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—
aa A 3 months ended- 12 months ended—
Bargaining status, region, and area Dec. Sep. Dec.
1997 1998 1998 Dec. Sep. Dec. Dec. Sep. Dec.
1997 | 1998 | 1998 | 1997 | 1998 | 1998
Bargaining status
Union ... 128.9 | 1324 | 133.1 05 13 0.5 28 32 3.3
Blue-collar occupations 126.7 | 129.9 | 130.6 i) Ww 5 27 34 34
Goods-producing industries? .. 127.1 131.0 | 131.7 4 12 5 28 35 3.6
Service-producing industries? 131.2 | 134.1 134.8 6 14 5 28 28 27
Manufacturing ..... 128.6 | 1322 | 133.0 6 14 6 27 3.4 34
Blue-collar occupations 128.4 | 131.4 | 132.4 & Pl 8 27 3.0 31
Nonmanufactuting .... 129.1 | 1324 | 133.1 4 12 5 29 3.0 31
133.0 | 137.4 | 138.3 Ww 1.3 7 4.2 44 4.0
130.6 | 134.0 | 134.8 7 8 & 3.4 3.3 3.2
Goods-producing industries" .. 132.0 | 135.7 | 136.5 6 7 & 3.1 3.4 3.4
Service-producing industries? 133.2 | 137.9 | 138.8 1.2 15 7 45 48 4.2
Manufacturing .... 133.5 | 137.3 | 138.2 7 8 7 3.0 3.5 3.5
Blue-collar occupations 133.0 | 1362 | 137.2 8 8 7 3.3 32 3.2
Nonmanufacturing .... 132.6 | 137.1 138.0 11 13 7 44 46 41
131.6 | 135.4 | 136.4 7 12 7 3.1 3.6 3.6
133.0 | 136.5 | 136.7 18 12 a 47 45 28
133.0 | 137.5 | 138.0 & Ww 4 4.2 4.0 3.8
131.2 | 136.7 | 138.4 8 1.6 1.2 37 5.0 55
132.3 | 136.9 | 137.7 a 13 6 38 44 41
132.0 | 134.7 | 136.0 1.2 1.0 1.0 43 3.3 3.0

1 includes mining, construction, and manufacturing.
Includes transportation, communication, and
wholesale and retail trade; finance, insurance, and real estate; and servi

i ies.

The regional coverage is as follows: Northeast: Connecticut, Maine,
Massachusetts, New Hampshire, New Jersey, New York, Pennsytvania,
Rhode Istand, 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, lowa, Kansas, Michigan,

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


Table 1. Employment Cost Index for total compensation’, wages and Salaries,

occupational group

5

and benefit costs by industry and

{Seasonally adjusted data)
Indexes (June Percent changes for 3-months ended—
1989=100) ang
Industry and occupational group
Sep. Dec. Mar. June Sep. Dec. Mar. June Sep. Dec.
1998 | 1998 | 1997 | 1997 | 1997 | 1997 | 1998 | 1998 | 1998 | 1998
TOTAL COMPENSATION
Civilian workers .. 138.7 | 139.7 07 0.8 08 1.0 0.7 0.9 1.0 07
State and local go 138.6 | 139.5 6 3 6 6 8 7 8 6
Private industry ..... 138.7 | 139.7 & 2 8 1.0 7 a 14 7
Industry
137.1 | 137.9 3 9 8 4 6 z:) 7 6
133.1 | 134.6 6 8 7 5 7 12 5 14
138.2 | 138.9 3 8 7 5 7 5 2 5
138.5 | 139.3 2 8 7 6 5 6 ) 6
137.8 | 138.3 4 a 8 5 cc) 5 1.0 4
Service producing ..... 139.5 | 140.6 8 8 2 13 7 zc) 13 8
‘Transportation and public utilitiesS | 138.6 | 139.3 4 7 8 1.0 1.0 13 a 5
Wholesale trade3 140.8 | 143.0 14 4 8 5 18 4 18 1.6
Retail trade ... 135.6 | 135.6 14 7 cc) 6 13 7 a 0
Finance, insurance,
estate36 . 141.0 | 142.5 21 6 2 31 1.6 12 19 11
Services 141.8 | 1428 7 2 1.0 12 4 8 14 :
Nonmanutfacturing ... 138.8 | 139.9 8 3 8 13 7 1.0 12 8
Occupational group
White collar 141.1 | 142.2 8 8 9 13 8 x) 13 8
135.1 | 136.1 3 38 8 Zz 5 8 7 7
137.0 | 137.4 2 9 16 5 1.0 7 cc) 3
136.7 | 137.7 38 x) x) 1 8 9 12 7z
137.1 | 138.2 6 & 7 8 7 7 7 8
Private industry .. 136.6 | 137.6 2 cc) 1.0 1 38 1.0 13 7
Industry
Goods producing?« 134.3 | 1352 6 1 8 5 41 2 8 7
Construction$ 128.2 | 129.5 14 cc) 8 6 1.0 13 2 1.0
Manufacturing® .. 136.0 | 136.8 5 x) 8B 7 Wt 7 1.0 6
Durabiess 135.9 | 136.9 5 9 8 5 11 8 1.0 7
Nondurables .. 136.1 | 136.9 5 x) 8 a 14 4 1.0 6
Service producing$ .... .-| 137.6 | 138.6 2 x) 14 14 8 1.0 15 7
Transportation and public utilities> | 134.4 | 135.0 8 8 c) 8 5 8 14 4
Wholesale trade3 139.3 | 141.3 1.6 2 8 5 22 2 18 14
Retail trade ... 135.0 | 134.8 1.0 1.0 ) 7 1 1.0 13 “A
Finance, insurance, and reat
estates.6 138.1 | 139.8 19 6 c) 33 15 17 24 12
Services . 140.0 | 140.8 2 14 12 1 7 x) 12 6
Nonmanufacturing 197.6 x) ze) 1.0 13 8 1.0 12 1.0

See footnotes at end of table.


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—
ini i 3 months ended— 12 months ended—
Bargaining status, region, and area Dec. Sep. Dec.
1997 1998 1998 Dec. Sep. Dec. Dec. Sep. Dec.
1997 1998 1998 1997 1998 1998
Bargaining status
Union .... 133.5 | 136.8 137.5 0.2 Ww 05 24 27 3.0
Blue-collar occupations 131.6 | 134.6 135.3 3 1.0 5 24 26 28
Goods-producing industries? 132.5 | 135.6 136.5 2 1.0 7 24 25 3.0
Service-producing industries: 134.5 | 138.0 138.5 4 13 4 21 3.0 3.0
Manufacturing ..... 133.3 | 136.0 136.9 2 1.0 7 24 23 27
Blue-collar occupations: 133.0 | 195.5 136.4 3 1.0 7 2.2 22 26
Nonmanufacturing ..... 133.2 | 136.9 | 137.4 2 1.2 4 24 3.0 32
Nonunion ..... 135.3 | 139.3 | 140.1 1.0 Ww & 3.8 4.0 3.5
Blue-collar occupations ... 132.6 | 135.5 | 136.3 6 6 6 29 28 28
Goods-producing industries? 137.7 | 138.3 5 6 4 26 28 27
Service-producing industries? 135.3 | 139.7 | 140.6 1.2 12 6 42 45 3.9
Manufacturing ..... 135.9 | 138.9 139.4 6 7 4 2.6 28 2.6
Blue-collar occupations 134.8 | 137.4 138.3 A 5 7 2.6 24 26
Nonmanufacturing 134.9 | 139.1 | 140.0 1 12 6 41 43 3.8
Region*
135.0 | 138.7 | 139.5 7 12 & 3.0 3.5 3.3
134.6 | 187.6 | 138.1 1.6 9 4 3.8 38 26
136.9 | 140.9 | 141.4 5 a A 3.6 35 3.3
133.4 138.5 140.0 7 14 Ww 3.5 45 49
Metropolitan 135.1 139.14 139.8 a 12 5 3.4 39 35
Other .. 135.3 | 1382 | 139.4 Ww 8& a 3.9 33 3.0

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

2 Includes mining, construction, and manufacturing.

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

4 The regional coverage is as follows: Northeast: Connecticut, Maine,
Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania,
Rhode Island, and Vermont; South: Alabama, Arkansas, Delaware, District
‘of Columbia, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi,
North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia,

and West Virginia; Midwest: Illinois, Indiana, 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 Dec. Sep. Dec.
1997 1998 1998 Dec. Sep. Dec. Dec. Sep. Dec.
1997 1998 1998 1997 1998 1998
Civilian workers ... 135.2 | 139.0 | 139.8 0.8 12 0.6 3.3 3.7 3.4
Excluding sales occupations 135.3 | 138.8 | 139.5 8 1.0 5 3.4 34 34
134.1 137.2 | 137.9 4 7 5 2.4 27 28
135.3 | 138.2 | 138.9 5 7 5 24 27 27
135.5 | 139.6 | 140.4 1.0 14 6 3.5 4.0 3.6
137.6 | 140.8 | 141.7 8 1.3 & 3.3 32 3.0
137.9 | 139.1 139.1 a 4 0 26 18 9
136.7 | 139.4 | 140.2 8 9 6 22 28 26
137.0 140.2 141.0 4 18 6 23 27 29
Public administration 135.1 138.9 | 139.9 7 1 7 25 36 3.6
Nonmanufacturing ..... 135.1 139.0 | 139.9 1.0 12 6 35 39 3.6
Occupational group
White collar ..... 136.5 140.6 141.4 1.0 1.4 6 3.5 4.0 3.6
Excluding sales .. 136.9 | 140.6 | 141.2 1.0 12 4 3.4 37 3.1
Professional specialty and technical 136.7 | 140.0 | 141.0 7 12 7 27 31 3.4
Executive, administrative, and manage! 137.3 141.7 144.8 15 14 a 44 47 33
Administrative support, including clerical 136.9 | 140.4 | 141.3 8 8 6 3.2 3.4 3.2
132.4 | 135.3 | 136.1 5 7 6 26 27 28
135.6 | 139.4 | 140.0 7 ‘ni 4 35 36 3.2
135.7 | 139.0 | 139.8 5 15 6 23 3.0 3.0
Industry
136.0 | 139.0 | 139.7 A 18 5 22 27 27
135.3 | 138.7 | 138.8 7 18 a 25 32 26
1372 | 140.3 | 140.7 9 17 3 23 32 26
137.6 | 140.7 | 141.2 1.0 17 4 25 32 26
135.9 | 138.8 | 139.6 4 17 6 22 25 27
136.2 | 139.1 139.9 A 18 6 21 25 27
135.8 | 138.8 | 139.3 2 19 4 2.0 24 2.6
1372 | 140.1 141.5 7 14 1.0 24 28 34
Public administration¢ .... 135.1 138.9 | 139.9 7 WA 7 25 36 3.6
Occupational group

135.5 | 138.4 | 139.3 5 1.6 7 23 27 28
135.1 137.7 | 138.5 4 15 6 21 23 25
Executive, administrative, and managerial 136.4 | 140.4 | 141.6 6 18 go 26 35 3.8
Administrative support, including clerical 136.1 139.5 | 140.3 6 17 & 23 31 3.1
134.2 | 136.8 | 137.8 7 12 7 23 26 27
187.8 | 143.0 | 143.4 6 14 3 25 44 44

1 Includes wages, salaries, and employer casts 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 govemments, SIC's 91 through 96.

5 Formerty called hospitals and other services.

6 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.


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
Sep. Dec. Mar. June Sep. Dec. Mar. June Sep. Dec.
1998 1998 1997 1997 1997 1997 1998 1998 1998 1998
WAGES AND SALARIES-—Continued
Occupational group
White collar .. 139.0 | 140.1 0.9 0.9 1 13 0.9 1.0 15 0.8
Blue collar .. 132.4 | 133.2 7 1.0 8&8 6 9 8 8 &
Service .. 134.4 | 135.0 a) 1.0 1.6 7 1.0 2 8 4
BENEFIT COSTS
Civilian workers .... 143.8 | 144.6 3 5 5 8 4 8 8&8 6
State and local government 142.0 142.6 A 3 3 3 8 7 1.0 4
Private industry ... 144.2 | 145.1 A 6 5 a 3 8 6
Industry
Goods producing? 143.0 | 143.5 <A 6 6 2 3 & 5 3
Manufacturing 142.7 | 143.0 3 8 5 4 4 5 A 2
Service producing? ... 144.9 | 146.0 4 6 5 14 6 8 8 8
Nonmanufacturing 146.0 A & 5 an & 1.0 8 7
Occupational group
146.4 | 147.8 4 5 3 1.4 5 7 6 1.0
140.9 | 141.6 1 A 6 2 a 8 4 5
144.8 | 144.6 8 a 14 2 41 2 8 oA
1 includes wages, salaries, and employer costs for employee benefits. Intemet site (http:/stats.bls.gov/ecthome.him). All series will continue to be
3 Includes mining, construction, and manufacturing. Pubjished until further notice.
3 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. Boeing. ‘See Explanatory Notes for further information.
news release (excluding seasonaily adjusted series) will be available on the 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—
A 3 months ended— 12 months ended—
Industry and occupational group Dec. Sep. Dec.
1997 1998 1998 Dec. Sep. Dec. Dec. Sep. Dec,
1997 1998 1998 1997 1998 1998
Industry-Continued
Nonmanufacturing industries .. 134.7 | 138.9 | 139.7 Ww 1.2 0.6 3.8 42 37
White collar ... 136.5 141.1 142.0 1.2 14 & 41 46 4.0
Excluding sales 137.9 142.0 142.7 1.2 1 5 41 43 35
Blue collar 130.1 133.4 | 134.0 5 8 4 27 3.4 3.0
Service 133.8 136.9 137.7 8 a 6 4.0 3.2 29
Occupational group
136.7 141.1 142.0 Wt 12 6 3.8 44 3.9
137.4 141.3 141.9 ww 1.0 4 3.7 40 3.3
137.8 141.6 142.6 8 at 7 3.41 3.6 35
137.4 141.9 141.8 1.6 14 -4 46 5.0 3.2
133.5 | 140.4 | 142.6 1.0 23 6 42 6.2 68
Administrative support, including
clerical 137.0 140.6 | 141.4 8 7 & 34 35 3.2
Blue collar .... 132.3 | 135.2 | 135.9 5 7 5 26 27 27
Precision production, craft, and repair 131.9 135.4 136.1 2 7 5 22 28 3.2
Machine operators, assemblers, and
inspectors 133.0 | 135.7 | 136.8 6 7 8 27 26 29
Ti 9 128.9 130.7 | 130.7 7 6 oO 3.0 21 14
Handlers, equipment cleaners, helpers, and
135.8 | 138.5 | 139.2 12 7 5 3.4 32 25
134.1 137.3 | 138.0 8 1.0 5 4.0 32 29
Production and nonsupervisory
occupations .. 1342 | 138.0 | 139.0 & 1.0 7 32 3.6 3.6
1 includes wages, salaries, and employer costs for employee benefits. and, retail trade; finance, insurance, and real estate; and service industries.
2 Includes mining, construction, and manufacturing. 5 Estimates for transportation and public utilities reflect the changes in
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 © ‘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 (httpy/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 SZ
Department 2%
of Labor

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

Technical Contact: USDL: 99-24
(202) 606-6199 ocltinfo@bls.gov

Media Contact: TRANSMISSION OF MATERIAL
(202) 606-5902 hoyle_k@bls.gov IN THIS RELEASE IS EMBARGOED

Internet address: UNTIL 8:30 A.M. (EST),
http://stats.bls.gov/ecthome.htm THURSDAY, JANUARY 28, 1999

EMPLOYMENT COST INDEX—DECEMBER 1998

The Employment Cost Index (ECT), not seasonally adjusted, for December 1998 was 139.8 (une
1989=100), an increase of 3.4 percent from December 1997, the U.S. Department of Labor’s Bureau of Labor
Statistics reported today. The ECI measures changes in compensation costs, which include wages, salaries,
anid employer costs for employee benefits.

Quarterly changes, seasonally adjusted

On a seasonally adjusted basis, compensation costs for civilian workers (private industry plus state and
local government) rose 0.7 percent during the September-December 1998 period, following a gain of 1.0
percent in September 1998. Wages and salaries also increased 0.7 percent during the September-December
1998 period. The increase was 1.2 percent in the June-September 1998 period. Benefit costs increased 0.6
percent in the September-December 1998 period; for each of the two previous quarters, the increase was 0.8

percent.

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

Mar. = June Sep. Dec. Mar. June Sep. Dec.
Compensation Component 1997__1997__ 199719971998 1998 ~—:1998 _~—-1998

Civilian workers
Compensation costs 0.7 0.8 0.8 1.0 0.7 0.9 1.0 0.7
Wages and salaries 0.8 0.9 0.9 1.1 0.8 0.9 1.2 0.7
Benefit costs 0.3 0.5 0.5 08 04 08 0.8 0.6
Private industry
Compensation costs 06 09 0.8 1.0 0.7 0.9 1.1 0.7
Wages and salaries 0.9 0.9 1.0 ld 0.8 1.0 13 0.7
Benefit costs 0.1 0.6 05 0.9 03 0.8 0.7 0.6
State and local government
Compensation costs 0.6 0.5 0.6 0.6 0.8 0.7 0.8 0.6
Wages and salaries 0.6 0.6 0.7 0.8 0.7 0.7 0.7 0.8
Benefit costs 04 03 0.3 0.3 0.8 0.7 1.0 0.4

Compensation costs for private industry workers increased 0.7 percent during the September-December
1998 period; in September, the increase was 1.1 percent. The 3-month change in costs of wages and salaries
was 0.7 percent in December 1998; in September, it was 1.3 percent. Benefit costs rose 0.6 percent in
December 1998; in September, the increase was 0.7 percent. (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—
7 3 months ended— 12 months ended—
Industry and occupational group Dec. Sep. Dec.
1997 1998 1998 Dec. Sep. Dec. Dec. Sep. Dec.
1997 1998 1998 1997 1998 1998
Private industry workers ... 132.3 | 136.6 | 137.4 1.0 1.3 0.6 3.9 43 3.9
Excluding sales occupations 132.4 | 136.3 | 136.9 9 Ww 4 3.8 3.9 34
Industry
Goods producing! 130.6 | 134.3 | 135.2 5 8 7 3.0 34 35
Excluding sales 130.0 | 133.6 | 134.4 5 8 6 29 33 3.4
White collar ... 132.9 | 137.4 | 138.2 5 8 6 29 3.9 4.0
Excluding sales 131.6 | 135.7 | 136.4 5 38 5 27 37 3.6
Blue collar 129.2 | 1323 | 133.3 & & 8 3.4 3.0 3.2
Construction? .... 124.9 | 128.5 | 129.3 2 3 6 3.4 3.0 35
1322 | 136.0 | 136.8 7 1.0 6 3.0 3.6 35
133.6 138.3 139.0 6 Ww 5 27 41 4.0
1322 136.3 137.1 7 1.0 & 26 38 37
1312 | 1343 | 135.3 8 9 7 3.1 34 3.1
131.9 135.9 | 136.9 5 1.0 7 27 3.6 3.8
134.0 | 137.2 | 138.3 5 2 38 24 29 32
129.8 133.9 134.5 4 A 4 2.6 3.6 36
139.6 141.0 143.2 a 4 1.6 1.8 1.9 26
132.6 | 136.0 | 136.8 3 8 & 3.2 35 3.2
133.1 137.6 | 138.4 12 15 & 44 46 4.0
133.9 | 137.9 | 138.5 12 12 4 44 42 3.4
134.3 | 139.2 | 140.1 13 1.6 6 45 5.0 43
135.9 | 140.2 | 140.7 13 13 4 46 45 35
128.9 | 132.4 | 132.9 8 1.0 4 3.3 35 34
131.0 | 134.2 | 135.2 9 9 7 43 3.4 3.2
Transportation and public utilities 131.3 | 134.3 | 135.1 2 Wa 6 3.4 32 29
Transportation2.+ 129.5 | 132.4 | 132.9 8&8 15 4 3.8 3.0 26
Public utilities 1335 | 136.5 | 137.8 Wt 6 1.0 29 3.4 3.2
‘Communications 134.0 | 136.7 | 138.0 17 7 1.0 2.8 37 3.0
Electric, gas, and sanitary services 132.9 | 136.3 | 137.4 5 5 8 3.0 34 3.4
Wholesale and retail trade 131.6 136.6 | 137.0 5 15 3 3.6 44 41
Excluding sales 133.2 | 137.6 | 138.2 8 15 4 4.3 44 38
Wholesale trade? 133.6 | 139.3 | 141.3 5 1.6 14 3.41 47 5.8
135.0 | 139.6 | 140.8 8 1.3 a 4.0 43 43
130.6 | 135.2 | 134.8 5 1.4 -3 3.8 44 32
128.4 | 132.2 | 133.0 13 5 6 3.0 43 3.6
127.0 | 131.7 | 1305 2 Q +9 1.8 39 28
Finance, insurance, and real estate? 130.6 | 138.1 139.8 3.3 24 12 6.9 93 7.0
Excluding sales ... 133.6 |. 139.7 | 139.6 33 1.6 “1 66 8.0 45
138.3 147.0 144.4 73 27 18 11.7 14.0 44
130.2 | 138.7 | 138.5 12 29 “1 3.3 78 6.4
133.7 | 136.6 | 137.9 & 7 1.0 3.4 28 3.1
136.2 {| 140.0 | 140.8 am 12 6 44 39 3.4
137.3 | 141.8 | 144.1 18 1.9 1.6 5.5 51 5.0
135.4 | 137.5 | 137.4 8 7 ~ 3.0 24 15
133.2 | 135.8 | 136.5 8 8 5 2.2 27 25
- - = 8 1.0 5 3.1 3.9 3.7
138.4 | 1428 | 143.5 4 23 5 3.4 3.6 37
Colleges and universities 138.7 | 1428 | 143.6 7 22 6 3.7 3.6 35

See footnotes at end of table.


ll

Table 5. Employment Cost Index for wages and salaries for civilian and State and local government workers,

industry and occupational group

by

{Not seasonally adjusted data)
Indexes (June 1989=100) Percent changes for—
A. 3 months ended— 12 months ended—
Industry and occupational group Dec. Sep. Dec.
1997 1998 1998 Dec. Sep. Dec. Dec. Sep. Dec.
1997 1998 1998 1997 1998 1998
Civilian workers .. 132.8 | 136.8 | 137.7 0.9 13 0.7 3.8 4.0 37
Excluding sales occupations .. 132.8 | 136.6 | 137.3 8 13 5 37 37 3.4
Industry
Goods producing? 130.6 | 134.4 | 135.2 5 8 6 3.0 35 3.5
Manufacturing 132.2 | 136.0 | 136.8 7 1.0 6 3.0 3.6 35
Service producing’ 133.6 | 137.8 | 138.7 Ww 15 7 4.0 42 3.8
Services .. ~| 136.0 | 139.6 | 140.5 9 15 6 3.7 3.6 3.3
Health services 135.4 | 137.6 | 137.6 8&8 8 0 3.0 25 1.6
Hospitals ... 133.6 | 136.4 | 137.1 8 1.0 5 24 29 26
Educational services -| 135.9 | 139.1 140.0 4 19 6 27 28 3.0
Public administration3 | 181.4 | 134.8 | 135.9 8 12 8 29 35 3.4
Nonmanufacturing 137.0 | 137.8 1.0 14 6 3.9 42 3.8
Occupational group
138.8 | 139.7 1.0 15 6 3.9 44 4.0
138.8 | 139.5 1.0 1.3 5 3.8 4.0 35
1385 | 139.4 7 14 6 3.3 34 3.3
140.5 | 140.3 1.6 16 ~ 48 52 35
137.5 | 138.6 8 1.0 8&8 3.6 3.6 3.7
132.6 | 133.3 7 9 5 34 3.3 3.1
136.1 137.0 8&8 12 7 3.9 35 3.3
‘State and local government 134.4 | 137.6 | 138.5 6 16 7 27 3.0 34
Industry

Services .. 135.3 | 1384 | 139.2 A 18 & 26 27 29
Excluding schools+.5 134.4 | 137.8 | 1382 8 17 3 3.0 3.4 28
Health services .. 135.3 | 138.7 | 139.2 1.0 16 4 3.0 3.6 29
Hospitals ..... 135.2 | 138.6 | 139.1 Wa 15 4 3.0 37 29
Educational services 135.3 | 138.4 | 139.3 A 1.9 7 25 27 3.0
a 135.5 | 138.5 | 139.5 4 18 7 25 27 3.0
Elementary and secondary .. 135.7 | 138.7 | 139.3 3 1.9 4 25 25 27
Colleges and universities 134.6 | 137.7 | 139.6 7 16 1.4 26 3.1 3.7
Public administration® ... 131.4 | 134.8 | 135.9 8 12 8 29 35 3.4
137.6 | 138.5 6 18 7 26 29 3.0
137.9 | 138.7 5 17 6 26 26 27
138.0 | 139.3 8&8 18 a 3.0 37 3.9
135.4 | 136.5 7 16 8 26 3.0 3.2
135.1 136.0 8 1.2 7 27 3.0 28
139.2 | 140.0 7 15 & 3.2 37 3.6

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

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

4 Formerly called hospitals and other services.

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).
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—
, 3 months ended— 12 months ended—
Industry and occupational group Dec. Sep. Dec.
1997 | 1998 | 1998 | Dec. | Sep. | Dec. | Dec. | Sep. | Dec.
1997 1998 1998 1997 1998 1998
Private industry workers .. 135.1 139.0 | 139.8 0.9 1 0.6 3.4 3.8 35
Excluding sales occupations 135.2 | 138.8 | 139.4 8 2 A 3.4 35 3.4
industry
134.1 137.1 137.8 4 7 5 2.4 26 28
133.6 | 136.5 | 137.2 4 7 5 24 26 27
136.2 | 139.7 | 140.2 A & 4 25 3.0 29
135.0 | 138.3 | 138.8 4 7 4 22 28 28
132.8 | 185.5 | 136.3 3 7 6 25 23 26
129.7 | 133.4 | 134.3 oO 5 7 26 29 35
Manufacturing 135.3 | 138.2 | 138.9 5 7 5 24 27 27
White collar 136.7 | 140.1 140.5 7 7 3 23 3.2 28
‘Excluding sales 135.3 | 138.3 | 138.7 6 7 3 21 28 25
Blue collar .. 134.3 | 136.8 | 137.7 4 7 7 24 23 25
135.7 | 138.5 | 139.2 5 8 5 23 26 26
136.9 | 139.3 | 139.7 7 3 3 -4 14 2.0
134.3 137.4 136.6 -2 2 ~6 4 21 17
139.6 | 140.8 | 143.4 16 5 1.8 1.9 -7 27
Nondurables. 134.5 | 137.6 | 138.2 6 7 4 27 29 28
Service producing? 135.3 | 139.6 | 1405 1 13 6 3.9 43 3.8
Excluding sales 136.1 140.0 | 140.6 12 Wt 4 4.0 41 33
White collar ... 136.6 144.2 142.2 13 14 7 4.2 47 41
138.1 142.2 | 1428 1.3 11 4 441 43 3.4
130.9 | 134.3 | 134.8 7 8 4 28 33 3.0
133.9 | 137.0 | 137.8 9 2 6 44 32 29
134.2 | 138.5 | 139.3 1.0 1.0 6 29 42 3.8
133.4 | 136.7 | 137.3 1.0 13 4 3.3 35 29
135.1 140.7 | 141.9 1.0 7 9 26 52 5.0
. 134.0 | 140.5 | 141.7 17 9 a 22 66 5.7
136.4 | 141.0 | 142.1 3 5 8 3.0 37 42
132.9 137.6 138.2 A 13 4 3.3 3.9 40
134.0 | 138.1 138.8 8 13 5 3.9 3.8 3.6
135.1 140.8 | 1428 4 1.6 14 3.2 46 5.7
135.4 | 140.0 | 141.2 7 13 a) 3.4 41 43
131.7 | 135.9 | 135.6 5 am 72 3.4 37 3.0
130.0 | 133.2 | 134.0 Ww 2 6 29 3.6 3.1
129.4 ) 133.7 | 132.7 -3 & 7 8 3.0 26
Finance, insurance, and real estate? 1345 | 141.0 | 1425 3.4 1.9 14 67 8.0 5.9
Excluding sales .... 137.6 | 1432 | 1433 34 13 A 65 73 41
Banking, savings and loan, and other

credit agencies? 140.6 | 148.4 | 146.7 5.6 21 cael 9.8 N15 43
insurance ... 134.8 | 141.9 | 141.7 13 22 A 4.0 6.6 5.1
138.6 | 1416 | 1425 a9 5 6 3.8 34 28
138.5 | 141.8 | 142.7 Ww 11 6 3.8 35 3.0
138.6 | 143.5 | 145.9 17 20 17 5.2 5.3 5.3
138.1 139.0 | 139.0 8 2 0 27 15 7
136.5 | 139.1 139.9 8 7 & 21 27 25
- - - 8 1.0 & 26 33 3.2
142.6 | 147.0 | 147.7 7 22 5 3.3 38 3.6
143.7 | 1478 | 148.5 8 241 5 3.3 37 3.3

‘See footnotes at end of table.


Employment Cost Index

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

Chart B. Changes in compensation,

seasonally adjusted and not seasonally

adjusted, private industry

Benefits

Wages & salaries

12-month percent change

80 82 84 86 88 90 92 94 96 98

Seasonally adjusted Not seasonally adjusted

3-month percent change

80 82 84 86 88 90 92 94 96 98

| Chart C. Changes in compensation,
| goods-producing and. service-
_ producing sectors, private industry

Goods-producing Service-producing

| 12-month percent change

25
eT

0°
80 82 84 86 88 90 92 94 96 98

10-

Chart D. “Changes i in compensation,
white-collar and blue-collar
occupations, private industry

White-collar Blue-collar

| 12-month percent change

12°

8r

0 . . !
80 82 84 86 88 90 92 94 96 98

Bureau of Labor Statistics, Office of Compensation Levels and Trends

January 1999 202/606-6199 _ocltinfo@bls.gov

http://stats.bls.gov/ecthome.htm.


15

Table 8. Employment Cost Index for benefits for civilian, State and lo

workers by industry, occupational group, and bargaining status
(Not seasonally adjusted data)

cal government, and private industry

Indexes (June 1989=100) Percent changes for—
Industry, occupational group, and 3 months ended— 12 months ended—
bargaining status Dec. Sep. Dec.
1997 1998 1998 Dec. Sep. Dec. Dec. Sep. Dec.
1997 1998 1998 1997 1998 1998
Civilian workers .. 141.1 144.0 | 144.7 0.6 0.7 05 21 2.6 26
State and local govern 138.6 | 142.1 142.7 3 1.3 4 1.3 28 3.0
Private industry ... 144.8 | 144.5 145.2 7 6 5 23 26 24
Industry
Goods producing? .. 1415 | 143.0 | 143.2 Oo A A 1.3 1 12
Service producing 141.4 | 144.9 | 145.7 Ww 8 6 29 3.6 3.0
142.6 142.7 2 A a 1.4 8 7
143.8 | 142.6 31 5 +8 5.7 2.6 3
145.5 | 141.2 14 3 3.0 4.0 ~9 25
140.7 | 144.0 5.8 9 23 8.3 5A 3.2
145.0 145.8 2 8 6 2.6 34 3.0
146.6 147.4 1.0 7 5 2.6 32 28
141.0 141.6 a 4 A 15 1.6 1.9
144.7 144.8 4 7 A 3.3 23 2.0
142.0 | 145.0 | 145.5 1 8 3 9 2.0 25
141.5 | 144.2 | 144.9 9 6 5 27 29 24

1 Includes mining, construction, and manufacturing.


7

occupation series. A fuller explanation of the calculation of index numbers appears in an article, "Estimation
procedures for the Employment Cost Index," in the May 1982 issue of the Monthly Labor Review.

Beginning with the March 1990 ECI release, indexes were rebased to June 1989=100. A description of
the rebasing is included in the article "Employment Cost Index Rebased to June 1989," in the April 1990 issue

of the Monthly Labor Review.

Beginning with the December 1990 ECI release, seasonally adjusted data are available for selected ECI
series. Seasonal adjustment removes the effects of events that follow a more or less regular pattern each year.
These adjustments make nonseasonal patterns easier to spot. 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,
so they are not necessarily a weighted average of the component occupation 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 seasonally adjusted factors for 1999, and revised seasonally adjusted indexes for the past
five years, will be available Tuesday, April 27, 1999 on the Internet at (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.

The costs per hour worked of compensation components, based on March 1998 data from the ECI, are
published in a separate news release titled "Employer Costs for Employee Compensation - March 1998," and
in an annual bulletin, Employer Costs for Employee Compensation, 1986-97, (Bulletin 2505). 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 ECL. Therefore, year-to-year changes in the
cost levels will 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. All 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.

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 until further notice,
although, as indicated above, standard errors for some series are large. Standard errors for all estimates
(excluding seasonally adjusted series) will now be available on the Internet site

(http://stats.bls.gov/ecthome.htm) shortly after publication of the news release.


3

The changes in compensation costs for nonunion workers in private industry were reported at 3.5
percent, while costs for union workers were 3.0 percent. Compensation costs in service-producing industries
increased 3.9 percent for nonunion workers and 3.0 percent for union workers. At the same time,
compensation costs in goods-producing industries increased 3.0 percent for union workers and 2.7 percent for
nonunion workers. In manufacturing, the total compensation increase was 2.7 percent for union workers and
2.6 percent for nonunion workers. Compensation in blue-collar occupations increased 2.8 percent for both
union and nonunion workers. (See table 4.)

State and local government

In state and local governments, the December 1998 over-the-year increase in wages and salaries was 3.1
percent, less than the 3.9 percent recorded in private industry. In December 1997, the increase was 2.7
percent. The December 1998 increase includes health services at 2.9 percent, educational services at 3.0
percent, and public administration at 3.4 percent. State and local government benefit costs for December 1998
increased 3.0 percent, up from the December 1997 increase of 1.3 percent. (See tables 5 and 8.)

NOTES:

Starting in March 1999, seasonal adjustment factors will be published to reflect the new seasonal
patterns exhibited over the past year. The new factors for 1999, along with revised seasonally adjusted indexes
for the past five years, will be available Tuesday, April 27, 1999. These data can be obtained on the Internet

site (http://stats.gov/ecthome.htm) or upon request.

The ECI for March 1999 is scheduled to be released Thursday, April 29, 1999, at 8:30 a.m. (EDT).

EC] 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).

Send e-mail for technical assistance in using the BLS Internet site (labstat.helpdesk@bls.goy) or for
ECI data requests (ocltinfo@bls.gov).

News releases and other information are available from the BLS fax-on-demand service. To request a
document fax, call 202-606-6325. 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 change in compensation costs for workers in the goods-producing industries was 0.6 percent during -
the September-December period and 0.7 percent in the previous 3-month period. The change in compensation
costs in the service-producing industries was 0.8 percent in December 1998, down from 1.3 percent in
September 1998. The 3-month change in wages and salaries in the service-producing industries was 0.7
percent after a 1.5 percent gain in September. Benefit costs rose 0.8 percent in December for workers in the
service-producing industries, the same gain as in September. (See table 1.)

Compensation costs for state and local government workers increased 0.6 percent during the September-
December 1998 period, following a gain of 0.8 percent in September. Wages and salaries increased 0.8
percent in December, following gains of 0.7 percent in each of the previous three quarters. Benefit costs
increased 0.4 percent in the December quarter; the previous quarterly increase was 1.0 percent. (See tables A
and 1.)

Over-the-year changes. not seasonally adjusted

Compensation costs for civilian workers (not seasonally adjusted) were up 3.4 percent for the year ended
in December 1998. This compares with increases of 3.3 percent in December 1997 and 2.9 percent in
December 1996. Compensation costs in private industry rose 3.5 percent in December 1998, compared with a
3.4 percent increase in December 1997 and 3.1 percent in December 1996. Compensation costs for state and
local governments increased 3.0 percent for the year ended in December 1998. The gain in local and state
governments for the year ended in December 1997 was 2.3 percent, and, in December 1996, the increase was
2.6 percent. (See tables B, 2, and 3.)

Private industry

In private industry, wages and salaries rose 3.9 percent for the year ended in December 1998, the same
as reported for the year ended in December 1997. (See tables B and 6.) Benefit costs for private industry
workers increased 2.4 percent for the year ended in December 1998, compared with 2.3 percent in December
1997. (See chart A and tables B and 8.)

In private industry, over-the-year compensation cost increases were 3.9 percent for white-collar
occupations, 2.7 percent for blue-collar occupations, and 2.9 percent for service occupations. Among the
occupational groups, changes in compensation costs ranged from 1.4 percent for transportation and material
moving occupations to 6.8 percent for sales occupations. Compensation costs for executive, administrative,
and managerial occupations increased 3.2 percent. (See table 3.)

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

Compensation Component 1993 1994 1995 1996 1997 1998
Civilian workers
Compensation costs 3.5 3.0 27 29 3.3 3.4
Wages and salaries 3.1 2.8 2.9 3.3 3.8 3.7
Benefit costs 4.6 3.4 2.3 2.0 2.1 2.6
Private industry
Compensation costs 3.6 3.1 2.6 3.1 3.4 3.5
Wages and salaries 3.1 2.8 2.8 3.4 3.9 3.9
Benefit costs 5.0 3.7 2.2 2.0 2.3 24
State and local government
Compensation costs 2.8 3.0 2.9 26 2.3 3.0
Wages and salaries 2.7 3.1 3.2 2.8 2.7 3.1
Benefit costs 2.9 2.8 2.6 2.2 1.3 3.0

The changes in private industry compensation costs were 3.8 percent in service-producing industries and
2.8 percent in goods-producing industries for the year ended December 1998. Compensation costs had risen
3.9 percent in service-producing industries and 2.4 percent in goods-producing industries in the prior year.
Among industry divisions, December 1997-to-December 1998 changes ranged from 2.7 percent in
manufacturing to 5.9 percent in finance, insurance, and real estate. (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—
K. 3 months ended— 12 months ended—
Industry and occupational group Dec. Sep. Dec.
1997 1998 1998 Dec. Sep. Dec. Dec. Sep. Dec.
1997 1998 1998 1997 1998 1998
Industry—Continued
Nonmanufacturing industries 132.1 136.5 | 137.4 Wt 13 07 42 44 4.0
White collar .. 134.1 138.9 | 139.8 1.3 1.5 6 45 49 43
Excluding sales .. 135.5 | 139.8 | 140.3 13 12 4 46 45 3.5
Blue collar 127.4 130.5 | 131.1 6 8 5 3.2 3.2 31
Service .. 130.9 | 134.1 135.1 9 9 7 43 3.4 3.2

Occupational group

White collar 134.2 139.0 139.9 1 15 6 43 47 42
Excluding sales .. 134.8 139.1 139.7, 1 12 4 42 4.3 3.6
Professional speci inical .. 138.7 | 139.7 12 7 3.8 37 3.6
Executive, administrative, and managerial .. : 140.9 | 140.5 16 3 5.0 55 35
Sales? 131.4 138.8 141.3 8 44 69 75

Administrative support, including

lerical 133.9 137.9 | 138.9 3 7 3.6 3.8 3.7
129.1 132.4 133.2
128.7 | 132.3 | 133.0

3.2 3.2 3.2
29 3.2 3.3

no » Baede
x

130.6 | 133.8 | 134.9
125.1 127.6 | 127.8

6

5

8 3.3 3.3 3.3
2 3.3 28 22
5

7

b&b

laborers ... 131.8 | 135.1 | 135.8 12 1 37 38 3.0
Service . 131.4 | 1344 | 135.3 9 141 43 35 3.2
Production and nonsupervisory

occupations .... 131.2 | 135.2 | 136.4 8 1.2 3 37 3.9 4.0
1 includes mining, construction, and manufacturing. and retail trade; finance, insurance, and real estate; and service industries.
2 average standard errors (SE) for the series exceed 0.3 percent for 4 Estimates for transportation and public utilities reflect the changes in

‘S-month changes and 0.6 percent for 12-month changes for the five years ‘SiC.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
Seties, SEs for estimates in this news release (excluding seasonally adjusted Hourly Eamings index, which was discontinued in January 1989.
Series) will be available on the intemet site (http://stats.bls.gow/ecthome.htm).
‘All series will continue to be published unti 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 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 EC] 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 private economy and the public
sector--excluding farms, 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 18,000 occupations
within about 4,400 sample establishments in private industry and approximately 4,100 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 sample establishments are classified in 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.
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. Beginning with March 1995, the jobs are
classified according to the 1990 Census, which differs little from the 1980 Census.

Fixed employment weights are used each quarter to calculate the most aggregate indexes--civilian,
private, and state and local governments. These fixed weights are also used to derive all of the industry and
occupation series indexes. Beginning in March 1995, 1990 employment counts, primarily from the Bureau's
Occupational Employment Statistics survey, were 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, and available upon request. From June 1986 through December
1994, employment counts from the 1980 Census were used as weights. Prior to June 1986, employment
counts from the 1970 Census were used.

For the series based on bargaining status, region, or 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