44 42
Blue collar .... 140.5 142.0 x) 1 Ww 3.3 38 4.0
Construction? ... 138.0 | 139.4 8 15 1.0 3.5 46 48
Manufacturing . 144.4 145.7 a) 1.0 a 3.1 3.9 3.9
White collar .. 147.7 148.7 9 1.3 7 3.2 45 42
Excluding sales 145.6 146.6 a] 1.3 7 3.3 43 41
Blue collar 142.0 | 143.4 9 9 1.0 34 35 3.6
Durables .. 144.7 | 146.1 a 1.2 1.0 3.3 4.0 44
Aircraft manufactui i 148.6 | 150.0 & 1.6 a 40 5.0 51
White collar K 145.2 | 146.0 2 22 6 3.3 5.2 5.6
Blue collar 5. 152.1 155.14 2.3 2 2.0 5.6 45 42
Nondurables ... 143.9 | 145.0 7 8 8 27 37 3.8
Service producing? .. 146.5 | 147.9 a 1.0 1.0 3.3 40 44
Excluding sales 146.9 148.3 8 Ww 1.0 3.4 3.9 4.0
White collar .. 148.5 150.0 11 1 1.0 3.3 44 43
Excluding 149.6 151.2 1.0 1.2 V1 3.5 41 42
Blue collar 140.3 141.6 8& a) a 3.5 32 3.4
Service .. 1425 | 143.5 a 1.0 7 2.8 3.4 4.0
Transportation and public utili 140.0 | 141.3 5 11 a) 2.4 23 28
Transportation? 136.2 | 137.4 5 1.0 a 15 1.9 2.2
Public utilities .. 144.9 | 146.4 6 1.2 1.0 3.7 34 35
Communicati 145.0 | 146.7 6 1 12 3.8 28 3.4
Electric, gas, and sanitary services 140.9 144.7 145.9 6 1.2 8 3.4 34 35
145.5 | 146.4 8 12 6 3.0 42 41
146.8 | 148.2 5 11 1.0 3.4 40 45
149.4 | 149.6 14 14 a 3.6 5.0 3.7
149.7 151.3 1.3 1.2 Ww 37 47 45
143.5 | 144.8 A 1.0 9 27 38 42
138.5 | 139.7 1.0 5 9 2.6 34 3.0
139.5 | 140.2 8 2.0 5 17 5.0 47
Finance, insurance, and real estate? 149.5 | 151.7 15 5 15 46 5.0 5.0
Excluding sales .. 151.5 | 153.3 1.9 9 1.2 5.6 46 39

Banking, savings and loan, and other
credit agencies? 159.2 | 163.3 | 165.0 3.0 8 1.0 8.3 57 3.6
Insurance? 146.6 | 150.7 3 8 28 Ww 49 75
Excluding 144.1 145.7 7 6 1 3.1 3.0 3.4
Services ... 149.1 150.6 9 1.2 1.0 3.2 44 4.2
Business services? 148.5 | 154.1 | 155.3 15 14 8 47 5.3 46
Health services 140.6 | 145.3 | 146.6 7 13 a 23 44 43
Hospitals. 139.3 | 143.3 | 144.9 7 11 Ww 26 3.6 4.0
Nursing homes - - - 9 15 17 3.8 49 5.7
Educational services .. 149.6 | 153.4 23 5 25 3.3 37 4.0
Colleges and univer 149.4 | 152.5 19 3 21 34 35 3.6

See footnotes at end of table.


ll

Table 5. Employment Cost Index for wages and salaries for ci

industry and occupational group

jan and State and local government workers, by

(Not seasonally adjusted data)
Indexes (June 1989=100) Percent changes for— -
i, 3 months ended- 12 months ended—
Industry and occupational group Sep. Jun. Sep. a
1999 2000 2000 Sep. Jun. Sep. Sep. Jun. Sep.
1999 2000 2000 1999 2000 2000
Civilian workers 141.3 | 145.4 | 147.0 ta 1.0 qt 3.3 4.0 4.0
Excluding sales occupations 144.1 145.0 146.7 V4 a 1.2 3.3 3.9 40
Industry
Goods producing? 138.6 | 143.0 | 144.3 a) 1.2 ee) 34 44 44
Manufacturing .. 140.2 144.4 145.7 a 1.0 2 34 3.9 3.9
Service producing? .. 142.3 | 146.3 | 148.0 Ww a 1.2 3.3 40 4.0
Services 144.1 147.9 149.9 1.3 a 14 3.2 3.9 4.0
Health services 140.9 145.3 | 146.7 9 1.0 1.0 24 4.0 44
Hospitals .. 140.4 143.8 145.6 9 8 1.3 27 3.6 3.9
Educational services . 143.7 | 145.6 | 148.9 22 2 23 3.3 3.6 3.6
Public administration 139.5 | 142.9 | 144.6 12 3 1.2 3.5 3.7 37
Nonmanufacturing ... 141.5 | 145.5 | 147.2 inl 9 1.2 3.3 4.0 4.0
Occupational group
White collar 143.3 | 147.6 | 149.2 1.2 1.0 qt 3.2 42 41
Excluding sales 143.5 | 147.6 | 149.3 1.2 1.0 12 3.4 44 4.0
Professional specialty and technical .| 142.6 | 146.4 | 148.3 11 1.0 1.3 3.0 38 4.0
Executive, administrative, and managerial ...} 145.9 | 149.9 | 151.6 15 a Ww 3.8 42 3.9
inis in 142.3 146.9 148.5 1.0 1.0 11 3.5 43 44
137.0 | 140.6 | 142.0 9 1.0 1.0 33 35 3.6
140.1 144.0 | 145.7 5 7 1.2 29 33 40
State and local government .... 142.2 | 144.7 | 147.2 1.9 3 17 3.3 37 3.5
Industry
Services .. 142.9 | 144.9 | 147.9 21 2 21 3.3 3.6 3.5
Excluding schools+ 142.1 144.8 | 146.7 18 3 1.3 34 3.7 3.2
Health services 142.8 | 145.7 | 147.7 17 3 1.4 3.0 3.8 3.4
Hospitals ... 142.8 | 145.6 | 147.7 1.6 2 1.4 3.0 3.6 34
Educational services 142.9 | 1448 | 148.0 22 2 22 3.3 3.6 3.6
Schools .. 143.1 144.9 | 148.1 22 a 22 3.3 35 3.5
Elementary and secondary .. 143.1 144.6 | 147.9 23 A 23 3.2 3.4 34
Colleges and universities .. 1426 | 145.6 | 148.3 2.0 5 1.9 3.6 41 40
Public administrations .. 139.5 | 1429 | 144.6 1.2 3 12 35 3.7 37
Occupational group

White collar 142.1 144.5 | 147.1 2.0 3 1.8 3.3 37 35
Professional specialty and technical 142.5 | 144.7 | 147.4 2.2 3 1.9 3.3 38 3.4
Executive, administrative, and managerial 142.7 | 145.1 147.3 1.6 aA 15 3.4 3.3 3.2
Administrative support, including clerical 139.6 | 143.0 | 145.0 15 4 14 3.1 4.0 3.9
Blue collar 139.4 | 142.1 143.9 13 4 1.3 3.2 3.3 3.2
Service 144.1 146.6 | 149.6 14 1 2.0 35 3.2 38

7 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.

Includes executive, legislative, judicial, administrative, and regulatory
activities of State and local govemments, SICs 91 through 96.

4 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.


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— -

Industry and occupational group sep. dun. sep. 3 months ended— 12 months ended—
1999 | 2000 | 2000 | Sep. | Jun. | Sep. | Sep. | Jun. | Sep.
1999 2000 2000 1999 2000 2000
Private industry workers .. 143.3 | 148.5 | 149.9 09 1.2 0.9 3.1 46 46
Excluding sales occupations 143.2 148.2 149.8 a 1.2 Ww 3.2 44 46

Industry
Goods producing? 441.1 | 146.6 | 147.9 a) 1.2 2 29 48 48
Excluding sales 140.5 | 145.9 147.2 9 1.2 a) 2.9 47 48
White collar .. 143.9 | 150.1 151.3 8 14 8 3.0 5.2 51
Excluding sales 142.5 148.4 149.6 8 13 8 3.0 5.0 5.0
Blue collar 139.4 | 144.4 | 145.8 8 14 1.0 29 44 46
Construction .. 137.9 | 143.2 | 145.1 7 17 13 3.4 46 5.2
Manufacturing .. 142.1 147.5 | 148.7 a 1.0 8 28 47 46
White collar .. 144.3 | 150.2 | 151.4 Ec) 13 8 3.0 5.0 49
1425 | 148.2 | 149.3 8 14 7 3.0 49 48
140.5 145.6 146.7 8 8 8 27 44 44
142.3 | 148.3 | 149.4 9 1.2 7 27 5.2 5.0
143.7 | 154.3 | 156.0 a) a4 Ww 3.2 84 8.6
139.8 | 150.7 | 151.8 2 28 7 17 8.0 8.6
149.0 | 158.5 161.4 23 4 18 5.8 88 8.3
Nondurables ... 141.5 | 146.0 | 147.5 8 8 1.0 2.8 4.0 42
Service producing? .. 144.1 149.1 150.6 a) 1.2 1.0 3.2 44 45
Excluding sales 144.6 149.4 151.1 a 12 wt 3.3 43 45
White collar .. 145.8 | 151.0 | 152.6 1.0 11 1 3.3 46 47
Excluding sales 147.0 152.1 153.9 1.0 1.2 1.2 3.4 45 47
Blue collar 139.1 143.1 144.5 a 9 1.0 3.6 38 3.9
Service 140.8 | 145.1 146.3 2 1.0 8 28 3.3 3.9
141.8 | 145.7 | 147.4 6 1.3 1.2 24 3.4 3.9
138.7 141.8 142.8 A 1.0 7 15 27 3.0
145.7 150.9 153.5 8 15 17 3.6 44 5.4
146.1 150.9 | 153.9 8 17 2.0 4.0 41 5.3
Electric, gas, and sanitary services 145.1 151.0 152.9 6 1.4 13 29 47 5.4
Wholesale and retail trade 142.2 | 147.3 | 148.3 8 1.2 7 3.3 44 43
Excluding sales 142.8 | 148.1 149.6 6 12 1.0 3.4 44 48
Wholesale trade 146.3 | 151.8 | 152.1 12 12 2 3.9 5.0 4.0
145.8 | 151.1 152.7 13 1.0 Wa 41 49 47
140.0 | 144.8 | 146.2 6 11 1.0 3.0 41 44
137.2 | 141.0 | 142.2 12 a 9 3.0 4.0 3.6
137.0 | 142.5 | 143.4 1.0 17 6 25 5.0 47
Finance, insurance, and real estate’ ... 147.6 | 153.1 155.2 12 7 14 47 5.0 51
Excluding sales ... 151.0 | 155.5 | 157.4 15 8 1.2 5.4 45 4.2
Banking, savings and loan, and other

credit agencies3 | 159.3 | 164.2 | 165.8 25 a 1.0 7.3 57 41
Insurances 144.5 | 151.3 | 154.8 3 a 23 1.8 5A ral
Excluding sal 146.2 | 150.5 | 152.2 6 7 1 3.2 35 41
Services .. 146.1 151.2 | 152.9 1.0 1.2 Ww 3.0 46 47
Business services3 150.7 | 156.3 | 157.5 13 14 8 5.0 51 45
Health services 1426 | 147.5 | 149.0 8 12 1.0 2.6 4.3 45
Hospitals .. 143.0 | 147.5 | 149.2 6 1.2 1.2 28 3.8 43
Nursing homes. - - - c) 15 17 3.7 48 5.7
Educational services 152.2 | 154.9 | 158.8 24 6 25 3.5 42 43
Colleges and universities 152.6 | 155.5 | 158.6 2.0 6 2.0 3.2 3.9 3.9

See footnotes at end of table.


Employment Cost Index

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

Wages and salaries Benefits

12-month percent change

14

127

Chart B. Changes in wages and salaries and
benefit costs, State and local government

Wages and salaries _ Benefits

12-month percent change

14

0
82. 84.86.88 9092.94.96. 98. 00

g bee . seustiuat esestat
82 . 84. 86 . 88 . 90.92.94. 96 . 98 . 00

Chart C. Changes in compensation,
private industry and State and local
government

Private industry State and. local gov't.

- |
12-month percent change
10

Chart D. Changes in wages and salaries,
private industry and State and local
government -

| Private industry State and local gov't. |

12-month percent change
10 -

0 {PPT PES PRPETONT FPS SYPT S071 ro Ets FOOT PAPA

82 . 84. 86. 88.90.92. 94.96. 98 . 00

82. 84. 86. 88. 90. 92.94.96. 98 . 00



Table 8. Employment Cost Index for benefits for ci

15
ian, 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 Sep. Jun. Sep.
1999 2000 2000 Sep. Jun. Sep. Sep. Jun. Sep.
1999 2000 2000 1999 2000 2000
Civilian workers ... 147.9 154.3 | 155.8 0.9 Ww 1.0 27 5.3 5.3
State and local goverr 145.0 | 148.5 | 149.0 7 2 3 2.0 3.1 28
Private industry .. 148.6 155.7 157.5 a) 12 12 28 57 6.0
Industry
Goods producing? 146.3 154.2 155.7 8 1.2 1.0 23 62 6.4
Service producing? 149.4 156.0 | 157.9 1.0 13 12 3.1 5.5 5.7
Manufacturing .... 145.7 153.9 154.9 8 Al 6 22 6.5 6.3
Aircraft manufacturing (SIC 3721) 145.6 166.6 | 168.7 a) 29 1.3 1.3 15.5 15.9
White collar3 142.9 163.6 | 165.4 a 43 Ww 18 14.6 15.7
Blue collar .. 149.5 | 170.5 | 173.3 22 8 1.6 6.3 16.5, 15.9
Nonmanufacturing 149.4 | 156.1 158.1 a 14 1.3 3.0 5.5 5.8
Occupational group
White collar 151.0 | 158.5 | 160.4 14 14 1.2 3.0 6.1 6.2
Blue collar x 151.6 | 153.1 8 14 1.0 27 5.6 5.7
Service’ .. 148.4 152.7 154.4 5 1.3 Ww 2.6 35 4.0
Bargaining status
Union ... 148.3 155.5 157.4 1.0 12 1.2 23 59 6.1
Nonunion: 148.5 | 155.5 | 157.3 1.0 1.2 1.2 3.0 5.7 5.9

1 Includes mining, construction, and manufacturing.

‘ending December 1996. To assist users in ascertaining the reliability of the

Includes transportation, communication, and public utilities; series, SEs for estimates in this news release (excluding seasonally
wholesale and retail trade; finance, insurance, and real estate; and service adjusted series) will be available on the Intemet site

industries.

(hitp://stats.bls.gov/ecthome.htm). All series will continue to be published

Average standard errors (SE) for the series exceed 0.3 percent for _until further notice.
‘3-month changes and 0.6 percent for 12-month changes for the five years


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 aggregating 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 over approximately 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 private 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 2000," and
in an annual bulletin, Employer Costs for Employee Compensation, 1986-99, (Bulletin 2526). 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.


State and local government

In State and local government, the September 2000 over-the-year increase in wages and salaries was 3.5
percent, compared with a 3.3 percent increase recorded for September 1999. The 12-month increase in benefit
costs for September 2000 was 2.8 percent; in September 1999, the increase was 2.0 percent. (See tables 5 and

8.)

NOTES:
The ECI for December 2000 is scheduled to be released Thursday, January 25, 2001, at 8:30 a.m. (EST).

The June 2000 ECI introduced an expanded definition of nonproduction bonuses designed to improve
the ECT’s representation of 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 now includes
hiring and referral bonuses. A fact sheet has been prepared with additional information on this change and its
effect on the ECI. This information can be obtained directly from the BLS Internet site

(http://stats. bls.gov/ecthome.htm), by e-mail request (ocltinfo @bls.gov), or by telephone (202)-691-6199.

As part of its ongoing research program, the Bureau of Labor Statistics recently published the results of
a pilot survey on the incidence of stock option plans across all industries and occupations. The next phase of
this research will examine the feasibility of collecting cost data on stock options. The results of the pilot
survey and a fact sheet with additional information on the stock option research program can be obtained

directly from the Internet site (http://stats.bls.gov/comhome.htm) or upon request.

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 ECT news release is now available through an e-mail subscription service. 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

Compensation costs for State and local government workers increased 0.6 percent during the June-
September 2000 period; in the June period, it was 0.8 percent. Wages and salaries rose 0.8 percent in the
quarter ended in September, the same increase as the previous quarter. Benefit costs changed 0.1 percent in
the September quarter; this was down from the gain of 0.5 percent in the June quarter.

Over-the-year changes, not seasonally adjusted

Compensation costs for civilian workers (not seasonally adjusted) increased 4.3 percent for the 12
months ended in September 2000. This compares with over-the-year increases of 3.1 percent in September
1999 and 3.7 percent in September 1998. Compensation costs in private industry rose 4.6 percent in the year
ended September 2000, compared with increases of 3.1 percent in September 1999 and 3.8 percent in
September 1998. In State and local government, compensation costs increased 3.3 percent for the year ended
September 2000; over-the-year increases were 2.9 percent in September 1999 and 3.0 percent in September
1998. (See tables B, 2, and 3.)

Nonfarm private industry

In private industry, wages and salaries rose 4.1 percent for the year ended September 2000, after
increasing 3.2 percent in the year ended September 1999. (See tables B and 6.) Benefit costs for private
industry workers increased 6.0 percent for the year ended in September 2000, a significant increase from 2.8
percent in September 1999. (See chart A and tables B and 8.)

In private industry, over-the-year compensation cost increases were 4.8 percent for white-collar
occupations, 4.4 percent for blue-collar occupations, and 4.0 percent for service occupations. Among the
occupational groups, increases in compensation costs ranged from 4.0 percent for service workers to 5.0
percent for administrative support, including clerical occupations. (See table 3.)

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

Compensation Component 1995 1996 1997 1998 1999 2000
Civilian workers
Compensation costs 2.7 28 3.0 3.7 3.1 43
Wages and salaries 2.8 3.2 3.5 40 3.3 4.0
Benefit costs 2.2 1.8 19 2.6 2.7 5.3
Private industry
Compensation costs 2.6 29 3.2 3.8 3.1 4.6
Wages and salaries 2.8 3.3 3.6 43 3.2 Al
Benefit costs 2.1 18 2.0 2.6 2.8 6.0
State and local government
Compensation costs 3.0 2.5 2.4 3.0 2.9 3.3
Wages and salaries 3.1 2.8 2.7 3.0 3.3 3.5
Benefit costs 2.5 1.9 1.5 2.8 2.0 2.8

For the year ended September 2000, the compensation cost increase was 4.8 percent for goods-
producing industries, significantly higher than the 2.9 percent increase for the year ended September 1999.
The over-the-year increase in compensation costs for service-producing industries was 4.5 percent, compared
with an increase of 3.2 percent for the year ended September 1999. Among service-producing industry
divisions, September 1999-to-September 2000 increases ranged from 3.0 percent in transportation to 7.1
percent in insurance. (See table 3.)

Compensation costs for nonunion workers rose 4.7 percent over-the-year, compared with 4.2 percent for
union workers. In service-producing industries, nonunion compensation increased 4.7 percent, compared with
a 3.0 percent increase for union workers. In contrast, in goods-producing industries, the increase for union
workers was 5.5 percent, compared with a 4.7 percent gain for nonunion workers. Compensation in blue-
collar occupations rose 4.7 percent for union workers and 4.1 percent for nonunion workers. (See table 4.)


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— .
i 3 months ended— 12 ths ended—
Industry and occupational group Sep. Jun. Sep. mor i months ende
1999 2000 2000 Sep. Jun. Sep. Sep. Jun, Sep.
1999 2000 2000 1999 2000 2000
Industry—Continued
Nonmanufacturing industries 141.0 | 145.5 | 146.9 0.9 Ww 1.0 3.3 42 42
White collar 143.5 148.2 149.6 V1 1.2 9 3.3 44 43
Excluding sales 144.6 | 149.1 150.7 1.0 1.2 11 3.4 44 42
Blue collar 135.1 138.9 | 140.3 8 Ww 1.0 3.5 3.7 3.8
Service 137.9 142.4 143.4 a Ww 7 28 3.4 40
Occupational group
White collar ... 143.5 | 148.3 | 149.7 1.0 1.2 ga 3.2 44 43
Excluding sales .. 143.9 | 148.5 | 149.9 1.0 1.2 9 3.5 42 4.2
Professional specialty and technical 142.6 | 147.3 | 148.6 6 15 a 28 3.9 42
Executive, administrative, and managerial ...| 146.4 | 150.7 | 152.3 15 1.0 Wa 3.9 44 4.0
Sales? 142.1 147.9 149.0 1 8 7 24 5.3 49
Administrative suppor
clerical 142.7 147.5 149.1 9 1.0 1 35 43 45
136.8 140.5 141.9 9 1.0 1.0 3.3 3.6 37
Precision production, craft, and repair .. 136.7 | 140.6 | 142.0 8 12 1.0 3.3 3.7 3.9
Machine operators, assemblers, and
138.3 | 141.6 | 142.9 12 6 9 3.4 3.6 3.3
ing .. 131.9 135.2 136.5 7 8 1.0 3.4 3.2 3.5
Handlers, equipment cleaners, helpers, and
laborers ... | 139.4 143.6 145.0 8 13 1.0 3.2 38 4.0
Service .. 138.0 142.5 143.5 A Ww 7 27 3.4 40
Production and nonsupervisory
occupations? .... 139.3 | 143.7 | 145.0 8 Ww 9 3.0 4.0 44
1 Includes mining, construction, and manufacturing. 3 Includes transportation, communication, and public wholesale
2 Average standard errors (SE) for the series exceed 0.3 percent for and retail trade; finance, insurance, and real estate; and service industries.
3-month changes and 0.6 percent for 12-month changes for the five years 4 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.bis.gov/ecthome htm).

Al series will continue to be published until further notice. NOTE: Dashes indicate data not available.


16

EXPLANATORY NOTES

The Employment Cost Index (ECT) 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 lump-sum payments provided
in lieu of wage increases and referral bonuses); 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 June 2000 ECI introduced an expanded definition of nonproduction bonuses designed to improve
the ECI’s representation of 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 now includes hiring and
referral bonuses. Hiring bonuses are payments made by the employer to induce an individual to accept
employment; referral bonuses are payments made by the employer for recommending an applicant who is hired
by the establishment. A fact sheet has been prepared with additional information on this change and its effect
on the ECI. This information can be obtained directly from the Internet site (http://stats.bls.gov/ecthome.htm)
or upon request.

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 28,700 occupational
observations within about 6,800 sample establishments in private industry and approximately. 3,900
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. 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 to represent broader occupational groups.
Since March 1995, the jobs have been classified according to the 1990 Census; from June 1986 through
December 1994, the 1980 Census; and prior to June 1986, the 1970 Census. Differences in the classification
systems are described in 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”
published in the June 1995 issue of Compensation and Working Conditions.

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. A description of the reweighting is included in
an article, “Introducing 1990 Weights for the Employment Cost Index” published in the June 1995 issue of

Compensation and Working Conditions (available upon request).